On July 10, the Federal Trade Commission (FTC) announced that it had entered into a consent order permanently banning a state debt relief services provider from advertising or providing debt relief services. The complaint, filed on January 26, alleged that the provider violated the Federal Trade Commission Act and Telemarketing and Consumer…
On July 10, the Federal Trade Commission (FTC) announced that it had entered a consent order with affiliated auto dealerships that allegedly misrepresented to consumers that auto payment programs or add-on products would save them money. The consent order prohibits the dealerships from representing that any payment program or add-on product or…
The Consumer Financial Protection Bureau’s recent action against two credit card vendors regarding credit monitoring and identity theft protection services is a reminder of the legal risks associated with certain add-on products. The July 1 settlement, in which the CFPB found that the vendors misled customers about the benefits of…
On July 8, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced that claims concerning a bank’s alleged debt collection practices in violation of the Consumer Financial Protection Act (“CFPA”) had been settled for over $200 million. According to the consent order, the bank “sold to debt buyers certain accounts that were inaccurate, settled, discharged…
On July 8, 2015, the Federal Trade Commission (FTC) announced that settlements were approved against companies and individuals who allegedly operated a fraudulent debt collection scheme that targeted Spanish-speaking consumers. According to the complaint, the defendants cold called Spanish-speaking consumers nationwide, and falsely held themselves out to be government officials seeking to collect a debt…
On July 8, 2015, New York Attorney General Eric T. Scheiderman announced that a court order was obtained that permanently bars a consumer debt collection agency from operating as a debt collector and further requires payment of $550,000 in consumer restitution, civil penalties, and costs. The order was signed following a…
On July 7, the Federal Trade Commission (FTC) announced that a federal court entered a preliminary injunction halting an alleged nationwide debt relief telemarketing scam and freezing the defendants’ assets. The FTC claims that the defendants millions from consumers. The complaint, brought by the FTC and Florida Attorney General, alleged that the defendants contacted consumers…
On July 7, 2015, the FTC announced that it reached two stipulated settlements (available here and here) with payday lenders who allegedly deceived customers by signing them up for loans without their permission and then withdrawing “finance” charges indefinitely. The settlements stem from allegations in a complaint filed last year that defendants “purchase consumers’ sensitive financial information from online lead generators or data…
On June 22, 2015, the US Attorney’s office for the Eastern District of Pennsylvania filed an information charging Adrian Rubin of Jenkintown, PA, with: (1) one count of conspiracy to violate RICO, 18 U.S.C. § 1962(d); (2) one count of conspiracy to commit mail fraud and wire fraud, 18 U.S.C. §…
For the second time in recent weeks, the Consumer Financial Protection Bureau (CFPB) delayed the launch of the new integrated disclosures for residential mortgage loans under the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA). The launch date, now set for Saturday, October 3, was announced…
On July 1, 2015, Governor Cuomo announced a student loan debt relief provider was ceasing operations following an investigation by the Student Protection Unit of the Department of Financial Services. The company allegedly engaged in misleading and deceptive advertising as well as other improper practices. The company claimed it could…
The Consumer Financial Protection Bureau (“CFPB”) took action against two credit card vendors, entering into proposed consent orders regarding the companies’ offerings of allegedly unlawful add-on products. Credit card companies offer consumers “add-on” services, such as credit monitoring or identity theft protection for a monthly or annual membership fee. Following an…
On Monday, June 29, 2015, the Florida Attorney General and the Federal Trade Commission (“FTC”) obtained an ex parte temporary restraining order from a federal court for the Middle District of Florida to shut down the operations of a Florida corporation operating in violation of the FTC’s Telemarketing Sales Rule. Under the Telemarketing Sales…
On June 26, 2015, the Maryland Attorney General announced the filing of administrative charges against a regional law firm over claims the firm charged illegal advance fees in connection with loan modification services. According to the Maryland Attorney General, lawyers at the firm promised consumers that they could obtain modification…
On June 18, 2015, the Federal Communications Commission (“FCC” or the “Commission”) issued a package of declaratory rulings (“FCC 15-72”) related to telemarketing. Although FCC 15-72 has yet to be officially released, the Commission indicated the measure is significant, particularly in the Telephone Consumer Protection Act (“TCPA”) realm. A federal law…
On June 10, 2015, the CFPB issued a Final Rule amending the scope of its regulatory authority to include “larger participants” of the automobile financing industry. Under the Final Rule, the CFPB will supervise certain nonbank auto finance companies that (1) originate loans for the purchase of automobiles; (2) refinance…
On June 23, 2015, the West Virginia Attorney General announced a settlement with an automobile title loan and debt collection company over claims the company engaged in abusive debt collection practices. According to the West Virginia Attorney General, the company repeatedly called consumers at inconvenient times regarding their delinquent loan payments and…
On June 23, 2015, the Consumer Financial Protection Bureau (CFPB) released its Supervisory Highlights report detailing the Bureau’s supervision efforts for the first four months of 2015. The report summarizes the most common “illegal practices” uncovered by the Bureau and identifies the areas where the Bureau has focused on in its…
On June 22, 2015, the Maryland Attorney General announced a settlement with two regional mortgage and credit consulting companies and their sole owner over claims the companies made false representations regarding their ability to obtain mortgage approval for consumers, solicited illegal advance fees, and engaged in credit counseling without the…
On June 8, 2015, the 8th Circuit reversed the Eastern District of Missouri and revived class claims in Golan et al. v. Veritas Entertainment, LLC et al. In Golan, the plaintiff alleged that the defendants—producers of the movie, “Last Ounce of Courage”—robo-called consumers to promote the film in violation of…