In the wake of the financial crisis and with the advent of the Consumer Financial Protection Bureau (CFPB), federal and state enforcement officials have increasingly scrutinized consumer financial products and services. In many situations, these officials and agencies coordinate to advance common or similar claims and actions. Against this backdrop, we created the Consumer Finance Enforcement Watch blog – the marketplace’s first resource for real-time reporting on the full range of public federal and state consumer finance enforcement activity. Here, you will also find links to enforcement documents, statistics on the volume and nature of enforcement actions as well as reports and comments on significant enforcement trends and issues.

CFPB Settles Claims with Corporations that Targeted Struggling Homeowners

The Consumer Financial Protection Bureau (CFPB) settled claims with three defendants after the CFPB claimed the corporations were targeting homeowners who were struggling to make mortgage payments.  The parties stipulated to final judgments for the individual defendants that were filed with the Court.  The CFPB also filed a motion for default judgment as…

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Illinois AG Sues Student Loan Debt Settlement Companies Under State Consumer Protection Laws

On May 4, 2015, Illinois Attorney General Lisa Madigan announced five lawsuits filed on behalf of the State against student loan debt settlement services companies based in Texas, California, Florida, Georgia, and Illinois. The complaints allege that the companies violated Illinois’ consumer protection laws by charging hundreds to thousands of…

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Federal Court Enters Preliminary Injunction Against Mortgage Relief Company

FTC

On April 30, 2015, the FTC announced that a Federal Court entered a preliminary injunction against a regional mortgage relief company over claims the company falsely represented to consumers that they could obtain mortgage modifications. The company allegedly represented that it was associated with various federally-approved mortgage relief programs, and…

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CFPB and Maryland Attorney General File Complaint Against Title Company Alleging Improper Kickback Scheme

On April 29, 2015, the Consumer Financial Protection Bureau and the Maryland Attorney General announced the filing of a complaint and proposed consent order against a regional title insurance company, its principals, and certain loan officers. The title company allegedly provided payments to loan officers in exchange for referrals for…

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Regional Bank Settles Allegations of Mortgage Lending Quality-Control Deficiencies

On April 2, 2015, a regional bank reached an agreement in principle to settle allegations brought by the U.S. Department of Justice (DOJ) and U.S. Department of Housing and Urban Development (HUD) relating to its former subsidiary’s issuance of mortgage loans insured by the Federal Housing Administration (FHA). The DOJ…

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National Mortgage Servicing Company Enters Proposed Consent Order Over Loss-Mitigation Activities

The Consumer Financial Protection Bureau (“CFPB”) announced that it and the Federal Trade Commission (FTC) entered into  a Proposed Consent Order with  a national mortgage servicing company over allegations that its loss-mitigation activities violated the Federal Trade Commission Act (“FTCA”), the Consumer Financial Protection Act (“CFPA”), the Fair Debt Collection Practices…

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Military Allotment Payroll Processor Enters Consent Order With CFPB Over Fees

On April 20, the Consumer Financial Protection Bureau (CFPB) announced that it entered a Consent Order with a military payroll processor over allegations that the payroll processor applied hidden monthly fees against funds in servicemembers’ accounts, which were designated to pay creditors. The CFPB found that servicemembers usually contracted with…

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