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.

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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State Auto Dealer Settles Deceptive Advertising Claim

On April 20, 2015, the Tennessee Attorney General announced that it and the Tennessee Division of Consumer Affairs reached a settlement with a state auto dealer over allegations that the auto dealer violated the Tennessee Consumer Protection Act by mailing two false advertisements to consumers. The allegedly false advertisements purported…

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Military Financial Services Provider Settles With CFPB for Alleged Failure to Disclose Fees

On April 20, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced that it entered a settlement with a Kentucky-based financial services provider over claims that the company charged excessive fees for the payroll deductions of military servicemen, and that it failed to disclose these fees to consumers. The copany allegedly…

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Tax-Refund Lender Settles Predatory Lending Claims Brought By CFPB

On April 14, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced that it reached a settlement with a New Mexico-based tax-refund lender over claims that the lender steered borrowers to excessively costly products, failed to accurately disclose the APR for loans, and failed to notify the availability of refunds.  The CFPB alleged in…

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California Mortgage Lender Settles With CFPB for Allegedly Deceptive Advertising Practices

On April 9, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced a settlement with a California-based mortgage lender over claims that the lender engaged in deceptive advertising practices. The company allegedly mailed advertisements bearing the logos of the Department of Veterans Affairs and the Federal Housing Administration, ostensibly to give…

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Washington AG Sues Student Loan Debt Adjusting Company for Illegal Fees

On April 7, 2015, the Washington State Attorney General Office announced that it filed suit against a California-based student-loan debt-adjustment company, alleging that the company charged illegal fees in violation of Washington’s Consumer Protection Act and the state’s Debt Adjusting Act. According to the complaint, the company allegedly marketed services…

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New York State Judge Holds No Cause of Action for Failing to File Foreclosure Papers in Court

New York Supreme Court Justice John Michalski dismissed a suit brought by the New York Attorney General against HSBC Bank USA, alleging that HSBC failed to file Requests for Judicial Intervention along with their proof of service in foreclosure actions. In New York, Requests for Judicial Intervention entitle homeowners facing…

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