Goodwin’s Consumer Finance Insights (CFI) monitors, reports, and analyzes the latest legal news, activity, and developments impacting the consumer finance industry. Consumer financial services companies—whether banks, fintechs, nonbank and alternative lenders, payment providers, or industry vendors or service providers, like digital advertisers and lead generators—face a constantly shifting and maturing regulatory and legal landscape. Growing from the Financial Crisis, today more than any time in history the consumer finance industry must confront a robust and growing body of industry legislation and regulation, all while under the microscope of sophisticated enforcers, like the Consumer Financial Protection Bureau (CFPB), Federal Trade Commission (FTC), and state regulators and attorneys general. It is critical for in-house and outside corporate counsel, compliance departments, and business executives to stay informed and aware of these developments to navigate institutional, reputational, and legal risks. Goodwin’s CFI is a singular source of the most recent industry news and latest enforcement activity for you to leverage. Here, you will find links to original enforcement documents, enforcement activity statistics, and reports, analysis, and commentary from Goodwin’s leading Consumer Financial Services Litigation and Enforcement practitioners.

T-Mobile Invokes California Public Utilities Law to Defeat TCPA Motion to Compel

An Illinois federal district court held on March 20, 2015 that California law protects T-Mobile from having to turn over the names and addresses of thousands of its California customers without their consent in response to a third-party subpoena in a nationwide class action. The case, Birchmeier v. Caribbean Cruise Line,…

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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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Banks Beat Pennsylvania Payday Lender Class Action

In November 2014, we reported that class action lawsuits were being filed across the country by consumers against large banks regarding their involvement with short term loans.  These actions allege that lenders were engaging in unlawful practices relating to online short-term, small dollar – or “payday” – loans, and were…

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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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Debt Collection Diversion Company Settles With CFPB for Allegedly Illegal Debt Collection Practices

On March 30, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced that a California-based debt collection agency agreed to settle claims over alleged illegal and deceptive collection practices in violation of the Consumer Financial Protection Act (“CFPA”) and the Fair Debt Collection Practices Act (“FDCPA”). The CFPB alleged in its complaint…

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MA AG Obtains $1.9 Million Judgment against Local Company for Predatory Rescue Foreclosure Practices

On March 26, 2015, the Massachusetts Attorney General announced that on March 17, a state judge ordered a local financial and legal services company to pay more than $1.9 million for alleged misrepresentations and the unauthorized practice of law. The complaint alleged that the company misrepresented to customers the services…

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Massachusetts AG Obtains Judgment Against Predatory Foreclosure Rescue and Legal Services Company

On March 26, 2015, the Massachusetts Attorney General announced that it obtained a judgment of nearly $1.9 million against a Massachusetts-based financial and legal services company on the ground that the company engaged in unfair and deceptive acts and practices. According to the lawsuit, the company had tageted consumers facing…

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Should Companies Trust New Cyber Security Bill En Route to Passage in Senate?

On March 12, 2015, the Senate Intelligence Committee took an important step in advancing a comprehensive bill titled the Cybersecurity Information Sharing Act of 2015 (“CISA”) aimed at bolstering U.S. companies and the federal government’s cyber security protections.  But some privacy watchdogs and other government officials are openly wondering whether…

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Director Cordray Conducts First Ever CFPB Enforcement Appeal Hearing

On March 9, 2015, Consumer Financial Protection Bureau (CFPB) Director Richard Cordray held oral arguments in the first appeal of a CFPB administrative enforcement action.  Both counsel for the CFPB and Respondents PHH Mortgage Corporation and Atrium Insurance Corporation appealed to Cordray from the Administrative Law Judge’s (ALJ) Recommended Decision,…

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CFPB Finds Arbitration Agreements Limit Consumer Redress

On March 10, 2015, the Consumer Financial Protection Bureau (CFPB) released its Arbitration Study, which concludes that arbitration agreements in contracts associated with consumer financial products constrain consumers’ ability to assert their rights if a dispute arises.  The study, which the CFPB was directed to carry out under Section 1028(a)…

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CFPB Director Faces Tough Questions Before House Committee on Financial Services

On March 3, 2015 CFPB Director Richard Cordray appeared before the House Committee on Financial Services to deliver testimony regarding the Bureau’s work.  Director Cordray spent much of his semiannual address touting the Bureau’s efforts in the mortgage space.  In his written statement, Director Cordray commented on the Bureau’s Qualified…

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Mortgage Lender Agrees to Fees and Injunctive Relief in Settlement Following State Examination on Reverse Mortgage Lending

On March 12, 2015, the Massachusetts Division of Banks entered into a consent order with a mortgage lender following a state investigation that determined that the mortgage lender was in substantial non-compliance with applicable state and federal statutes, rules, and regulations regarding its mortgage lending and determination and documentation of…

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Regional Bank Settles Claims for $1.225 Million that it Ignored Fraudulent Transactions Committed by Third-Party Payment Processors

On March 12, 2015, the Justice Department announced a settlement with a regional bank over allegations that the bank violated FIRREA by permitting an intermediary third-party payment processor to process fraudulent payments through the bank. The payment processor opened an account at the bank for the purpose of processing electronic…

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Regional Bank Settles Criminal and Civil Claims for $4.9 Million that it Ignored Fraudulent Transactions Committed by Third-Party Payment Processors

On March 10, 2015, the Justice Department announced a settlement with a regional bank over allegations that the bank permitted a third-party payment processor to process fraudulent payments through the bank. As part of the settlement, the DOJ filed a criminal information alleging a felony violation of the Bank Secrecy…

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