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.

Mississippi Attorney General Reaches Settlement with Auto Lender to Resolve Claims of Deceptive Practices

​On July 21, 2021, the Mississippi Attorney General announced that it had reached a settlement with a national auto lender to resolve claims that the company placed borrowers into auto loans with a high probability of default.  The Attorney General also alleged that the auto lender engaged in aggressive collection practices in violation…

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CFPB Reaches Consent Agreement with Fintech Company Concerning Facilitation of Loans to Consumers Without Their Authorization

CFPB sign

On July 12, 2021 the Consumer Financial Protection Bureau (CFPB) announced that a consent order had been reached with an Atlanta-based non-bank lending company that would require the company to cancel up to $9 million in loans for consumers, resolving allegations that the fintech company violated the Consumer Financial Protection Act (CFPA) by originating and servicing unauthorized loans….

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NY DFS Enters Consent Orders with Two Indirect Auto Lenders for a Combined $625,000 in Civil Penalties

On June 29, 2021, the New York Department of Financial Services (DFS) announced it entered consent orders with two New York-based banks for allegedly violating New York’s fair lending laws in the course of providing auto loans. The banks will pay $275,000 and $350,000 in penalties to the state to resolve the allegations. DFS alleged that the…

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CFPB Files Complaint and Proposed Order Against Debt Relief and Credit Repair Company, Seeking Permanent Ban

On June 29, 2021, the Consumer Financial Protection Bureau (CFPB) announced it filed a proposed stipulated order with a Maryland-based debt relief and credit repair company concerning alleged violations of the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act (CFPA). If accepted by the court, the order would ban the company and its…

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Washington AG Reaches Settlement with Debt Collector to Resolve Lawsuit Concerning Its Alleged Failure to Offer Garnishment Exemptions and Collection of Unlawful Fees

On June 8, 2020 the Washington Attorney General’s office (Washington AG) announced that a consent order had been reached with a Colorado-based debt collection agency that would require the agency to pay $475,000 to approximately 5,000 Washington consumers to resolve a lawsuit originally filed in April 2020 in Washington state…

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Massachusetts AG Reaches Settlement with Bank to Provide Student Loan Debt Relief

On May 28, 2021, Massachusetts Attorney General Maura Healy (Massachusetts​ AG) announced a settlement with a bank, acting as an agent for lenders, which requires the bank to permanently discharge debts and return payments made by certain former students of a regional for-profit university.  The settlement requires the bank to refund over $30,000 in recent loan repayments made by certain Massachusetts borrowers…

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Massachusetts AG Announces Settlement with Auto Lender for Alleged Unfair and Deceptive Acts and Practices

O​n May 27, 2021, the Massachusetts Attorney General’s Office (AG) announced that it had reached a settlement with a subprime auto lender resolving alleged violations of the state’s unfair and deceptive acts and practices law. The Massachusetts AG alleged that the auto lender, in connection with its purchase of auto retail installment sales contracts from…

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Auto Lender Enters Into Consent Order with CFPB

​On May 21, 2021, the Consumer Financial Protection Bureau (CFPB) announced​ that it ​entered into a consent order​ and stipulation with​ a California-based company that services subprime auto loans originated by car dealers.​ According to the consent order and stipulation, the CFPB ​found that the company engaged in unfair acts or practices by charging interest on late payments related to loss damage waiver fees,…

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