On November 8, 2021 the Federal Trade Commission (FTC) announced that it entered into a stipulated order with a payment processor, resolving allegations that the payment processor violated Section 5 of the Federal Trade Commission Act (FTC Act) and the Telemarketing Sales Rule (TSR) by facilitating payments related to an unlawful student…
On November 5, 2021, the Illinois Attorney General’s Office (Illinois AG) announced a settlement with three online payday lending lead generators to resolve allegations that the companies violated Illinois state lending laws. The Illinois AG alleged that the lead generators violated state lending laws by generating payday loan leads without a license…
On October 21, 2021, the Consumer Financial Protection Bureau (CFPB) announced that it has issued orders to collect information about the business plans and practices of multiple large technology companies operating payment systems in the United States. Notably, these orders were issued pursuant to the CFPB’s rulemaking authority under Dodd-Frank Section 1022, rather than its…
On October 22, 2021, the Consumer Finance Protection Bureau (CFPB) announced that the CFPB, Department of Justice (DOJ) and Office of the Comptroller of the Currency (OCC) collectively reached a joint settlement with a national bank that resolved allegations of mortgage lending discrimination in the Memphis metropolitan area in violation of the Fair Housing Act (FHA),…
On October 19, 2021, the CFPB announced that it entered a consent order against a Florida-based financial services company, resolving claims that the company violated the Unfair, Deceptive, Abusive Acts and Practices (UDAAP) provisions of the Consumer Financial Protection Act (CFPA), 12 U.S.C. § 5536(a) by charging unlawful fees, and the Electronic Funds Transfer Act,…
On October 8, 2021, the Consumer Financial Protection Bureau (“CFPB”) announced the filing of a complaint and proposed consent order against a reverse mortgage lender in the U.S. District Court for the Central District of California. In the complaint, the CFPB alleged the lender engaged in deceptive advertising practices in violation of the Consumer Financial…
On September 30, 2021, the Department of Justice (DOJ) announced that it reached a settlement with an auto lender, resolving allegations that the lender violated the Servicemembers Civil Relief Act (SCRA). Following an investigation which began in 2019, the DOJ filed a complaint that same day in the United States District Court for the Northern…
On September 30, 2021, the Minnesota Attorney General (“Minnesota AG”) announced that a federal bankruptcy court had approved $23.6 million in student debt relief and $15.8 million in restitution for students of two for-profit universities that allegedly engaged in consumer fraud and illegal lending practices. The settlement, originally announced in March 2021, resolved allegations that the universities misled students…
On September 29, 2021, the Department of Justice (DOJ) announced that it reached a settlement with a California-based auto lender, resolving allegations that the lender violated the Servicemembers Civil Relief Act (SCRA). In a simultaneously-filed complaint filed in the United States District Court for the Central District of California, the DOJ…
On September 27, 2021, the Federal Trade Commission (FTC) announced a settlement with an Atlanta-based debt collection company and its owners that would ban them from the debt collection industry. The FTC had originally filed suit in 2020, after which the court issued an ex parte temporary restraining order prohibiting the company from doing business. The complaint, filed in September 2020, alleged violations of Section 5(a)…