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.

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,…

Read More

FTC Settles Claims with Student Loan Debt Relief Companies

Piggy Bank with a Graduation Cap

On May 17, 2021, the Federal Trade Commission (FTC) announced​ a settlement​ with several student loan debt relief companies and their respective owners.  The settlement stems from a complaint filed in 2019, in which the FTC alleged the companies charged illegal upfront fees and led consumers to believe the fees​ were going towards consumers’ student loans in violation of Sections…

Read More

CFPB and Debt Settlement Company Agree to Stipulated Final Judgment and Order

CFPB sign

​On May 17, 2021, the Consumer Financial Protection Bureau (CFPB) announced that it has entered​ into a stipulated judgment​ and order​ to resolve a civil action that it previously filed against a debt settlement company in the U.S. District Court for the District of Massachusetts on December 1, 2020, as previously reported he​​re. ​The CFPB initially filed suit against the debt settlement company…

Read More

FDIC Announces $1.8 Million Settlement with Oregon-Based Bank

​On May 10, 2021, the Federal Deposit Insurance Corporation (FDIC) announced​ a settlement with an Oregon-based bank concerning the bank’s alleged violations of Section 5 of the Federal Trade Commission Act (FTC Act), 15 U.S.C. § 45(a)(1).  Under the settlement, the bank stipulated to the issuance of an order​ to pay a civil money penalty of $1.8 million. The FDIC…

Read More

California Settles with Online School for Allegedly Deceptive Financing Practices

On April 26, 2021, the California Department of Financial Protection and Innovation (DFPI) announced that it had entered into a settlement agreement with an online coding school, resolving allegations that the school engaged in deceptive acts and practices in violation of California’s new Consumer Financial Protection Law (CCFPL). The school offers its…

Read More

FTC Settles FCRA Claims With Home Security Company for $20 Million

FTC

On April 29, 2021, the Federal Trade Commission (“FTC”) announced that it had reached a settlement with a Utah-based home security company to resolve allegations that the company misused consumer credit reports when determining whether prospective customers qualified for financing to purchase the company’s products and services. In a complaint filed by the Department of…

Read More

Indiana AG Secures $1.3 Million Default Judgment Against Illinois-based Debt Collector

On Ap​ril 14, 2021, the Indiana Attorney General (Indiana AG) announced that his office obtained a default judgment against an Illinois-based debt collection agency and the agency’s owner. The original complaint filed by the Indiana AG alleged the agency violated Indiana’s Deceptive Consumer Sales Act by improperly threatening borrowers with legal action, such as liens…

Read More