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…
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…
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…
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…
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,…
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…
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…
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…
On March 9, 2015, the New York Attorney General announced a settlement with three national credit reporting agencies. The companies allegedly failed to maintain proper procedures for ensuring the accuracy of consumer credit information in violation of the Fair Credit Reporting Act. According to one study, allegedly 26% of consumers…
On March 9, 2015, the New York Department of Financial Services (“NYDFS”) announced that it entered a consent order with a “lead generation” payday lender where the lender agreed to pay a $2.1 million penalty, provide new warnings to consumers, and cease operations in the state. Payday lending is illegal in New York. “Lead…