On February 4, 2015, the CFPB announced that it had entered a consent order with a Delaware-based subprime credit card company and servicer concerning allegations that the company made false statements and charged illegal fees for credit cards in violation of the Truth in Lending Act. The company purportedly charged…
On February 3, 2015, the CFPB announced that it had entered a stipulation for an order and final judgment with a Texas-based company that had falsely intimated that its membership card was a credit card. The card was advertised and offered to union workers and charged a membership fee. Purchasers…
On February 2, 2015, the CFPB announced that it had reached a settlement with the ECMC Group and the Zenith Education Group (collectively “ECMC”), two companies that had purchased colleges formerly affiliated with Corinthian Colleges, Inc. ECMC agreed to coordinate $480 million in debt relief for current and former Corinthian…
On January 30, 2015, the FTC announced a settlement with two car title lenders for deceptive advertising in connection with offering consumers 0% car loans. The Commission asserted the lenders deceptively advertised 0% interest rates without disclosing material loan conditions necessary for borrowers to qualify for the interest rate, and…
On January 30, 2015, the Arkansas Attorney General announced that Pulaski County Circuit Judge Chris Piazza granted its petition to enforce a civil investigative demand against a Texas credit repair company, related to its investigation into whether the company’s representations, advertising, and pricing structures violated the Arkansas Deceptive Trade Practices…
On January 29, 2015, a state bank entered into a consent order with the Federal Deposit Insurance Corporation (“FDIC”), agreeing to pay a civil monetary penalty of $5,400 related to allegations that the bank had violated section 102(f)(1) of the Flood Disaster Protection Act of 1973, 42 U.S.C. § 4012a(f)(1),…
On January 23, 2015, the California Department of Business Oversight (“CBO”) announced that it reached a settlement with a national mortgage lender over allegations that the lender failed to comply with state recordkeeping requirements to assess compliance with state mortgage lending laws. The CBO claims that the mortgage lender repeatedly…
On January 22, 2015, the CFPB and the Maryland Attorney General announced a settlement with two national banks related to an investigation into allegations that the loan officers at the banks steered customers to a title company in exchange for allegedly illegal kickbacks. The Complaint alleged that the banks and…
On January 21, 2015, the FTC announced that it had filed a complaint in the U.S. District Court for the Eastern District of Texas against Commercial Recover Systems, Inc. (CRS), a debt collector, for illegally threatening consumers with false claims and threatening consumers that they would be faced with legal…
On January 19, 2015, the New York Attorney General announced a settlement with a regional bank for possible discriminatory lending practices. The settlement was reached after the Attorney General investigated the bank for categorically excluding borrowers who lived in certain minority neighborhoods from obtaining loans, designating loans from minority areas…