On March 7, the Federal Trade Commission (FTC) announced that the United States District Court for the Eastern District of Texas entered a stipulated order prohibiting a national debt relief provider from making misleading claims about its debt relief services. The court also entered a $9 million judgment against the defendants, with all but…
On February 17, 2017, the California Department of Business Oversight (California DBO) announced that it had entered in to a $225 million consent order with a national mortgage servicer following an investigation by a third-party auditor into loans serviced by the company in California between January 1, 2012 and June 30, 2015. The servicer had agreed to the audit…
On January 11, 2017, the Federal Trade Commission (FTC) announced that it had agreed to two stipulated orders (available here and here) with individuals who participated in an alleged fraudulent mortgage relief scheme. According to the FTC, the individuals promised consumers “at least $75,000” or complete relief on their mortgages through a “mass joinder lawsuit.” The…
On December 1, 2016, the United States Attorney’s Office for the Southern District of New York, the New York Field Division of the Federal Bureau of Investigation, and the Department of Housing and Urban Development (HUD) announced the unsealing of indictments against five individuals for allegedly participating in a debt-elimination…
On November 10, 2016, the United States Attorney’s Office for the Southern District of New York announced the owner of a debt collection company was sentenced to five years in prison and ordered to pay $3.9 million in restitution to consumers. After a five day trial, the jury found that…
On September 1, 2016, the Federal Trade Commission (FTC) announced it entered into a stipulated order for permanent injunction against a group of regional law firms over allegations the firms violated the Federal Trade Commission Act by providing illegal mortgage modification services. According to the FTC, the firms charged illegal…
On March 18, 2016, the Consumer Financial Protection Bureau (CFPB) announced that a federal district court entered final judgment against a debt relief company over allegations the company charged illegal upfront fees and engaged in other deceptive business tactics. The CFPB filed suit against the company in 2013, alleging violations of the…
On September 15, the Consumer Financial Protection Bureau (CFPB) announced that the U.S. District Court for the Southern District of Florida had issued two preliminary injunctions against affiliated national debt relief providers and their officers stemming from a lawsuit filed by the CFPB alleging that the debt relief providers misrepresented the nature of their…
On Monday, June 29, 2015, the Florida Attorney General and the Federal Trade Commission (“FTC”) obtained an ex parte temporary restraining order from a federal court for the Middle District of Florida to shut down the operations of a Florida corporation operating in violation of the FTC’s Telemarketing Sales Rule. Under the Telemarketing Sales…