Tagged as: Debt services

National Debt Relief Provider Reaches $9 Million Settlement with FTC for Deceptive Solicitations

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…

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Mortgage Servicer Enters in to $225 Million Consent Order with California DBO

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…

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FTC Secures $19.4 Million in Judgments Over Mortgage Relief Scheme

FTC

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…

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CFPB Obtains Final Judgment in Illegal Fees Case Against Debt Relief Company

CFPB sign

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…

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CFPB Obtains Preliminary Injunction Against Debt Relief Providers

CFPB sign

​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…

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