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California DFPI Launches Investigation Into Four Student-Loan Debt-Relief Companies

On February 4, 2021, the California Department of Financial Protection and Innovation (DFPI) launched an investigation into whether four California-based student-loan debt-relief companies violated the new California Consumer...more

CFPB Continues to Target Misleading VA Mortgage Loan Advertisements

On September 14, 2020, the Consumer Financial Protection Bureau (CFPB) announced a settlement in its eighth case arising out of the CFPB’s “sweep of investigations” of mortgage companies allegedly mailing deceptive...more

U.S. Paycheck Protection Program Lenders: Risks of False Claims Act Enforcement Actions

Congress has recently updated the Paycheck Protection Program (PPP) to stabilize the economy in response to the troubling economic impact of the COVID-19 pandemic. Lenders should be aware that the federal government’s efforts...more

Financial Services Weekly News: Banking Agencies Finalize CECL Policy Statement

In This Issue. Federal banking agencies finalized an Interagency Policy Statement on Allowance for Credit Losses, which is intended to promote consistency in the interpretation and application of the current expected credit...more

DOJ Settles SCRA Suit Against CA-Based Subprime Auto Lender

On March 6, the U.S. Department of Justice (DOJ) announced that it had entered into a consent order with a California-based subprime auto lender and its affiliate. The order brings an end to a lawsuit filed by the DOJ in...more

CFPB Enters Into $15.5 Million Consent Order with Bank Over Stop Payment and Error Resolution Practices

On January 3, 2018, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a $15.5 million consent order with a federally-chartered savings association bank. The consent order resolves allegations...more

FTC Settles Claims Against Student Loan Debt Relief Company for Over $17.7 Million

On May 31, the Federal Trade Commission (FTC) announced that it settled claims against a student loan debt relief company as part of a coordinated federal-state enforcement initiative to target deceptive student loan debt...more

FTC Settles Claims Against Student Loan Debt Relief Company for Over $9 Million

On May 31, the Federal Trade Commission (FTC) announced that it settled claims against a loan debt relief company in connection with its coordinated federal-state enforcement initiative to target deceptive student loan debt...more

CFPB and OCC Settle with National Bank for $1 Billion Over Auto and Mortgage Lending Practices

On April 20, 2018, the Consumer Financial Protection Bureau (CFPB)? and Office of the Comptroller of the Currency (OCC) each announced settlements totaling $1 billion with a national bank resulting from a coordinated action...more

NY AG Moves to Compel Debt Collector to Respond to Discovery Requests

On January 17, the New York Attorney General (AG) filed a motion to compel a debt collection company and its owner to produce financial documents, business records, and other documents in a lawsuit alleging that the...more

Pennsylvania AG Files Suit Against Nationwide Student Loan Provider and Servicer

On October 5, 2017, the Pennsylvania Attorney General’s Office (AG) announced that it had filed suit against a federal student loan provider and servicer (and its subsidiary) in the U.S. District Court for the Middle District...more

District Court Rejects Servicer’s Argument that CFPB is Unconstitutional

On August 4, 2017, the United States District Court for the Middle District of Pennsylvania denied a student loan servicer’s motion to dismiss claims brought against it by the Consumer Financial Protection Bureau (CFPB),...more

CFPB Files Complaint Against Ohio Debt Collection Law Firm Over Misrepresentations

On April 17, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it had filed a complaint in the U.S. District Court for the Northern District of Ohio against an Ohio-based debt collection law firm, alleging...more

Federal Banking Regulators Assess $65 Million Penalty Against Default Management Company

On January 24, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve, and the Office of the Comptroller of the Currency announced a $65 million fine assessed against a default management...more

FTC and Florida AG Ban Student Loan Debt Relief Providers

On January 24, the Federal Trade Commission (FTC) and the Florida Attorney General’s Office announced a settlement with student loan debt relief providers alleged to have participated in a student loan debt relief scheme,...more

CFPB Settles RESPA Claims with Mortgage Servicer for $20 Million

On January 23, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a mortgage servicer, resolving allegations that the servicer violated the Real Estate Settlement Procedures...more

CFPB Secures $8.8 Million Consent Order Against Mortgage Servicer

On January 23, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a mortgage servicer, resolving alleged violations of the Real Estate Settlement Procedures Act (RESPA), the...more

DOJ Settles Mortgage Discrimination Lawsuit Against National Bank for $54 Million

On January 20, the U.S. Attorney’s Office for the Southern District of New York (USAO) announced that it had settled a recently-filed lawsuit against a national bank, resolving allegations of mortgage discrimination. As...more

National Mortgage Lender Settles False Claims Act Allegations for $48 Million

On December 28, the U.S. Department of Justice (DOJ) announced a $48 million settlement with a national mortgage lender, resolving allegations that the lender violated the False Claims Act by underwriting and endorsing...more

DOJ Settles with Ohio Banks Over Alleged Lending Discrimination

On December 28, the U.S. Department of Justice (DOJ) announced that it filed a complaint against, and entered a consent order with, two Ohio-based banks, resolving allegations that the banks had violated the Fair Housing Act...more

CFPB Files Suit Against Pawnbroker for TILA Violations

On November 3, the Consumer Financial Protection Bureau (CFPB) announced that it filed suit against a Virginia pawnbroker, alleging that the pawnbroker violated the Truth in Lending Act (TILA) and Consumer Financial...more

Q2 2016 Sees Increased Personal and Student Lending Enforcement

For the second quarter of 2016, Consumer Enforcement Watch tracked 46 enforcement actions taken against consumer finance providers. This represents a slight decrease from the 50 enforcement actions that were tracked last...more

NY AG Secures $1.6 Million Settlement For Alleged Mortgage Relief Scheme

On November 2, the New York Attorney General (AG) announced a $1.6 million settlement with a debt settlement company and its principal, resolving allegations that the company violated New York’s deceptive and unlawful...more

CFPB and NY AG File Joint Lawsuit Against Debt Collectors

On November 2, the Consumer Financial Protection Bureau (CFPB) and New York Attorney General (AG) announced the filing of a complaint in the United States District Court for the Western District of New York against...more

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