News & Analysis as of

Enforcement Actions Settlement Consumer Financial Products

Ballard Spahr LLP

Federal Judge rejects request to release ESSA Bank from redlining settlement

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A federal judge has rejected the Trump Administration’s request to release from court supervision a bank that had been accused of discriminatory lending....more

Ballard Spahr LLP

CFPB reaches settlement with FirstCash in connection with alleged MLA Violations

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The CFPB has reached a settlement in its lawsuit against FirstCash, Inc. and its 19 subsidiaries alleging violations of the Military Lending Act (MLA). The parties have jointly filed a stipulated final judgment and proposed...more

Troutman Pepper Locke

Townstone Case Twist: Federal District Court Stands Firm on Redlining Settlement Amid CFPB Controversy

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On June 12, the U.S. District Court for the Northern District of Illinois denied the joint motion by the Consumer Financial Protection Bureau (CFPB or Bureau) and Townstone Financial, Inc. to vacate the Stipulated Final...more

Ballard Spahr LLP

DOJ Seeks Early Termination of Lakeland Bank Redlining Consent Order

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The U.S. Department of Justice (DOJ) has filed a motion with a federal district court to terminate early the September 2022 consent order with Lakeland Bank (Lakeland) that settled allegations of redlining under the Fair...more

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FTC takes action against student loan debt relief companies

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The FTC has recently taken action against two student loan debt relief companies and their owners....more

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Trustmark Redlining Consent Order Terminated

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A federal district court recently granted the unopposed motion of the Department of Justice (DOJ) and the Consumer Financial Protection Bureau (CFPB) to terminate their October 2021 consent order with Trustmark National Bank...more

Sheppard Mullin Richter & Hampton LLP

CFPB Dismisses Two Actions Against Student Loan Trusts and Subprime Auto Lender 

The CFPB recently dropped two more lawsuits it brought under the Chopra administration—one involving a student loan securitization trust and the other regarding a subprime auto finance company. Both lawsuits included...more

Hudson Cook, LLP

The State Consumer Protection Beat: State AGs Kick Off 2025 with a String of Actions and Support for the CFPB

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The first two months of 2025 were filled with numerous consumer protection actions by state AGs against vehicle dealers and players in the mortgage space, among others. ...more

Ballard Spahr LLP

CFPB seeking to reverse Townstone settlement, saying bureau ‘abused its power’

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Saying that the bureau under the Biden Administration abused its power, the CFPB is seeking to reverse its settlement with Townstone Financial....more

Sheppard Mullin Richter & Hampton LLP

California DFPI Reaches Settlement with Lender Over Crypto-Backed Loans

On December 23, 2024, the California Department of Financial Protection and Innovation (DFPI) announced a consent order with a lender to resolve its investigation into the company’s crypto-backed lending program, which the...more

Orrick, Herrington & Sutcliffe LLP

New York Attorney General secures $1B settlement with merchant cash advance lenders

On January 16, the New York State Attorney General (AG) filed a consent order in the Supreme Court of the State of New York involving lending companies and its officers (the respondents) accused of predatory lending of...more

Troutman Pepper Locke

Washington AG Brown Leashes $3.75M Settlement With Puppyland Over Deceptive Advertising and Sales Practices

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Washington Attorney General (AG) Nick Brown secured a $3.75 million settlement with Puppyland, known for selling purebred and mixed breed puppies, over unlawful advertising and sales practices. The settlement resolves a...more

Cozen O'Connor

Edward Jones Settles Multistate Investigation into Commissions and Supervisory Procedures

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New Jersey AG Matthew Platkin has settled with Edward D. Jones & Co., L.P., as part of a multistate investigation that included 14 states and the North American Securities Administrators Association, over allegations that the...more

Ballard Spahr LLP

CFPB seeks approval of Townstone Financial order

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Following lengthy litigation, the CFPB is attempting to close the books on its case against Townstone Financial alleging discriminatory lending practices and redlining African American neighborhoods in Chicago....more

Troutman Pepper Locke

CFPB Reaches Settlement with Townstone Financial, Inc.

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In a significant development, the Consumer Financial Protection Bureau (CFPB or Bureau) has finally reached a settlement with Townstone Financial, Inc. (Townstone) in the first redlining case brought against a nonbank...more

Troutman Pepper Locke

DOJ and CFPB Announce Landmark Redlining Settlement With Fairway Independent Mortgage Corporation

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On October 15, the Consumer Financial Protection Bureau (CFPB or Bureau) and the Department of Justice (DOJ) announced that they reached a settlement with Fairway Independent Mortgage Corporation (Fairway). This settlement...more

Hudson Cook, LLP

Nonbank Student Loan Servicer Agrees to a CFPB-Imposed Ban and to Pay $120 Million

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After more than seven years of litigation, on September 12, 2024, the CFPB filed the Stipulated Order reflecting its settlement with the Company over alleged violations of the CFPA, FCRA, and FDCPA....more

Ballard Spahr LLP

CFPB, Credit Repair Cloud Reach Deal Over Illegal Marketing Allegations

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The CFPB and Credit Repair Cloud, have reached agreement over allegations that the firm helped other credit repair businesses charge illegal fees to consumers....more

Cadwalader, Wickersham & Taft LLP

Beware of the Law of Unintended Consequences

A recent study, Government Litigation Risk and the Decline in Low-Income Mortgage Lending, provides further evidence that the law of unintended consequences reigns supreme, particularly in the realm of public policy. The...more

Troutman Pepper Locke

New York AG Sues Yellowstone Capital Over Alleged “Fraudulent Loans” Targeting Small Businesses

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New York Attorney General (AG) Letitia James filed a lawsuit on March 5 against Yellowstone Capital, its founder David Glass, and a network of 30 other affiliated companies and individuals. James alleges that Yellowstone...more

Hudson Cook, LLP

CFPB Settles Decade-Long Case Against Foreclosure Relief Company and Four Attorneys for $12 million

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On February 8, 2024, after nearly a decade of litigation, the CFPB announced a final settlement for a total of $12 million with a Foreclosure Relief Company and four individual attorneys. The settlement resolves litigation...more

Sheppard Mullin Richter & Hampton LLP

FTC Announces Settlement of Junk Fee Enforcement Action

On February 6, the FTC announced that it had reached proposed settlements with several defendants in a pending action where the parties were accused of operating a fraudulent student debt relief scheme and collecting...more

Hudson Cook, LLP

CFPB Bites of the Month - 2023 Annual Review - Biggest Fines and Penalties

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In this article, we share a list of the top 10 biggest fines and penalties from our monthly bites for 2023....more

Hudson Cook, LLP

CFPB Bites of the Month - 2023 Annual Review - Small Dollar Lending, Lease-to-Own, and Alternative Financial Services

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In this article, we share a timeline of our monthly "bites" for 2023 applicable to the small dollar lending, lease-to-own, and alternative financial services industries. ...more

Hudson Cook, LLP

CFPB Bites of the Month - 2023 Annual Review - Student Lending

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In this article, we share a timeline of our monthly "bites" for 2023 applicable to student lending along with some information related to financial products and services offered to students....more

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