News & Analysis as of

Unfair or Deceptive Trade Practices Enforcement Actions Loans

Orrick, Herrington & Sutcliffe LLP

CFPB seeks withdrawal from auto finance suit

On April 24, the CFPB filed a memorandum in support of a consent motion to withdraw as a plaintiff in its enforcement action in the U.S. District Court for the Southern District of New York. The case involves the CFPB and the...more

Sheppard Mullin Richter & Hampton LLP

Ohio AG Sues Mortgage Lender for Illegal Broker Steering Scheme

On April 17, Ohio Attorney General Dave Yost announced that the state has filed a lawsuit against a wholesale mortgage lender, alleging that the company engaged in a statewide scheme to mislead borrowers and inflate mortgage...more

Orrick, Herrington & Sutcliffe LLP

FTC acts against finance app for alleged deceptive cash advance practices

On March 27, the FTC announced an enforcement action resulting in a stipulated order from the U.S. SDNY regarding a cash advance company’s alleged violations of Section 5(a) of the FTC Act and the Restore Online Shoppers’...more

Orrick, Herrington & Sutcliffe LLP

CFPB voluntarily dismisses enforcement action with prejudice

On February 21, the CFPB voluntarily dismissed its case against an online lending platform, ending a suit filed in May 2024. As previously covered by InfoBytes, the CFPB sued the platform last spring, alleging it violated the...more

Latham & Watkins LLP

NY Attorney General Secures $1 Billion-Plus Judgment for Illegal Loans Misrepresented as Merchant Cash Advances

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On January 22, 2025, New York Attorney General (NYAG) Letitia James announced a judgment and settlement against cash advance provider Yellowstone Capital, its officers, and two dozen affiliates (Yellowstone) for more than $1...more

Ballard Spahr LLP

DC Attorney General files suit against app-based lender EarnIn

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The Attorney General for the District of Columbia has filed suit against ActiveHours Inc., doing business as EarnIn, alleging that the app-based lender deceptively marketed and provided illegal high-interest loans to more...more

Troutman Pepper Locke

Troutman Pepper Weekly Consumer Financial Services Newsletter - November 2024 # 3

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To keep you informed of recent activities, below are several of the most significant federal and state events that have influenced the Consumer Financial Services industry over the past week...more

Troutman Pepper Locke

CFPB Files Lawsuit Against SoLo Funds for Alleged Deceptive Lending Practices

Troutman Pepper Locke on

Last week, the Consumer Financial Protection Bureau (CFPB or Bureau) filed a complaint against SoLo Funds, Inc., a fintech company operating a small-dollar, short-term lending platform. The CFPB alleges that SoLo Funds...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

Troutman Pepper Locke

DC OAG Resolves Alleged Usury and Deceptive Acts Violations With Community Lending Platform

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On May 10, SoLo Funds, Inc. (Solo), one of the largest community lending platforms in the United States, entered into a settlement with the District of Columbia attorney general (OAG). The settlement resolves claims that the...more

Orrick, Herrington & Sutcliffe LLP

Senators ask FTC, CFPB to investigate deceptive listing agreements

In December, Senate Banking Committee Chairman Sherrod Brown (D-OH), along with Senators Tina Smith (D-MN) and Ron Wyden (D-OR) sent a letter to the FTC and the CFPB requesting a review of a Florida-based real estate...more

Sheppard Mullin Richter & Hampton LLP

CFPB Blog: Stop Overcharging for Auto Loan Add-on Products

On May 2, the CFPB published a blog post demonstrating its commitment to “a fair, transparent, and competitive auto lending market” by calling attention to add-on products for which auto dealers and finance companies “often...more

Ballard Spahr LLP

CFPB continues to push the envelope in announcing settlement with brokers of pension advances

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The CFPB announced on August 14, 2019 that, subject to the approval of the Federal District Court for the Eastern District of Arkansas, the Bureau and the Arkansas Attorney General have entered into a proposed settlement with...more

Ballard Spahr LLP

CFPB/NY AG lawsuit against RD Legal Funding may signal greater scrutiny of non-loan financial products such as merchant cash...

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The CFPB and the New York Attorney General this week filed an action against RD Legal Funding, LLC, two of its affiliates, and their principal (collectively, “RD”), alleging that a litigation settlement advance product...more

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