On January 13, thirty-nine state Attorneys General announced that they had reached a settlement with a national student loan servicer. The settlement resolves allegations that, since 2009, the servicer had been steering borrowers into higher-cost, longer-term forbearance arrangements. The Attorneys General alleged the practices
Consumer Finance Enforcement Watch
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CFPB Files Complaint Against New York-Based Debt Collectors
By Viona Harris
On January 10, the Consumer Financial Protection Bureau (CFPB) announced that it filed a complaint against three New York-based debt collection companies and their owners. The CFPB alleged the companies sold debts to collection companies that used unlawful collection tactics.…
FTC Settles With Lead Generator Over Alleged FTC Act and FCRA Violations
By Viona Harris
On January 7, the Federal Trade Commission (FTC) announced that it had agreed to a settlement with a company that collected and generated leads for financial services products. In its simultaneously-filed complaint in the U.S. District court for the Central District…
CFPB Reaches $40.6 Million Agreement With Lender to Cease Operations
On December 21, 2021, the Consumer Financial Protection Bureau (CFPB) announced that it reached an agreement with a California-based fintech company that would require the company to cease “(1) making new loans; (2) collecting on outstanding loans to harmed consumers; (3) selling consumer information;…
CFPB Resolves Alleged UDAAP Claims Against Maryland-Based Structured Settlement Buyer
By Viona Harris
On December 17, 2021, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a proposed settlement with a Maryland company that offers lump sum payouts to consumers with structured settlements. The settlement resolves a 2016 complaint filed by the…
California DFPI Reaches Agreement with Lender to Temporarily Halt Operations
On December 14, 2021, the California Department of Financial Protection and Innovation (DPFI) announced that it entered what it described as a “novel” consent order with a Los Angeles-based automobile title loan lender prohibiting the company from marketing or servicing title loans…
FTC Announces Settlement with Alleged Phantom Debt Collectors
By Jackie Odum
On December 13, 2021, the Federal Trade Commission (FTC) announced that it reached a settlement with a group of South Carolina-based debt collection companies to resolve allegations that the companies violated the Federal Trade Commission Act (FTC Act) and the…
District of Columbia AG Reaches $2 Million Settlement With Online Lender
On November 30, the District of Columbia Attorney General’s Office (DC AG) announced a settlement with an online lender targeting consumers with below-average credit, under which the lender agreed to pay $1.5 million in refunds to consumers and $250,000 to the District, and…
CFPB Files Complaint Against Pawnshop Lenders for Alleged Military Lending Act Violations
By Viona Harris
FTC Reaches $500,000 Settlement with Payment Processor for Its Role in Alleged Student Loan Debt Relief Scheme
By Viona Harris
On November 8, 2021 the Federal Trade Commission (FTC) announced that it entered into a stipulated order with a payment processor, resolving allegations that the payment processor violated Section 5 of the Federal Trade Commission Act (FTC Act) and the…