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Minnesota AG Reaches Settlement with Student-Loan Debt Relief Company

On November 8, 2023, the Minnesota Attorney General (Minnesota AG) announced that the state had reached a settlement with a California-based student-loan debt-relief provider ​​over miscellaneous state law allegations.  Specifically, the Minnesota AG alleged that the company did not register as a debt settlement services provider ​with the Minnesota Department of Commerce as required by Minn. Stat. § 332B.03.  The…

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FTC Consent Order Results in Permanent Ban for Cash Advance Business Owner

On October 30, 2023, the Federal Trade Commission (FTC) announced that the United States District Court for the Southern District of New York​ (SDNY) granted a permanent injunction containing a lifetime ban for the owner of a small-business lending company​​ for unfair business practices and aggressive debt collection methods. On September 27, 2023, Judge Jed. S. Rakoff of SDNY granted summary…

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CFPB Files Complaint Against Auto Loan Servicer

On August 2, 2023, the CFPB announced that it had filed a complaint against a Georgia-based auto-loan servicer alleging “unfair acts and practices in violation of the Consumer Financial Protection Act of 2010 (CFPA), 12 U.S.C. §§ 5531(a), 5536(a)(1).” The complaint, filed in United States District Court for the Northern District of Georgia,…

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CFPB Reaches $20 Million Consent Order with Lender Over Optional Add-On Products

On May 31, 2023, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with an Indiana-based non-bank installment lender. ​​The consent order alleges that the lender engaged in unfair, deceptive, and abusive acts or practices concerning the “marketing, sales, and financing of optional ancillary products” that it offered. ​Specifically, the…

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DOJ Reaches Settlement Over Bank's Alleged Redlining

On May 31, 2023, the United States Department of Justice (DOJ), announced that it had entered into a settlement with a Philadelphia based bank and trust company over allegations that the bank had engaged in unlawful redlining in the Philadelphia metropolitan area.  In the Complaint, filed contemporaneously with the consent order in U.S. District Court for the…

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Massachusetts AG Settles with Mortgage Servicer for $975,000

​On December 22, 2022, the Massachusetts Attorney General (AG) announced ​a settlement ​with a South Carolina mortgage servicing company ​to resolve allegations that the company violated state mortgage servicing and debt collection laws. ​​​​ ​After an investigation, the AG alle​ged that the servicer did not take “reasonable steps” to help borrowers avoid foreclosures…

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California Department of Financial Protection & Innovation Settles With "Buy Now, Pay Later" Company

On August 3, 2022, the California Department of Financial Protection and Innovation (DFPI) announced ​that it had entered into a consent order with a Florida-based lending company that allegedly made “illegal loans.” Specifically, the consen​t order alleges that the company’s policy of making “buy now, pay later” arrangements for point-of-sale transactions qualified as “loans,” subjecting…

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North Carolina AG Permanently Enjoins Debt Settlement Business

​On May 26, 2022, the North Carolina Attorney General (NC AG) announced that it obtained a default judgment against a California-based debt settlement business, and its proprietor.  The lawsuit, filed on June 25, 2021 in the North Carolina Superior Court for Wake County, alleged that the entity violated North Carolina’s Debt Adjusting Act, N.C. Gen. Stat….

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CFPB and NY AG Reach $4 Million Settlement with Debt Collectors

On May 23, 2022, the Consumer Financial Protection Bureau (CFPB) and the New York Attorney General (NY AG) announced that they have settled a case filed against six New York debt collection companies and affiliated individuals, resolving a one-and-a-half year enforcement action.  The original complaint ​was filed on September 20, 2020 in the U.S. District Court for the Western…

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CFBP and NY AG Sue Global Payment Company

On April 21, 2022, the Consumer Financial Protection Bureau (CFPB) anno​unced ​a joint enforcement action with the New York Attorney General (NY AG) against one of the largest international remittance providers in the United States. The seven-count complaint, filed in U.S. District Court for the Southern District of New York, challenges the Dallas-based company’s remittance…

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FTC Obtains Permanent Injunction Against For-Profit Medical School

FTC

On April 15, 2022, the Federal Trade Commission (FTC) announced that it obtained a permanent injunction against an Illinois-based, offshore, for-profit medical school for deceptive marketing practices. In its complaint ​and stipulated ​order​ filed same-day in the U.S. District Court for the Northern District of Illinois, the FTC alleged that the school violated the Telemarketing Sales Rule (TSR) when…

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Court Enjoins Credit Repair Company From Making Misrepresentations to Consumers

On March 21, 2022, the Department of Justice (DOJ) announced that it obtained a permanent injunction against a credit repair company and its CEO, barring the company from making representations that it can improve consumers’ credit scores.  The injunction was issued by the United States District Court for the Southern District of Texas in relation…

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Credit Union Enters Into Consent Order with U.S. Attorney's Office Over Alleged SCRA Violations

On March 11, 2022, the U.S. Attorney’s Office (USAO) for the Eastern District of Virginia filed a consent order and settlement with a Virginia-based credit union for alleged violations of the Servicemembers Civil Relief Act (SCRA). The lawsuit, filed in U.S. District Court for the Eastern District of Virginia, alleged that the defendant unlawfully charged…

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New York Attorney General Shuts Down Buffalo Debt Collection Firm

On November 23, 2021, the New York Attorney General (“NYAG”) announced an agreement shutting down a Buffalo, NY based debt collection firm that the NYAG alleges violated the Fair Debt Collections Practices Act (“FDCPA”), the Consumer Financial Protection Act (“CFPA”), and various provisions of the New York General Business Laws. …

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