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Goodwin Releases Annual Review of Key Developments Within the Consumer Financial Services Industry

Goodwin announces the release of its third annual Consumer Finance Year in Review, an in-depth report that analyzes the principal litigation, enforcement actions and regulations that have impacted the consumer finance industry over the prior year. This report synthesizes Goodwin’s consumer finance coverage from 2017 and offers predictions and insights…

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Federal Reserve Assesses a Combined $35.1 Million in Civil Money Penalties Against 5 Mortgage Servicers Over Mortgage Servicing Practices

On January 12, 2018, the Federal Reserve Board (FRB) announced the assessment of civil money penalties and consent orders against five national banking organizations over mortgage servicing deficiencies, resulting in a total monetary settlem​ent of $35.1 million. In 2011 and 2012, the FRB initiated enforcement actions against ten firms, including the five against…

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CFPB Settles With National Bank Over Student Lending Practices for $6.5 Million

​On November 21, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a national bank, resolving allegations over the bank’s allegedly harmful student loan servicing practices and requiring it to pay millions in consumer relief and civil penalties. ​ According to the CFPB, the bank engaged…

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CFPB Files Suit Against National Debt-Settlement Services Provider For Allegedly Misleading Consumers

On November 8, 2017, the Consumer Financial Protection Bureau (“CFPB”) announced it filed suit in federal court in California against a national debt-settlement services provider and its CEO based on alleged violations of the Consumer Financial Protection Act, 12 U.S.C. §§ 5531, 5536(a), 5564, 5565, the Telemarketing Consumer Fraud and Abuse…

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Ohio AG Files Complaint Against California Loan Modification Companies Over Misrepresentations

​On November 6, the Ohio Attorney General’s Office (Ohio AG) announced that it had filed a complaint in Ohio state court against a California man and two companies he owned (the California Companies) for making deceptive promises in connection with loan modification assistance to consumers.  The California Companies contacted consumers and offered them loan modification services for purchase,…

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Utah Bank Settles with U.S. Attorney's Office for the Eastern District of Pennsylvania

On September 28, 2017, the United States Attorney’s Office for the Eastern District of Pennsylvania (USAO) announced it entered a $3.6 million settlement agreement with a Utah Bank and its affiliated payment processor to settle allegations that the bank and its processor committed fraud by illegally debiting money for specific telemarketing and Internet marketing merchants (Merchants). The USAO’s settlement is the…

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National Mortgage Lender Pays $1.6 Million to Federal Government to Settle False Claims Act Allegations

On September 28, 2017, the United States Attorney’s Office for the Southern District of New York (USAO), along with the U.S. Department of Housing and Urban Development (HUD) and HUD’s Office of the Inspector General (HUD-OIG), announced that they had reached a settlement with a national mortgage lender over alleged…

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New York DFS Settles With Payday Loan Debt Collector and Servicer For $12 Million

On September 25, 2017, New York’s Department of Financial Services (DFS) announced that it had entered into a consent order​ with a payday loan servicer and debt collector over the servicing and collection practices on usurious payday loan debts, resulting in nearly $12 million in relief for affected consumers. Payday loans are illegal in New York, and…

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CFPB Enters Consent Order with Lead Aggregator For Steering Consumers to Illegal Loans

On September 6, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a lead aggregator over claims the aggregator steered consumers towards lenders who offered installment or payday loans that were illegal in consumers’ states.  The consent order claimed that the aggregator sold loan applications to lenders…

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CFPB Orders National Bank to Pay $4.6 Million in Civil Penalties for Credit Reporting Practices

On August 2, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a national bank, resolving allegations as to the bank’s allegedly unlawful credit reporting activities. According to the CFPB, the bank violated several federal laws with respect to its reporting practices, including the Fair Credit Reporting Act, 15…

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Massachusetts AG Obtains Preliminary Injunction Against Debt Collection Law Firm Over Illegal Practices

On July 13, 2017, the Massachusetts Attorney General’s Office (“Massachusetts AG”) announced​ that it obtained a preliminary injunction against a debt collection law firm and its principal attorney.  The Massachusetts AG alleged that the law firm engaged in unlawful collection practices, in violation of the Massachusetts AG’s debt collection regulations. The law firm collected debts for…

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HUD Bans Mortgage Lender from Originating FHA-Insured Loans Because of False Financial Statements

​On July 11, 2017, the United States Department of Housing and Urban Development (HUD) announced​ that its Mortgagee Review Board had suspended a national mortgage lender from originating and underwriting new mortgages insured by the Federal Housing Administration (FHA).  ​HUD’s Departmental Enforcement Center also banned the lender’s owner from doing business with the federal…

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Mortgage Lender Pays $4.157 Million to Settle False Claims Act Allegations Concerning FHA Loans

​On July 3, 2017, the United States Department of Housing and Urban Development (HUD), the HUD Office of Inspector General (HUD-OIG), the U.S. Attorney’s Office for the Northern District of Georgia, and the U.S. Attorney’s Office for the Northern District of California announced that they had reached a settlement with a national mortgage lender, resolving…

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CFPB Takes Action Against Mortgage Servicer for Unlawful Practices

On June 7, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a Chicago-based mortgage servicing company, settling allegations that it failed to provide borrowers with the foreclosure protections required by law. According to the CFPB, the mortgage servicer violated federal consumer protection laws in its…

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