On December 6, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it had filed suit against a bank subsidiary of a financial services company for allegedly disconnecting customer service calls, charging illegal ATM fees, misleading fraud victims, imposing illegal terms of service on consumers seeking to stop payments, failing to investigate account…
On December 4, 2024, the CFPB announced that it entered into a proposed stipulated judgment with a student loan servicer and its owner, resolving allegations that the student loan servicer violated the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act (CFPA). According to the judgment, the servicer at issue and its owner illegally…
On March 18, 2024, the Federal Trade Commission (FTC) announced that it entered into proposed orders with two fintech firms, resolving allegations of misconduct tied to the firms’ involvement in federal COVID-19 Paycheck Protection Programs (PPP). Specifically, the proposed orders resolve allegations that the firms violated Section 5(a) of the FTC Act,…
On December 15, 2023, the CFPB announced that it entered into a consent order with a medical debt collector resolving allegations that the debt collector tried to collect unverified medical debts after consumers disputed the validity of those debts. The CFPB alleges that the company failed to conduct reasonable investigations of disputed debts and failed to inform consumer reporting companies…
On October 24, 2023, the Federal Trade Commission (FTC) announced that it had filed a complaint against a Wisconsin-based auto dealership alleging “unfair or deceptive acts or practices in or affecting commerce” in violation of FTC Act,15 U.S.C. § 45(a), and violations of the Equal Credit Opportunity Act (ECOA) and Regulation B, which prohibit…
On October 11, 2023, Minnesota Attorney General Keith Ellison announced a settlement with a California student loan debt relief company for $17,000. This settlement marks the 14th time AG Ellison has pursued action against student loan debt relief companies since 2016. The settlement resolves allegations that the company illegally collected fees from customers and…
On July 13, 2023, Minnesota Attorney General Keith Ellison filed an enforcement action against a for-profit educational provider alleging the educational provider engaged in deceptive marketing and lending practices. The suit was filed in Delaware Bankruptcy Court in partnership with the Consumer Financial Protection Bureau, California’s Department of Financial Protection and Innovation,…
On June 27, 2023, the CFPB announced that it had entered into a consent order with a company that offers payment processing services across a wide range of industries including utilities, student loan servicing, healthcare, education, insurance, telecommunications, and mortgage servicing. The order resolves allegations that the company improperly initiated approximately $2.3 billion in unlawful mortgage payment…
On February 14, 2023, the Minnesota Attorney General (AG) announced a settlement with a California-based student-loan debt relief company to resolve allegations that the company operated a fraudulent student loan debt forgiveness scheme. The AG alleged that the company violated Minnesota’s Debt Settlement Services Act, Minn. Stat. §§ 332B.03-.12, the Prevention of Consumer Fraud Act, Minn. Stat. §…
On February 10, 2023, the Massachusetts Division of Banks (DOB) announced that it entered into a consent order with an online loan servicer headquartered in Chicago, Illinois. The order resolves allegations that the company “engaged in the business of a small loan company from at least August 1, 2016 through May 31, 2019 in Masschusetts without the appropriate…
On January 4, 2023, the Consumer Financial Protection Bureau (CFPB) and New York State Office of the Attorney General (NY AG) announced a joint enforcement action against one of the country’s largest publicly-traded indirect auto lenders. The 8-count complaint, filed in the United States District Court for the Southern District of New York,…