On January 9, 2025, 51 State Financial Regulatory Agencies (the “Agencies”) announced a coordinated consent order and settlement agreement with nonbank mortgage servicing companies (the “Companies”). This action came following a data breach that impacted 5.8 million customers, allegedly due to deficient cybersecurity practices, and for lack of cooperation with state regulators. The Companies are licensed as…
On January 7, 2025, the Consumer Financial Protection Bureau (“CFPB”) filed a complaint against a nationwide consumer reporting agency (“Agency”) under the Fair Credit Reporting Act (“FCRA”) and the Consumer Financial Protection Act of 2010 (“CFPA”). The CFPB claims that the Agency inadequately reinvestigated consumer disputes that challenged the information found in consumer…
The Consumer Financial Protection Bureau (“CFPB”) filed a complaint against a manufactured home loan company (the “Company”) on January 6, 2025, alleging that it originates loans that borrowers are unlikely to be able to repay in order to sell more homes, resulting in additional fees, penalties, and sometimes the loss of their…
On December 31, 2024, the Massachusetts Commissioner of Banks entered into a consent order with a third party loan servicer (the “Company”), for allegedly engaging in the business of loan servicing in Massachusetts without the appropriate registration. The Company is a California corporation operating in Massachusetts. While records show that the Company submitted…
On November 4, 2024, the Massachusetts Commissioner of Banks (the “Commissioner”) entered into a consent order with a licensed motor vehicle sales finance company (the “Company”) in relation to its retail installment contracts and their level of compliance with relevant Massachusetts and federal statutes. An examination carried out by the Commissioner regarding the Company and…
On October 31, 2024, the CFPB announced that it had entered into a consent order with a credit union, resolving allegations that the union had ineffectively rolled out a new online banking platform that left consumers without adequate access to basic banking functions, and thereby inflicted financial harm. In May 2022, the credit union attempted to launch…
On October 21, 2024, Connecticut Attorney General William Tong announced a settlement with a banking fraud prevention company (the Company), resolving allegations related to a data breach that impacted the personal information of a Connecticut Bank’s customers. The Company uses behavioral analytics and machine learning to help prevent banking fraud for its…
On July 26, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it filed a complaint against a point-of-sale financing company and its former chief executive officer in the United States District Court for the District of Utah. The complaint alleges that defendants’ “virtual rent-to-own” product uses misleading marketing and abusive enrollment practices that target consumers with…
On July 10, 2024, the California Department of Financial Protection and Innovation (DFPI) announced that it would be revoking the California Financing Law license of a finance lending company based in San Francisco. The finance lending company offers loans to individuals and businesses. In April 2024, its parent company filed…
On May 7, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a financial technology company, resolving allegations that the company committed unfair acts or practices in violation of the Consumer Financial Protection Act (CFPA), by failing to provide consumers who closed their accounts with timely…
On May 6, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it filed a complaint and two proposed stipulated final judgments to resolve its claims against the National Collegiate Student Loan Trusts (the Trusts) and the Pennsylvania Higher Education Assistance Agency d/b/a American Education Services (PHEAA). The CFPB alleges that the Trusts and PHEAA violated…
On April 24, 2024, the California Department of Financial Protection and Innovation (DFPI) announced that it had entered into a consent order with the Higher Education Loan Authority of the State of Missouri (MOHELA), resolving allegations that MOHELA failed to timely provide DFPI with information detailing the contact information of certain Californian student loan…