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CFPB and DOJ Sue Land Developer Over Allegations of Discriminatory Lending

​On December 20, 2023, the CFPB announced that, along with the DOJ, it had filed suit against a Texas-based developer and lender for operating an allegedly illegal land sales scheme that targeted Hispanic borrowers. ​The complaint, filed in the U.S. District Court for the Southern District of Texas, alleges that the lender sells…

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Pursuant to Consent Order with CFPB, National Bank to Pay $25.9 Million for Alleged Discrimination Against Armenian Americans

O​n November 8, 2023, the CFPB and a national bank entered into a consent order​ to resolve allegations that the bank engaged in intentional discrimination against Armenian Americans who had applied for credit cards with said bank. Specifically, the CFPB alleges that between 2016 and 2021, the bank singled out…

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48 States Settle with Payment Processor Over Unauthorized Withdrawal Claims for $10 Million

On October 17, 2023, the California Attorney General announced that 48 states, Washington D.C., and Puerto Rico had reached a $10 million settlement with a payment processing company related to allegations of attempted unauthorized withdrawals related to a testing error on the part of the processing company. According to the press release,…

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CFPB Enters Settlement with Credit Repair Conglomerate for $2.7 Billion

On August 28, the CFPB announced ​it reached a proposed settlement agreement with a credit repair conglomerate for $2.7 billion. The parties await approval of the proposed settlement by the U.S. District Court for the District of Utah. In its amended​ complaint filed last August, the CFPB alleged that the defendant companies collected advance…

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C.D. Cal. Issues Temporary Restraining Order Against Companies Accused of Preying on Students Seeking Debt Relief

On August 21, the FTC announced that the U.S. District Court of Central California issued a temporary restraining order against two companies ​accused of targeting students seeking debt relief and collecting $8.8 million in illegal advanced fees in exchange for student loan debt relief services that did not exist. ​In its complaint,…

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CFPB Settles Allegations of Illegal Medical Debt Collection and Unfair Credit Reporting with Third-Party Debt Collector

​On June 8, the CFPB announced it had entered into a consent order with a third-party debt collector over allegations of illegal medical debt collecting practices and unfair credit reporting. The CFPB asserted that the company attempted to collect​ on unsubstantiated debt in over a thousand cases. ​​According to the CFPB, its…

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State AGs Sue Personal Lending Company Over Hidden Add-Ons

On August 16, 2022, the Pennsylvania Attorney General announced that a group of attorneys general for the Commonwealth of Pennsylvania, the States of New Jersey, Oregon, Utah, and Washington, and the District of Columbia (collectively, “the AGs”) ​had filed a multistate lawsuit against a personal lending company for allegedly charging consumers for “hidden add-on products” in violation of various…

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CFPB Enters Into Consent Order with Fintech Company for $2.7 Million

​On August 10, 2022, the Consumer Financial Protection Bureau (CFPB) announced ​that it entered into a consent order with a California Fint​ech company for allegedly engaging in deceptive acts and practices in violation of the Consumer Financial Protection Act. According to the CFPB, the company offered an automatic savings tool to customers through which customers would grant the…

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CFPB Orders Debt-Relief Payment Processors to Pay $11 Million in Redress and Penalties

​On May 11, 2022, the Consumer Financial Protection Bureau (CFPB) announced that it had resolved an enforcement action against two debt-relief payment processors and one of their co-founders. The CFPB alle​ged the processors improperly collected debt relief fees from consumers, misled consumers about timing of fee payments, and sent illegal fee advancements to debt-relief companies….

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DC AG Reaches $4 Million Settlement with Online Lender

On February 8, 2022, the Attorney General for the District of Columbia (DC AG) announced​ that a Delaware-based online lender has agreed to pay $3​.3 million to refund over 2,500 consumers who allegedly received misleadingly high-cost loans and lines of credit.  This agreement resolves​ a lawsuit filed by the DC AG in the Superior Court of the District of Columbia,…

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Student Loan Servicer Reaches $8 Million Agreement with DOJ to Resolve False Claims Allegations

On January 14, ​2022, the Department of Justice (DOJ) ​anno​un​ced​ that it reached an agreement ​with a student loan servicer that had serviced loans under the Federal Family Education Loan (FFEL) Program.  The agreement resolves allegations that the loan servicer submitted false claims to the Department of Education (DOE) in violation of the False Claims Act (FCA)​….

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