On June 9, 2015, the Federal Trade Commission (“FTC”) announced that it provided its 2014 Annual Financial Acts Enforcement Report (the “Report”) to the Consumer Financial Protection Bureau (“CFPB”) and the Federal Reserve Board. The 23-page Report, dated May 29, 2015, provided information about enforcement and related activities involving Regulation Z (Truth in…
On June 10, the Federal Trade Commission (“FTC”) announced that it entered into a consent order with an Arkansas car dealer over charges that the car dealer failed to display a “Buyers Guide” on used cars offered for sale. In connection with the settlement, the car dealer agreed to pay…
On June 10, the Federal Trade Commission (“FTC”) announced that it unanimously approved consent orders with two Georgia car title lenders that the FTC charged had failed to disclose important conditions about financing for their title loans. In its complaint, the FTC alleged that the car title lenders violated the…
On May 15, the Federal Trade Commission (FTC) announced that a settlement was reached against “a company that deceptively advertised its add-on biweekly auto payment plan” for allegedly violating the FTC Act, 15 U.S.C. Section 45, et seq. The Complaint alleged that the payment liaison company deceptively pitched consumers a…
On May 7, 2015, the Department of Justice (DOJ) announced a settlement with a regional bank over allegations of discriminatory lending. In a Complaint filed in federal court, the Department of Justice alleged that the bank engaged in a “pattern or practice” of charging Hispanic or African American borrowers higher…
On April 20, 2015, the Tennessee Attorney General announced that it and the Tennessee Division of Consumer Affairs reached a settlement with a state auto dealer over allegations that the auto dealer violated the Tennessee Consumer Protection Act by mailing two false advertisements to consumers. The allegedly false advertisements purported…
On February 24, 2015, Capital One Financial Corporation disclosed in its annual SEC 10-K filing that in early 2015 it had received subpoenas related to the bank’s subprime auto financing and securitization activities from the New Jersey office of the Department of Justice (DOJ) and the New York district attorney’s…
On February 25, 2015, a national lender and securitizer of automobile loans disclosed in a SEC Filing that the Department of Justice (“DOJ”) issued a subpoena to the lender in January 2015 regarding its origination and securitization of subprime auto loans. The lender disclosed that the DOJ may initiate civil…
On February 25, 2015, the Department of Justice (“DOJ”) announced a settlement with a national motor vehicle lender over allegations that the company repossessed over 1,1000 cars in violation of the Servicemembers Civil Relief Act, 50 U.S.C. Sections 501-597b. A consent order was filed in the U.S. District Court for…
On February 24, 2015, a national bank disclosed in an SEC filing that the Department of Justice (“DOJ”), Department of the Treasury, U.S. Attorney’s Office for the District of New Jersey, and New York district attorney’s office issued subpoenas to the bank in early 2015 related to the bank’s subprime…
The DOJ announced a settlement of the first “buy here, pay here” discriminatory auto-lending lawsuit. The complaint, filed in January, 2014 by the DOJ, the U.S. Attorney’s Office for the Western District of North Carolina and the North Carolina Attorney General in the U.S. District Court for the Western District…
On September 18, CFPB Director Richard Cordray delivered remarks at a Field Hearing about CFPB’s latest proposed rule, which would allow it to begin regulating “captive” finance companies – those entities owned by automotive manufacturers “for the primary purpose of facilitating sales for their parent companies and associated dealers.” In his…
The Department of Justice is investigating whether to bring civil claims under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) against GM Financial Company, Inc. for its origination and securitization of subprime auto loans. GM Financial revealed the investigation in a recent SEC 8-K filing, stating that…
The Federal Trade Commission (FTC) recently announced a $5.5 million monetary and injunctive settlement with auto lender Consumer Portfolio Services, Inc. (CPS) concerning allegations that the company used illegal tactics in servicing and collecting consumers’ auto loans, and failed to adopt proper quality controls, in violation of Section 5 of…