Search Results: CFPB

National Mortgage Servicing Company Enters Proposed Consent Order Over Loss-Mitigation Activities

The Consumer Financial Protection Bureau (“CFPB”) announced that it and the Federal Trade Commission (FTC) entered into  a Proposed Consent Order with  a national mortgage servicing company over allegations that its loss-mitigation activities violated the Federal Trade Commission Act (“FTCA”), the Consumer Financial Protection Act (“CFPA”), the Fair Debt Collection Practices…

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Military Allotment Payroll Processor Enters Consent Order With CFPB Over Fees

On April 20, the Consumer Financial Protection Bureau (CFPB) announced that it entered a Consent Order with a military payroll processor over allegations that the payroll processor applied hidden monthly fees against funds in servicemembers’ accounts, which were designated to pay creditors. The CFPB found that servicemembers usually contracted with…

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Military Financial Services Provider Settles With CFPB for Alleged Failure to Disclose Fees

On April 20, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced that it entered a settlement with a Kentucky-based financial services provider over claims that the company charged excessive fees for the payroll deductions of military servicemen, and that it failed to disclose these fees to consumers. The copany allegedly…

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Tax-Refund Lender Settles Predatory Lending Claims Brought By CFPB

On April 14, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced that it reached a settlement with a New Mexico-based tax-refund lender over claims that the lender steered borrowers to excessively costly products, failed to accurately disclose the APR for loans, and failed to notify the availability of refunds.  The CFPB alleged in…

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California Mortgage Lender Settles With CFPB for Allegedly Deceptive Advertising Practices

On April 9, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced a settlement with a California-based mortgage lender over claims that the lender engaged in deceptive advertising practices. The company allegedly mailed advertisements bearing the logos of the Department of Veterans Affairs and the Federal Housing Administration, ostensibly to give…

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CFPB Files Lawsuit Against Alleged Phantom Debt Collection Ring

​On April 8, 2015, the CFPB announced that it filed a complaint against a group of individuals and companies, alleging that they engaged in a false debt collection scheme targeting consumers in Georgia and New York. After obtaining consumer information from debt brokers and other sources, the group allegedly robo-called…

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Debt Collection Diversion Company Settles With CFPB for Allegedly Illegal Debt Collection Practices

On March 30, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced that a California-based debt collection agency agreed to settle claims over alleged illegal and deceptive collection practices in violation of the Consumer Financial Protection Act (“CFPA”) and the Fair Debt Collection Practices Act (“FDCPA”). The CFPB alleged in its complaint…

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Director Cordray Conducts First Ever CFPB Enforcement Appeal Hearing

On March 9, 2015, Consumer Financial Protection Bureau (CFPB) Director Richard Cordray held oral arguments in the first appeal of a CFPB administrative enforcement action.  Both counsel for the CFPB and Respondents PHH Mortgage Corporation and Atrium Insurance Corporation appealed to Cordray from the Administrative Law Judge’s (ALJ) Recommended Decision,…

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CFPB Finds Arbitration Agreements Limit Consumer Redress

On March 10, 2015, the Consumer Financial Protection Bureau (CFPB) released its Arbitration Study, which concludes that arbitration agreements in contracts associated with consumer financial products constrain consumers’ ability to assert their rights if a dispute arises.  The study, which the CFPB was directed to carry out under Section 1028(a)…

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CFPB Director Faces Tough Questions Before House Committee on Financial Services

On March 3, 2015 CFPB Director Richard Cordray appeared before the House Committee on Financial Services to deliver testimony regarding the Bureau’s work.  Director Cordray spent much of his semiannual address touting the Bureau’s efforts in the mortgage space.  In his written statement, Director Cordray commented on the Bureau’s Qualified…

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CFPB Receiving Plenty of Advice on Proposed Regulation of Payday Lending

State and federal regulation of payday lenders is far from a new phenomenon.  Recently, litigation against entities using the “tribal lending” model, and government attempts to suppress certain online lending programs via Operation Chokepoint have put the spotlight back on industry.  In past articles, we have noted that the Consumer Financial…

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CFPB Enters Consent Order with California Mortgage Lender Over Claims of Deceptive Mailings

On February 12, 2015, the CFPB announced that it had entered a consent order with a California-based mortgage lender and broker to resolve allegations that the lender allegedly sent deceptive mailings signifying an FHA and VA affiliation in violation of Regulation N and the Consumer Financial Protection Act. The lender…

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CFPB Settles with Utah Mortgage Lender Over Claims of Deceptive Advertising Targeted at Veterans

On February 12, 2015, the CFPB announced that it had entered into a consent order with a Utah-based mortgage broker and lender to resolve allegations that the lender sent deceptive mailings to VA homeowners in violation of Regulation N and the Consumer Financial Protection Act. The lender allegedly sent mailings…

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CFPB Sues Maryland Reverse Mortgage Lender Under UDAAP

On February 12, 2015, the CFPB announced that it had filed a complaint in the U.S. District Court for the District of Maryland alleging that a Maryland-based reverse mortgage lender and broker disseminated deceptive and misleading advertisements for mortgage credit products, thereby violating the Mortgage Acts and Practice Rule, 12…

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CFPB Orders Lender To Reduce Student Loan Principal Balances By $480 Million

The Consumer Financial Protection Bureau (CFPB) recently announced that it had reached an agreement to give students of Corinthian College, Inc. at least $480 million in principal reductions on existing student debt. Former and current students will receive an immediate 40% reduction on existing principal balances of their loans with…

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