Search Results: Consumer Protection

Massachusetts Division of Banks Issues Consent Orders Over Vehicle Repossession Practices

In late 2024, the Massachusetts Division of Banks (the “Division”) announced consent orders with four auto finance companies resolving allegations of improper repossession of motor vehicles. On November 4, 2024, the Division announced that it had entered into a consent order with a motor vehicle sales finance company that also operates as…

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DFPI Obtains $300,000 in Refunds and Penalties from Crypto Lending Platform

On December 23, 2024, The California Department of Financial Protection and Innovation (DFPI) announced a consent order with a crypto lending platform (the Company)​​​​ that provides financial services to retail and institutional customers to resolve the Department’s investigation into the Company’s lending program. The DFPI alleged that the Company breached the California…

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CFPB Sues Bank Regarding Allegations of Fraud Against Benefit Recipients

​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…

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Minnesota AG Enters into Consent Order Over High-Cost Online Lenders, Discharging Over $1 Million in Loans

On Tuesday, November 26, the Minnesota Attorney General’s office (AG) announced it filed a consent order to resolve allegations that online lenders were charging interest on loans in excess of the amounts prescribed under Minnesota usury laws.  Under the consent order, over $1 million in allegedly illegal loans were discharged….

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Ninth Circuit Strikes Mass Arbitration Agreement as Unenforceable under California Law

On October 28, 2024, the Ninth Circuit struck a mass arbitration agreement as unconscionable and unenforceable under California law in Heckman v. Live Nation Ent., Inc., No. 23-55770.  The three-judge panel affirmed the district court’s decision holding that the arbitration agreement’s delegation clause was unconscionable under California law.  The panel…

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CFPB Enters into Consent Orders with Tech Company and Bank Over Credit Card Allegations

On October 23, 2024, the CFPB announced that it had entered into separate consent orders with a large tech company and a bank over a joint credit card venture. The CFPB alleges that the credit card, which combined the tech company’s software with the credit-backing of the bank, ​was launched prematurely, which…

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Connecticut AG Enters Into Settlement With Banking Fraud Prevention Company

​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…

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CFPB Issues Guidance Emphasizing the Importance for Banks to Maintain Sufficient Proof of Customers’ Affirmative Consent to Overdraft Services

In recent discussions surrounding banking practices, the issue of overdraft fees, particularly for ATM and one-time debit card transactions, has gained significant attention.  On September 17, 2024, the Consumer Financial Protection Bureau (Bureau) issued Consumer Financial Protection Circular 2024-05 asserting that “[a] bank or credit union can be in violation…

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CFPB Report Spotlights Consumer Risks with Private, Solar-Specific Loans

On August 7, 2024, the Consumer Financial Protection Bureau (CFPB) issued a report spotlighting four marketing and financing practices relating to solar financing that it claims pose significant consumer risks (the Report).  The CFPB noted that solar-powered electricity is a growing industry—suggesting that these risks may become an enforcement priority. …

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CFPB Enters Into Consent Order with Software Company and CEO Resolving Allegations of Illegal Fees

On August 8, 2024, The CFPB entered into a proposed consent order with a software company and the company’s CEO, resolving allegations that defendants aided credit repair companies in charging illegal upfront fees.  Back in January 2022, the CFPB filed an amended complaint ​against defendants, alleging violations​ of the Telemarketing…

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CFPB Files Suit Against "Rent-to-Own" Business Alleging Illegal Lending Practices

​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…

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FRB Fines Utah Prepaid Debit Card Company $44 Million for Unfair and Deceptive Practices

On July 19, 2024, the Federal Reserve Board announced it had fined a Utah-based company that offers prepaid debit cards $44 million for alleged unfair and deceptive practices as well as an alleged deficient consumer compliance risk management program. ​In its Order to Cease and Desist and Order of Assessment of…

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California DFPI Revokes Company's Lending License for Failing to Comply with Regulatory Exam

On July 10, 2024, the California Department of Financial Protection and Innovation (DFPI) issued an order revoking the California Financing Law license of a company that had offered both individual and business loans in the state, following that company’s alleged failure to provide information during the DFPI’s attempt to conduct a regulatory examination….

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CFPB Files Proposed Judgment in Bank Suit Regarding the Opening of Unauthorized Accounts

​On July 9, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it filed a proposed stipulated final judgment and ​order in its suit against a national bank accused of allegedly opening unauthorized accounts on behalf of consumers​​. ​ The proposed judgment would resolve allegations that the bank opened unauthorized accounts in the names of its customers.  As…

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CFPB Enters Into Consent Order with Bank Resolving Allegations of Force-Placed-Insurance

On July 9, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a national bank, resolving allegations related to the bank’s auto lending practices. The consent order​ ​​related to auto lending practices resolves allegations that the bank’s practices related to force-placed insurance policies violated the Consumer Financial Protection Act of 2010 (CFPA), 12…

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CFPB Reports Troubling Trends in Credit Card Rewards Programs

On May 9, 2024, the Consumer Financial Protection Bureau (CFPB) issued a new Issue Spotlight regarding growing problems in the credit card rewards program industry. Credit card rewards programs have become increasingly complex in recent years.  Especially for credit cards with high annual fees, a key part of attracting interest…

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