On April 17, 2024, the New York State Attorney General (NY AG) announced that it entered into an Assurance of Discontinuance (AOD) with a national bank, resolving allegations related to the bank’s debt collection practices. The bank is a nationally chartered bank that issues debit cards, prepaid cards, payroll cards, and gift cards, primarily through third-party servicers, many of whom…
Last month, the Justice Department (DOJ) and the Consumer Financial Protection Bureau (CFPB) issued a joint statement that reminded financial institutions that all credit applicants are protected from discrimination on the basis of their national origin, race and other characteristics covered by the Equal Credit Opportunity Act (ECOA), regardless of…
On October 17, 2023, the Washington State Attorney General (AG) announced that over the course of 2023, they had recovered approximately $360,000 in restitution from three out-of-state debt adjusters for alleged predatory student debt adjustments in violation of the Debt Adjustment Act. The Debt Adjustment Act limits the amount of fees a debt adjuster…
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,…
On October 11, 2023, Minnesota Attorney General Keith Ellison announced a settlement with a California student loan debt relief company for $17,000. This settlement marks the 14th time AG Ellison has pursued action against student loan debt relief companies since 2016. The settlement resolves allegations that the company illegally collected fees from customers and…
The Consumer Financial Protection Bureau (CFPB) is moving forward with a rulemaking proposal to change the process of reporting medical debt on consumer credit reports. Specifically, the rulemaking proposal the Bureau is considering had two main parts. First, it prohibits credit reporting companies from including medical debts and collection information on…
On September 8, 2023, the United States District Court of the Eastern District of Texas granted plaintiff U.S. Chamber of Commerce’s (the “Chamber”) motion for summary judgment invalidating the Consumer Finance Protection Bureau’s (“CFPB”) Exam Manual changes from March 2022 that stated that discriminatory conduct may be a UDAAP violation….
On September 7, 2023, the Consumer Financial Protection Bureau (CFPB) published its analysis of how smartphone companies are affecting consumers’ use of so-called “tap-to-pay” technology – the wireless transfer of data over very short distances, used in financial transactions conducted at the point of sale. Concluding that “tech companies are…
On July 26, 2023, the Consumer Financial Protection Bureau (CFPB) issued a new Supervisory Highlights report (Report) that sheds light on the CFPB’s observations and findings of unfair, deceptive, and abusive practices in auto loan servicing, among other consumer financial products. The Report – which covers CFPB supervisory examinations from…
On July 17, 2023, Didier Reynders, Commissioner for Justice and Consumer Protection of the European Commission and Rohit Chopra, Director of the Consumer Financial Protection Bureau, announced the start of an “informal dialogue” between their two agencies. Reynders and Chopra indicated that the dialogue would cover a variety of important…
On July 19, 2023, the Consumer Financial Protection Bureau (“CFPB”) sued Snap Finance LLC, Snap R TO LLC, Snap Second Look LLC, Snap U.S. Holdings LLC, and Snap Finance Holdings LLC (collectively, the Snap Defendants or Snap). The complaint alleged that the Snap Defendants violated the: Consumer Financial Protection Act…
On July 13, 2023, the CFPB and various state attorneys general, along with California’s Department of Financial Protection and Innovation, filed an adversary proceeding against a sales training company for deceptive marketing and debt collection practices relating to the company’s allegedly illegal student loan program. The eight-count complaint, filed in the United States Bankruptcy Court…
On July 7, 2023, the Consumer Financial Protection Bureau (CFPB), U.S. Department of Health and Human Services (DOH), and U.S. Department of Treasury (DOT) initiated a public inquiry into certain financial products, such as medical credit cards and installment loans that the CFPB characterized as “high-cos specialty products.” The CFPB,…
On July 13, 2023, Minnesota Attorney General Keith Ellison filed an enforcement action against a for-profit educational provider alleging the educational provider engaged in deceptive marketing and lending practices. The suit was filed in Delaware Bankruptcy Court in partnership with the Consumer Financial Protection Bureau, California’s Department of Financial Protection and Innovation,…
On July 1, 2023, the New Jersey Division of Consumer Affairs, Office of Consumer Protection (Division) entered into a consent order with a national mortgage servicer. According to the Division’s press release, the company, which was formerly licensed in New Jersey before relocating to Florida, had violated the state’s consumer protection laws in…
On June 6, 2023, the Consumer Financial Protection Bureau (CFPB) issued a Spotlight on financial institutions’ growing use of “chatbots” as a means to provide cost-effective customer service. The use of chatbots in customer service has been gaining popularity among financial institutions in recent years. The ten largest commercial banks…
On January 26, 2023, the Massachusetts Division of Banks (DOB) entered into a consent order with a California-based mortgage lender. According to the DOB, the company, which was licensed as a mortgage lender in Massachusetts, had allowed a separate company to use its government issued mortgage license number, which could mislead consumers into…
On Monday May 10, 2023, the Consumer Financial Protection Bureau (CFPB or the Bureau) released a circular regarding the Bureau’s newest guidance that if a “financial institution unilaterally reopens [deposit] accounts to process debits or deposits, it can constitute an unfair practice under the [Consumer Financial Protection Act of 2012]…
On May 4, 2023, the CFPB issued a report titled Medical Credit Cards and Financing Plans (the “Report”) that summarized the new developments in medical financing and the associated risks with these products. The Report complements the CFPB’s April 26, 2023 report that analyzed a sample of final medical collection…
On Tuesday, April 11, 2023, a three-judge panel of the United States Court of Appeals for the Third Circuit affirmed the dismissal of a putative class action alleging that JP Morgan Chase Bank, N.A. (Chase) failed to itemize annual fees on its credit card renewal notices in violation of the…