Search Results: Consumer Protection

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…

Read More

CFPB Enters Into Consent Order With Financial Technology Company

On May 7, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a financial technology company, resolving allegations that the company committed unfair acts or practices in violation of the Consumer Financial Protection Act (CFPA), by failing to provide consumers who closed their accounts with timely…

Read More

DFPI Enters Into Consent Order With Higher Education Loan Authority

  On April 24, 2024, the California Department of Financial Protection and Innovation (DFPI) announced ​that it had entered into a consent order with the Higher Education Loan Authority of the State of Missouri (MOHELA), resolving allegations that MOHELA failed to timely provide DFPI with information detailing the contact information of certain Californian student loan…

Read More

National Bank Settles with NY Attorney General for $700K

​On April 17, 202​4, 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…

Read More

California DFPI Settles with Financial Services Company Over Customer Service Complaints

On February 27, 2024, the California Department of  Financial Protection and Innovation (DFPI) announced ​that it entered into a consent order with a San Francisco-based financial services company resolving allegations that​​ the company’s handling of consumer complaints violated California’s Consumer Financial Protection Law (CCF​PL)​.  The company, which partners with regional banks to provide mobile…

Read More

California Federal Court Bans Mortgage Operators as Result of Joint FTC and DFPI Case

​On February 2, 2024, the U.S. District Court for the Central District of California issued an order permanently banning several companies and their owners from the telemarketing and debt relief businesses and requiring them to pay approximately $19 million in restitution and civil money penalties​.  This order came as a…

Read More

Payments Company Settles with DFPI Over Alleged Junk Fees

​On January 9, 2024, the California Department of Financial Protection and Innovation (DFPI) announced that it entered into a consent order with an internet-based financial services company that allows online merchants to offer payment in installments to its customers.  The DFPI alleged that the company violated the California Consumer Financial Protection Law (CCFPL) by failing to disclose…

Read More

The Justice Department and Consumer Financial Protection Bureau Issue Joint Statement Focused on Antidiscrimination in Lending Practices

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…

Read More

Washington Attorney General Announces Recovery in Student Debt Adjuster Investigations

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…

Read More

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,…

Read More

The CFPB Proposal to Remove Medical Debt from Credit Report

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…

Read More

U.S. Chamber of Commerce Wins Summary Judgment in Challenge to CFPB’s Update to Its Examination Manual

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….

Read More

CFPB Analyzes Mobile Device Tap-To-Pay Market as Possible Precursor to New Regulation

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…

Read More

CFPB and Justice and Consumer Protection of the European Commission Announce Plans for an "Informal Dialogue"

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…

Read More

Bureau Sues Lease-to-Own Company for its Financing Options to Asset Limited Consumers

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…

Read More

CFPB and States Launch Enforcement Action Related to Student Loans

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…

Read More

CFPB, U.S. Department of Health and Human Services, and U.S. Department of Treasury Initiate Public Inquiry into Financial Products Targeted at Healthcare Costs

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,…

Read More

Minnesota AG Sues For-Profit Educational Provider for Deceptive Marketing and Lending Practices

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,…

Read More

12