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…
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…
On April 23, 2024, the Minnesota Attorney General announced his office had sued a used-car dealer and its owner for violation of multiple state consumer protection statutes. The suit’s allegations include that the dealer “(1) misrepresent[ed] that its used cars are certified when they are not; (2) illegally add[ed] expensive vehicle service contracts…
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…
On April 1, 2024, North Carolina Attorney General Josh Stein filed a complaint against a consumer lender, claiming that the lender charged consumers hidden premiums and fees for add-on products associated with its offering of small dollar personal loans, in violation of the Consumer Financial Protection Act (CFPA), the Truth In Lending Act…
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 (CCFPL). The company, which partners with regional banks to provide mobile…
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…
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…
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,…