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. …
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…
On June 30, 2024, the Office of the Attorney General for the District of Columbia filed an action against an online ticket exchange and resale website alleging violations of the District of Columbia’s Consumer Protection Procedures Act (D.C. Code §28-3904(e)). The complaint alleges that the company used deceptive and unfair…
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…
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…
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….
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…
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…
On July 10, 2024, the California Department of Financial Protection and Innovation (DFPI) announced that it would be revoking the California Financing Law license of a finance lending company based in San Francisco. The finance lending company offers loans to individuals and businesses. In April 2024, its parent company filed…
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…
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…