Search Results: Credit Cards

Utah Bank Settles with U.S. Attorney's Office for the Eastern District of Pennsylvania

On September 28, 2017, the United States Attorney’s Office for the Eastern District of Pennsylvania (USAO) announced it entered a $3.6 million settlement agreement with a Utah Bank and its affiliated payment processor to settle allegations that the bank and its processor committed fraud by illegally debiting money for specific telemarketing and Internet marketing merchants (Merchants). The USAO’s settlement is the…

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CFPB Files Complaints Against Credit Repair Companies for Charging Illegal Fees and Misleading Consumers

On June 27, 2017, the Consumer Financial Protection Bureau (CFPB) announced​ that it filed two complaints and proposed final judgments against four California-based credit repair companies for misleading consumers and charging illegal fees. The CFPB alleged that the companies charged illegal advance fees for credit repair services and misrepresented their ability to repair…

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FTC and Florida AG Agree to Nearly $5 Million Settlement With Defendants Pitching "Worthless" Credit Card Interest Rate Reductions

FTC

On June 5, 2017, the Federal Trade Commission (FTC) announced that a federal district court had entered its eighth order against the remaining defendants in an illegal robocall ring in which defendants promised to help consumers lower their credit card interest rates. The FTC, in conjunction with the Florida Office of the Attorney…

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CFPB's Monthly Complaint Report Spotlights Debt Collection Issues, Trends in Credit Card Complaints

On March 28, 2017, the Consumer Financial Protection Bureau (CFPB) released Volume 21 of its Monthly Complaint Report (the “Report”).  The purpose of the Report is, in part, to educate consumers and financial institutions on major consumer issues—which it does by providing a high-level analysis of trends in consumer complaints, focusing on one or two…

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FTC Issues Order Against Debt Relief Company for Alleged Misrepresentations

On February 27, 2017, the Federal Trade Commission (FTC) entered into a stipulated order for permanent injunction and monetary judgment with defendants United Debt Counselors, LLC, a debt relief company, and its principals, banning the defendants from making misrepresentations about financial products and services and requiring the defendants to pay a $9…

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North Carolina Attorney General Secures Over $35 Million In Settlement With Debt Relief Providers

On March 9, 2017, the North Carolina Attorney General (“AG”) announced that it had settled a lawsuit filed in the Wake County, North Carolina Superior Court against three debt relief companies and two individuals.  As a result of the settlement, the court entered an order banning the companies and individuals from advertising or providing debt relief…

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National Debt Relief Provider Reaches $9 Million Settlement with FTC for Deceptive Solicitations

On March 7, the Federal Trade Commission (FTC) announced that the United States District Court for the Eastern District of Texas entered a stipulated order prohibiting a national debt relief provider from making misleading claims about its debt relief services. The court also entered a $9 million judgment against the defendants, with all but…

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CFPB Orders Prepaid Card Service Provider and Processor to Pay $13 Million

On February 1, 2017, the Consumer Financial Protection Bureau (CFPB) announced a settlement with a credit card service provider and a credit card provider over a disruption of service for prepaid credit card consumers. According to the CFPB, the credit card provider marketed its prepaid credit card to consumers nationally as a way to get…

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FTC and Florida AG Announce Settlements in Alleged Fraudulent Debt Relief Scheme

FTC

On November 30, 2016, the Federal Trade Commission (FTC) and the Florida Attorney General (AG) announced several settlements totaling approximately $27 million in an alleged fraudulent credit card debt reduction scheme.  In a set of stipulated orders, all but one defendant agreed to monetary judgments, as well as bans on future telemarketing, selling debt relief services, and credit…

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Q2 2016 Sees Increased Personal and Student Lending Enforcement (Interactive Charts Inside)

For the second quarter of 2016, Consumer Enforcement Watch tracked 46 enforcement actions taken against consumer finance providers. This represents a slight decrease from the 50 enforcement actions that were tracked last quarter, and a decrease from the 56 actions that we tracked in the second quarter of 2015. Approximately two-thirds of…

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CFPB Assesses Largest Fine in Agency's History Against National Bank for Opening Accounts Without Consumers' Consent

On September 8, 2016, the Consumer Financial Protection Bureau (CFPB) announced that, pursuant to a Consent Order, a national bank agreed to make full restitution to consumers and pay the CFPB a $100 million fine because many of its employees allegedly engaged in an illegal practice of opening unauthorized deposit and credit…

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CFPB and National Bank Reach $32.25 Million Settlement Regarding Credit Card Add-On Products

On August 25, 2016, the Consumer Financial Protection Bureau (CFPB) announced an order against a national bank that will require the bank to pay $32.25 million in consumer relief and civil penalties based on practices relating to credit card add-on products.  These practices allegedly violated sections 1031 and 1036(a)(1)(B) of the Consumer Financial Protection Act…

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CFPB Releases 2016 Rulemaking Agenda

On May 18, 2016, the Consumer Financial Protection Bureau (CFPB) announced its Spring 2016 Rulemaking Agenda, setting forth its current initiatives. In its latest installment of the semi-annual update, the Bureau highlighted its recent (or imminent) activity in several high-profile areas, including arbitration and payday lending.  Below are highlights of…

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CFPB Brings Action Against Mississippi Pay Day Lending and Check Cashing Company

On May 11, 2016, the Consumer Financial Protection Bureau (CFPB) announced that it is taking action against a Mississippi-based check cashing and payday lending company and its owner for purportedly “tricking and trapping” customers.  According to the complaint, filed in the U.S. District Court for the Southern District of Mississippi, the defendants…

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Pennsylvania AG Sues Financial Services Company for Defrauding Veterans

On May 5, 2016, the Pennsylvania Attorney General announced the filing of a civil lawsuit in the Clinton County (PA) Court of Common Pleas against an Ohio financial services company and its owner for misleading at least four Pennsylvania consumers, including three military veterans.  The lawsuit states that the company catered specifically to…

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New York Attorney General Files Lawsuit Against Credit Card Transaction Processor

On April 13, 2016, the New York Attorney General announced the filing of a lawsuit against several affiliated companies and individuals who lease credit card transaction processing equipment to small business owners. The Attorney General alleges that the companies engaged in fraudulent and deceptive practices by inducing individuals into signing lease…

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