Search Results: Credit, Debit, or Prepaid Card

FTC Announces $10.9 Million Settlement for Credit Card Laundering Scheme

​On February 10, 2021, the Federal Trade Commission (FTC) announced settlements with two payment processing companies and two individuals, resolving claims concerning an alleged credit card laundering scheme perpetrated in violation of the Federal Trade Commission Act (FTC Act), 15 U.S.C. § 53(b), and the Telemarketing and Consumer Fraud and Abuse Act (Telemarketing Act), 15 U.S.C. §§…

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State AGs Announce $4.2 Million Settlement with National Bank for Alleged CARD Act Violations

​On February 8, state ​Attorneys General for North Carolina, Iowa, Massachusetts, New Jersey, and Pennsylvania (State AGs) announced a $4.2 million settlement ​with a national bank to resolve allegations that it overcharged credit card interest for certain customers. According to the settlement agreement, the State AGs conducted a joint investigation into whether, between 2011…

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FTC Reaches Settlement with Two Nevada Companies for Alleged Credit Card Scheme

On January 29, 2021, the FTC announced that it filed a proposed settlement in the District of Nevada with two Nevada-based consulting companies, resolving claims ​that the companies violated the FTC Act, Telemarketing and Consumer Fraud and Abuse Prevention Act, Telemarketing Sales Rule, Credit Repair Organizations Act, and Consumer Review Fairness Act. The FTC alleged that, since…

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FTC Reaches $1.5 Million Settlement with Payment Processor Over Fraud Allegations

FTC

On December 10, 2020, the Federal Trade Commission (Commission) announced that it reached a settlement with a payment processor and its former CEO for alleged violations of the Federal Trade Commission Act (FTCA). The complaint alleges that the payment processor illegally processed more than $93 million in consumer credit card charges related to fraudulent…

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FTC Announces Settlement with Company Who Allegedly Used Robocalls to Target Cash-Strapped Consumers

FTC

On July 24, 2020, the Federal Trade Commission (FTC) announced that it settled charges with the operators of a Florida-based company that allegedly defrauded financially-distressed and often older-adult consumers with deceptive robocalls.  The proposed court order would ban the defendants from selling debt relief services and from all telemarketing based on…

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COVID-19’s Impact on the Credit Card Industry

LenderLaw Watch continues its coverage of the impact COVID-19 has had and will have on various financial services sectors, this week focusing on COVID-19’s impact on credit card issuers.  Although the newly enacted CARES Act (H.R. 748, 116th Cong. (2020)), signed by President Trump into law on March 27, 2020,…

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California DBO Settles with Point-of-Sale Lender Making Illegal Loans

​On January 16, 2020, the California Department of Business Oversight (DBO) announced it had reached a settlement with a point-of-sale lender​ to stop making illegal loans and refund $282,000 in fees it collected from almost 17,000 California consumers. In September 2019, the lender applied to the California DBO for a lender’s license.  Upon review of the lender’s product and information, the California…

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Court Halts Operations of VoIP Service Provider for Allegedly Helping to Promote Credit Card Interest Reduction Scheme

FTC

On December 5, 2019, the Federal Trade Commission (FTC) announced that a federal court in Texas has halted the operations of a Voice over Internet Protocol (VoIP) service provider that allegedly played a key role in robocalling consumers to promote a credit card interest reduction scheme that bilked consumers out…

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FTC and Ohio Secure TRO Against Companies Concerning Alleged Telemarketing Scheme

On July 17, 2019, Ohio Attorney General Dave Yost (Ohio AG) announced that it and the FTC had secured a temporary restraining order from the United States District Court for the Western District of Texas against two companies that allegedly defrauded consumers struggling with credit card debt out of millions of dollars. The complaint alleged that…

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CFPB Announces $11 Million Settlement with National Jewelry Retailer

On January 16, the Consumer Financial Protection Bureau (CFPB)  and the State of New York announced that they had filed a consent order in the U.S. District Court for the Southern District of New York.to settle allegations that a jewelry retailer enrolled customers in credit cards and related products without their consent….

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Florida AG and FTC Obtain $23 Million Judgment in Robocall Enforcement Action

On December 14, the Florida Attorney General (AG) and the Federal Trade Commission (FTC) announced a $23 million federal district court judgment against the owner of an Orlando-based “robocall” operation.  The massive robocall operation tricked consumers into paying upfront fees of $500 to $1500 for false credit card interest-rate-reduction and debt-elimination services,…

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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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