On July 7, 2015, the FTC announced that it reached two stipulated settlements (available here and here) with payday lenders who allegedly deceived customers by signing them up for loans without their permission and then withdrawing “finance” charges indefinitely. The settlements stem from allegations in a complaint filed last year that defendants “purchase consumers’ sensitive financial information from online lead generators or data…
On Wednesday, June 10, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced a new rule that grants the CFPB the ability to monitor nonbank companies that qualify as “larger participants of a market for automobile financing.” The CFPB simultaneously adopted a separate rule defining certain automobile leases as a “financial…
On June 9, 2015, the Federal Trade Commission (“FTC”) announced that it provided its 2014 Annual Financial Acts Enforcement Report (the “Report”) to the Consumer Financial Protection Bureau (“CFPB”) and the Federal Reserve Board. The 23-page Report, dated May 29, 2015, provided information about enforcement and related activities involving Regulation Z (Truth in…
On June 10, the Federal Trade Commission (“FTC”) announced that it entered into a consent order with an Arkansas car dealer over charges that the car dealer failed to display a “Buyers Guide” on used cars offered for sale. In connection with the settlement, the car dealer agreed to pay…
On June 10, the Federal Trade Commission (“FTC”) announced that it unanimously approved consent orders with two Georgia car title lenders that the FTC charged had failed to disclose important conditions about financing for their title loans. In its complaint, the FTC alleged that the car title lenders violated the…
On June 5, the Federal Trade Commission (FTC) announced that it will mail over $467,000 to 2,653 consumers affected by a scheme whereby a law firm charged up-front fees for mortgage modification and other relief services that were never provided, in violation of Section 5 of the Federal Trade Commission…
On May 21, the Federal Trade Commission (FTC) announced that its “Messaging for Money” enforcement campaign resulted in the U.S. District Court for the Western District of New York issuing a temporary restraining order against a debt collector who, according to the FTC’s complaint filed on May 11, allegedly told consumers via text messages that legal actions had been filed…
On May 21, the Federal Trade Commission (FTC) announced that its “Messaging for Money” enforcement campaign resulted in the U.S. District Court for the Western District of New York issuing a temporary restraining order against a debt collector who allegedly sent misleading text messages trying to trick consumers into telephoning the company. The FTC’s complaint, filed on May…
On May 21, the Federal Trade Commission (FTC) announced that its “Messaging for Money” enforcement campaign resulted in the U.S. District Court for the Northern District of Georgia issuing a temporary restrining order against a debt collecter who allegedly sent threatening text messages to consumers. The FTC’s complaint, filed on May 11, alleged…
On May 15, the Federal Trade Commission (FTC) announced that a settlement was reached against “a company that deceptively advertised its add-on biweekly auto payment plan” for allegedly violating the FTC Act, 15 U.S.C. Section 45, et seq. The Complaint alleged that the payment liaison company deceptively pitched consumers a…
On April 30, 2015, the FTC announced that a Federal Court entered a preliminary injunction against a regional mortgage relief company over claims the company falsely represented to consumers that they could obtain mortgage modifications. The company allegedly represented that it was associated with various federally-approved mortgage relief programs, and…
The mortgage servicing industry remains under scrutiny, as evidenced by the recent joint enforcement action against Green Tree Servicing, LLC by the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC). In a joint complaint filed in Minnesota, the regulators allege that Green Tree, through its collection activities…
The Consumer Financial Protection Bureau (“CFPB”) announced that it and the Federal Trade Commission (FTC) entered into a Proposed Consent Order with a national mortgage servicing company over allegations that its loss-mitigation activities violated the Federal Trade Commission Act (“FTCA”), the Consumer Financial Protection Act (“CFPA”), the Fair Debt Collection Practices…
On April 10, the Federal Trade Commission (FTC) announced that the U.S. District Court for the Central District of California had issued a temporary restraining order against a company offering mortgage-relief services to borrowers in financial trouble. The FTC’s complaint, filed on March 31, alleged that the company violated Section 5(a)…
On January 30, 2015, the FTC announced a settlement with two car title lenders for deceptive advertising in connection with offering consumers 0% car loans. The Commission asserted the lenders deceptively advertised 0% interest rates without disclosing material loan conditions necessary for borrowers to qualify for the interest rate, and…
On January 21, 2015, the FTC announced that it had filed a complaint in the U.S. District Court for the Eastern District of Texas against Commercial Recover Systems, Inc. (CRS), a debt collector, for illegally threatening consumers with false claims and threatening consumers that they would be faced with legal…
On January 16, 2015, the FTC announced that it reached a settlement with two online payday lenders for allegedly misrepresenting the cost of loans to consumers in violation of Section V of the FTC Act. The companies were among a group of payday lenders that were sued by the FTC…
On September 10, 2014, the Federal Trade Commission (FTC) posted a comment in response to the Consumer Financial Protection Bureau’s (CFPB) request for information regarding the use of mobile banking services and products specifically utilized by economically vulnerable or underserved consumers. After briefly articulating some of the benefits of mobile…
Online shopping is widespread, and by now, most retailers have tailored their websites to ensure consumers are fully aware of their privacy, security, and dispute resolution rights and liabilities in buying products online. However, as retailers and other companies increasingly launch mobile applications to allow their customers to purchase items…
The Federal Trade Commission (FTC) recently announced a $5.5 million monetary and injunctive settlement with auto lender Consumer Portfolio Services, Inc. (CPS) concerning allegations that the company used illegal tactics in servicing and collecting consumers’ auto loans, and failed to adopt proper quality controls, in violation of Section 5 of…