On September 10, the New York Office of the Attorney General (NY AG) announced a settlement with a state bank to resolve claims of discriminatory lending in violation of the Fair Housing Act (FHA) and state and local law. The NY AG alleged that the bank engaged in unlawful redlining by failing…
On September 10, Kentucky Attorney General (KY AG) Jack Conway announced a settlement with a for-profit college, resolving claims that the school violated the state Consumer Protection Act. The state alleged that the college violated the statute by denying students financial aid to purchase textbooks at bookstores other than its own; misrepresenting…
On September 9, the District of Columbia Attorney General announced that it filed a complaint in D.C. Superior Court against a debt-purchasing company, its wholly-owned subsidiary, and their principal, for violations of the District’s debt collection and usury laws. The complaint alleges that the company purchased loans from a company that has since gone out…
On September 1, 2015, North Carolina Special Court Superior Judge Gregory P. McGuire issued a preliminary injunction barring a North Dakota-based online fast cash lender from advertising, lending, and collection activity in the state of North Carolina. The preliminary injunction bars the lender and its affiliated companies from advertising, offering or entering into contracts to…
On August 31, 2015, the owner of a now-defunct New Jersey title company pleaded guilty to charges of second-degree theft and second-degree misconduct by a corporate official for failing to make required disposition of settlement funds. The investigation was spearheaded by the New Jersey Division of Criminal Justice Financial & Computer Crimes…
On August 19, 2015, the New York Attorney General’s Office announced an interim agreement with a subsidiary of a national banking organization over allegations that the bank charged improper fees on customer’s inactive accounts. The bank managed consumer investment accounts and charged a variety of fees for account management services….
On August 18, 2015, the Oregon Attorney General’s Office and the Oregon Department of Consumer and Business Services announced that they filed a lawsuit against a regional automobile loan company. The company advertised car title loans online. When consumers completed the online applications, the company allegedly deceived them into signing…
On August 17, 2015, the North Dakota Attorney General’s Office announced it entered a cease and desist order against a regional consumer credit services company. According to the Attorney General, the company solicited business using illegal robocalls that promised interest rate reductions and other loan modification services. The company allegedly called…
On August 13, 2015, the Ohio Attorney General announced that it had filed a complaint against several loan modification companies that allegedly misrepresented to Ohio consumers the nature of their services. The complaint alleges that the companies violated the Ohio Consumer Sales Practices Act and the Ohio Debt Adjuster’s Act by representing…
The Consumer Financial Protection Bureau (CFPB) has set its sights on debt collection practices again. In April, we wrote about the CFPB’s $63 million settlement with a mortgage servicer, Green Tree Mortgage, in part for Green Tree’s alleged treatment of mortgage debt. On July 8, 2015, the CFPB once again demonstrated it was…
On July 28, the North Carolina Attorney General announced that it obtained a default judgment against a mortgage broker and its president in North Carolina Superior Court. The Attorney General brought claims against the defendants under the North Carolina Unfair and Deceptive Trade Practices Act, N.C. Gen. Stat. § 75-1.1. The Attorney General alleged that the…
On July 17, 2015, the Attorney General for the State of Colorado (“Colorado AG”) filed a lawsuit in Denver District Court alleging that a retailer and its related companies repeatedly violated Colorado’s consumer lending laws concerning credit extended to military servicemembers. The action is the second lawsuit filed by the Colorado AG in the…
On July 13, 2015, Pennsylvania Attorney General Kathleen G. Kane announced a settlement with two Philadelphia-based mortgage loan modification companies following an investigation by the states’ Bureau of Consumer Protection. According to the Attorney General’s announcement, the Bureau initiated the investigation as a result of consumer complaints filed against the companies for,…
The Consumer Financial Protection Bureau’s recent action against two credit card vendors regarding credit monitoring and identity theft protection services is a reminder of the legal risks associated with certain add-on products. The July 1 settlement, in which the CFPB found that the vendors misled customers about the benefits of…
On July 8, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced that claims concerning a bank’s alleged debt collection practices in violation of the Consumer Financial Protection Act (“CFPA”) had been settled for over $200 million. According to the consent order, the bank “sold to debt buyers certain accounts that were inaccurate, settled, discharged…
On June 23, 2015, the West Virginia Attorney General announced a settlement with an automobile title loan and debt collection company over claims the company engaged in abusive debt collection practices. According to the West Virginia Attorney General, the company repeatedly called consumers at inconvenient times regarding their delinquent loan payments and…
On June 22, 2015, the Maryland Attorney General announced a settlement with two regional mortgage and credit consulting companies and their sole owner over claims the companies made false representations regarding their ability to obtain mortgage approval for consumers, solicited illegal advance fees, and engaged in credit counseling without the…
On May 29, 2015, the United States District Court for the Southern District of Florida granted the Consumer Financial Protection Bureau (“CFPB”) and the State of Florida a final default judgment against a Florida Foreclosure Relief Company and its corporate affiliates based on the company’s failure to answer or otherwise…
On May 22, 2015, the Michigan Attorney General (“AG”) and its Homeowner Protection Unit filed charges in Oakland County’s 48th District Court against a Michigan mortgage company and its owner alleging that the owner and mortgage company engaged in a scheme to defraud borrowers by promising to modify mortgages for…
On May 20, 2015, Ohio Attorney General Mike DeWine, along with attorneys general of thirty other states (“the State AGs”), announced a $6,000,000 settlement with three major credit reporting agencies (“CRAs”). According to the announcement and the Settlement Agreement, the settlement is a culmination of a multistate investigation that the…