Search Results: TILA

FDIC Enters Into $20 Million Consent Order With Debt Settlement Entities

On March 28, 2018, the Federal Deposit Insurance Corporation (“FDIC”) annou​nced settlements with a bank and an affiliated lender (“Defendants”) relating to allegations of deceptive lending practices.  According to the FDIC, the Defendants provided, as “debt-settlement products,” loans to borrowers who were heavily indebted, which loans had settlement fees of up…

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Jury Convicts Payday Lender Owner for Allegedly Fraudulent Payday Lending Scheme

On November 15, 2017, the U.S. Attorney for the Southern District of New York (“​USAO”) announced that a jury has convicted the owner of an alleged fraudulent lending scheme (the “Defendant”) for one count of conspiracy to collect unlawful debts in violation of the Racketeer Influenced Corrupt Organizations Act (“RICO”); one…

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CFPB Lawsuit Targets High-Interest Online Lenders

On April 27, 2017, the Consumer Financial Protection Bureau (CFPB) announced the filing of a suit against four online lenders alleging that the lenders illegally collected debts on invalid loans.  The complaint alleged violations of the Consumer Financial Protection Act (CFPA), 12 U.S.C. §§ 5531(a), 5536(a), and 5564(a), and the Truth in Lending Act (TILA),…

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Mortgage Servicer Enters in to $225 Million Consent Order with California DBO

On February 17, 2017, the California Department of Business Oversight (California DBO) announced that it had entered in to a $225 million consent order with a national mortgage servicer following an investigation by a third-party auditor into loans serviced by the company in California between January 1, 2012 and June 30, 2015.  The servicer had agreed to the audit…

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Ninth Circuit Compels Tribal Lenders to Comply with CFPB Investigative Demand

On January 20, 2017, the Ninth Circuit affirmed a trial court ruling that ordered three tribal lending entities to comply with the Consumer Financial Protection Bureau’s (CFPB) civil investigative demands. The CFPB’s investigation concerns whether small-dollar online lenders or similar persons had engaged in illegal advertising, marketing, or collection practices in…

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CFPB Enters Consent Order with Lender Over Defective Disclosures

On December 20, 2016, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a mid-Atlantic financing company over allegations that the company entered into revolving-credit agreements with consumers without providing adequate disclosures.  The consent order alleged that the company violated the Electronic Fund Transfer Act…

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CFPB Files Lawsuits Against Four Virginia Pawnbrokers for Misstating Loan Charges

On December 19, 2016, the Consumer Financial Protection Bureau (CFPB) announced that it had filed actions against four separate Virginia-based pawnbrokers for alleged violations of the Truth in Lending Act (TILA) and Consumer Financial Protection Act (CFPA). The nearly identical Complaints allege that the pawnbrokers misled consumers by enticing them…

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Second Circuit Finds No Standing, Affirms Summary Judgment on TILA Claims

On November 23, 2016, the Second Circuit issued its opinion in Strubel v. Comenity Bank, a putative Truth in Lending Act (TILA) class action with both standing and substantive TILA implications.  In Strubel, the plaintiff challenged the disclosures Comenity provided in connection with a retail store credit card.  The opinion summarizes the plaintiff’s…

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CFPB Brings Administrative Lawsuits Against Five Arizona Title Lenders

On September 21, the Consumer Financial Protection Bureau (CFPB) announced that it filed five individual administrative lawsuits against Arizona title lenders. Each suit concerns allegations that the title lenders’ online advertisements failed to disclose title annual percentage rates, in violation of the Truth in Lending Act.  Instead, the Bureau alleged, the companies…

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Federal Reserve Set to Update Regulation Z to Add CFPB Rules

On February 19, the Federal Reserve noticed an information collection regarding recent changes to Regulation Z.  The Notice (81 Fed. Reg. 8492) explains that the Federal Reserve is planning to update Regulation Z to include a number of regulatory requirements implemented in the past three years—particularly those promulgated by the…

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Payday Lender Indicted for RICO, TILA Violations

On February 10, the U.S. Attorney for the Southern District of New York announced the unsealing of a criminal indictment charging the owner of and attorney for a payday lending company.  The defendants were charged with violations of the Racketeer Influenced and Corrupt Organizations Act (RICO) and the Truth in…

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FTC Reaches Settlement with Online Payday Lenders Relating to Deception Charges

FTC

On January 5, 2016, the Federal Trade Commission (“FTC”)​ announced that two online payday lenders ​reached a settlement with the FTC to resolve charges that payday lenders illegally charged consumers undisclosed and inflated fees.  As part of the settlement, each company agreed to a penalty of $2.2 million and combined waived $68 million in uncollected consumer…

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