Enforcement Watch and Goodwin’s Consumer Financial Services Enforcement Team are excited to announce the arrival of Alli Schoenthal to our team! Alli will reside in our New York office. Alli represents banks, trusts, lenders, government-sponsored enterprises, private equity firms, and loan servicers in consumer finance litigation and enforcement matters. Her practice…
LenderLaw Watch and Goodwin’s Consumer Financial Services Litigation Team are excited to announce the arrival of Alli Schoenthal to our team! Alli will reside in our New York office. Alli represents banks, trusts, lenders, government-sponsored enterprises, private equity firms, and loan servicers in consumer finance litigation and enforcement matters. Her…
On January 15, 2021, the Consumer Financial Protection Bureau (CFPB) announced it had filed suit in the United States District Court for the District of Connecticut against a Connecticut-based mortgage company and three individual defendants for alleged violations of the Truth in Lending Act (TILA), the Fair Credit Reporting Act (FCRA), the Equal Credit Opportunity Act…
On January 14, 2021, Minnesota Attorney General Keith Ellison (Minnesota AG) announced that his office reached a settlement with a California-based student loan debt-relief company that allegedly collected unlawful fees from customers and made misrepresentations to them regarding its ability to forgive student loans. According to the Minnesota AG, the company allegedly made false promises to…
As LenderLaw Watch previously reported, the Office of the Comptroller of the Currency (OCC) issued its final rule on the True Lender doctrine in October 2020, addressing ambiguity in federal law and establishing that a national bank is the “true lender” of a loan when, as of the date of…
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…
On December 30, 2020, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a lender that provided installment loans to consumers affiliated with the military over the lender’s alleged violations of the Military Lending Act (MLA), Electronic Fund Transfer Act (EFTA), and Consumer…
On December 8, 2020, the United States Supreme Court held oral argument in the case of Facebook, Inc. v. Duguid, No. 19-511, concerning the circuit split over what type of equipment qualifies as an “automatic telephone dialing system” (ATDS) within the statutory definition of that term set forth in Telephone…
On December 22, 2020, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a national lender and originator of subprime auto loans over the company’s alleged violations of Section 623(a)(1)(A) of the Fair Credit Reporting Act (FCRA) (15 U.S.C. § 1681-s2(a)) and Regulation V, 12 C.F.R. § 1022.42(a). The…
On December 22, 2020, the Consumer Financial Protection Bureau (CFPB) announced that it had secured a consent order against a national student loan servicer based on its failure to comply with a 2015 consent order issued by the CFPB. Specifically, the company misrepresented the minimum periodic payments owed by consumers on their student loans, misrepresented…
On December 21, 2020, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a remittance transfer provider, with locations in 15 states and the District of Columbia. Remittance transfers are transfers of money by consumers in the United States to individuals living abroad. The consent order states that…
On December 18, 2020, the Consumer Financial Protection Bureau (Bureau) announced that it had entered into a consent order with a mortgage servicing company (and its successor in interest) resolving allegations that the company’s conduct between 2014 and 2018 violated the Consumer Financial Protection Act (CFPA) and Regulation X, the implementing regulations of the…
On December 16, 2020, the Pennsylvania Attorney General (Pennsylvania AG) announced a settlement with a California-based student loan forgiveness company for alleged violations of state consumer protection laws. According to the Pennslyvania AG, the company used false advertising tactics and posted fraudulent customer reviews on the Better Business Bureau website. Further, the company…
On December 11, 2020, the Consumer Financial Protection Bureau (Bureau) and the Arkansas Attorney General (AG) announced that they filed a complaint and proposed stipulated judgment in the U.S. District Court for the Eastern District of Arkansas against a home-security company. The complaint alleges that the company—which provided credit to customers for its products and services—violated the Consumer…
On December 9, 2020, the Consumer Financial Protection Bureau (CFPB) announced that it had filed a complaint against a Missouri-based debt collection company in federal court in the Western District of Missouri. The CFPB alleges the company violated the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §§ 1692e and 1692g and the Consumer Financial…
On November 20, 2020, the Office of the Comptroller of the Currency (OCC) issued a proposed rule with the objective of ensuring banks offer fair access to financial services. Certain banks have received significant political pressure from various for-profit and not-for-profit organizations to deny financial services to customers in certain…
On December 8, 2020, the Consumer Financial Protection Bureau (Bureau) announced that it had entered into a consent order with a New Jersey debt collection company, resolving allegations that the debt collection company violated the Fair Debt Collection Practices Act (FDCPA) and the Consumer Financial Protection Act (CFPA). The debt collection company was engaged…
On December 4, 2020, the Consumer Financial Protection Bureau (CFPB) announced that it filed suit against an online lender that offers single-payment and installment loans to consumers for alleged violations of the Military Lending Act (MLA). The MLA contains protections associated with extensions of consumer credit for active-duty servicemembers, including a maximum allowable annual…
On November 30, 2020 the Federal Trade Commission (FTC) announced that it had reached a settlement with a debt collection company for its “debt parking scheme” (also known as “passive debt collection”) in which the company allegedly placed bogus or questionable debts on consumers’ credit reports in an attempt to coerce them to pay the…
On November 30, 2020, the Consumer Financial Protection Bureau (CFPB) granted a no-action letter to an online loan marketplace company for its artificial intelligence (AI) loan origination and underwriting platform. The company offers an AI-based underwriting model for banks, credit unions, and non-bank lenders to use in originating loans. Consumers provide information to start a loan…