On October 4, 2017, the Consumer Financial Protection Bureau (CFPB) issued an interim final rule amending a provision of Regulation X regarding the timing for mortgage servicers to communicate with borrowers about foreclosure prevention alternatives. On the same date, the CFPB also issued a proposed rule regarding timing requirements for…
As Enforcement Watch reported in late September, the Consumer Financial Protection Bureau (“CFPB”) announced that it had filed a proposed consent judgment in the United States District Court for Delaware to resolve claims relating to the servicing and debt collection activities on a portfolio of about 800,000 student loans. Under the proposed settlement agreement, the student loan trusts…
On September 27, 2017, the Southern District of Florida dismissed a Fair and Accurate Credit Transactions Act (FACTA) suit against Burger King on standing grounds. In Gesten v. Burger King Corp., Case No. 1:17-cv-22541 (S.D. Fla), the Court joined numerous other courts finding that, where a FACTA plaintiff’s only alleged…
Consumer Finance Enforcement Watch has been selected to compete in The Expert Institute’s Best Legal Blog Competition. From a field of hundreds of potential nominees, Consumer Finance Enforcement Watch has received enough nominations to join the one of the largest competitions for legal blog writing online today. Now that the…
On September 29, 2017, the Texas Attorney General (Texas AG) announced that it reached settlement in the form of an Assurance of Voluntary Compliance with a lead generation company that directed business to a debt relief company that the Texas AG sued in 2013 for providing fraudulent and illegal debt-relief services. The…
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…
On September 28, 2017, the United States Attorney’s Office for the Southern District of New York (USAO), along with the U.S. Department of Housing and Urban Development (HUD) and HUD’s Office of the Inspector General (HUD-OIG), announced that they had reached a settlement with a national mortgage lender over alleged…
On September 27, the U.S. Department of Justice (“DOJ”) announced that it had entered into a $760,000 settlement with two affiliated auto finance companies stemming from allegations that the companies violated the Servicemembers Civil Relief Act (“SCRA”), 50 U.S.C. § 3901, et seq., by failing to obtain court orders prior to repossessing vehicles owned…
On September 27, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a real estate settlement services provider for allegedly steering consumers to an affiliated title insurer without disclosing the relationship, an alleged violation of the Real Estate Settlement Procedures Act (RESPA), 12 U.S.C. 2607, and…
On September 18, 2017, the Consumer Financial Protection Bureau (“CFPB”) announced that it had entered into a settlement and proposed consent judgment with a student loan owner and securitizer, and a separate consent judgment with the securitizer’s debt collector. The securitizer has a loan portfolio of approximately 800,000 student loans. According…
On September 19, 2017, the Consumer Financial Protection Bureau (“CFPB”) announced a simultaneous complaint and proposed consent order with a loan brokerage company and two associated individuals (the “Defendants”). The Defendants are alleged to have made misrepresentations concerning the brokerage and the loan terms they offered to potential borrowers. According to the CFPB,…
On September 26, 2017, Massachusetts Attorney General Maura Healey (AG) announced that she sued a Massachusetts used car dealership for allegedly using predatory practices to sell poor quality cars with high cost loans. The AG’s lawsuit asserts that the dealership violated the Massachusetts Consumer Protection Act, G.L. c. 93A, § 4, by…
On September 25, 2017, New York’s Department of Financial Services (DFS) announced that it had entered into a consent order with a payday loan servicer and debt collector over the servicing and collection practices on usurious payday loan debts, resulting in nearly $12 million in relief for affected consumers. Payday loans are illegal in New York, and…
On September 25, 2017, New York’s Financial Services Superintendent announced that the Department of Financial Services (DFS) had entered into a consent order with a payday loan debt collector and a payday loan servicer that serviced and collected on payday loans made to New York consumers that were illegal in New…
On September 12, 2017, the U.S. House of Representatives’ Financial Services Subcommittee on Financial Institutions and Consumer Credit and the Subcommittee on Monetary Policy and Trade conducted a joint hearing titled, “Examining the Relationship Between Prudential Regulation and Monetary Policy at the Federal Reserve.” A link to the videotaped testimony…
On September 22, 2017, Massachusetts Attorney General Maura Healey (AG) announced a settlement with a company to resolve claims that the company used abusive and illegal debt collection practices. The AG’s complaint alleges that the company added hidden, illegal, and unauthorized late fees and charges to consumers’ accounts—including a $25 late…
On September 20, the Federal Trade Commission (FTC) announced that the U.S. District Court for the Central District of California entered summary judgment against two law firms and two individuals for their participation in an allegedly fraudulent mortgage relief scheme. According to the FTC, the law firms misrepresented to consumers that they could obtain monetary recoveries…
The issue of cybersecurity is back in front of Congress in the wake of the news of the data breach at Equifax Inc., which reportedly has affected approximately 143 million consumers. Various industry trade groups, including the National Retail Federation, wrote a letter to Congress to advocate a sweeping uniform…
On September 18, 2017, the Department of Justice (“DOJ”) announced that it had entered into a $907,000 settlement with an auto loan lender and servicer (“Defendant”). In its complaint, filed the same day in the United States District Court for the Northern District of Texas, the DOJ alleged that the Defendant had…
On September 14, 2017, the U.S. District Court for the Southern District of Texas issued an opinion and order against two former mortgage companies and their former president and CEO. The order, which followed a previous jury verdict against the company, awarded the Government nearly $280 million in treble damages under the False Claims Act (FCA), approximately $13 million…