On July 11, 2017, the United States Department of Housing and Urban Development (HUD) announced that its Mortgagee Review Board had suspended a national mortgage lender from originating and underwriting new mortgages insured by the Federal Housing Administration (FHA). HUD’s Departmental Enforcement Center also banned the lender’s owner from doing business with the federal…
On July 10, 2017, the Consumer Financial Protection Bureau (CFPB) announced the release of its anticipated Arbitration Rule, opening the door for more consumer class actions against financial institutions concerning financial products and services. Many consumer contracts, such as credit card and bank agreements, contain mandatory arbitration clauses. These clauses…
Last week, the District of New Jersey issued a noteworthy opinion in a putative TCPA class action against TD Bank and Target. In Martinez v. TD Bank USA, N.A. et al., 2017 WL 2829601 (D.N.J. June 30, 2017), the court held the defendants were entitled to summary judgment because the…
On July 3, 2017, the United States Department of Housing and Urban Development (HUD), the HUD Office of Inspector General (HUD-OIG), the U.S. Attorney’s Office for the Northern District of Georgia, and the U.S. Attorney’s Office for the Northern District of California announced that they had reached a settlement with a national mortgage lender, resolving…
On June 27, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it filed two complaints and proposed final judgments against four California-based credit repair companies for misleading consumers and charging illegal fees. The CFPB alleged that the companies charged illegal advance fees for credit repair services and misrepresented their ability to repair…
On June 30, 2017, the Attorney General for the Commonwealth of Virginia (Virginia AG) announced that it had entered into a proposed consent order to resolve an action filed in Richmond City Circuit Court against a Virginia-based pawn broker that allegedly assessed excessive fees, made motor-vehicle-secured loans without a title loan license, and charged illegal interest…
One month after the U.S. House of Representatives Financial Services Committee passed the Financial CHOICE Act, H.R. 10, with a 34 to 26 vote down party lines, the full House passed the bill on June 8, 2017 with a 233-186 vote. Once again, the partisan nature of the vote was clear,…
On June 21, 2017, a federal judge in the Western District of Wisconsin accepted a Stipulated Final Judgment and Order (“Stipulated Judgment“) based on an agreement between the CFPB and the bankruptcy trustee of a now defunct mortgage relief law firm. The Stipulated Judgment comes three years after the CFPB…
On June 22, 2017, the New Jersey Office of the Attorney General (“New Jersey AG”) and the New Jersey Division of Consumer Affairs (“New Jersey DCA”) announced a settlement with a Georgia financing company that facilitates on-the-spot financing for home improvements through participating home improvement contractors. The New Jersey DCA opened…
On June 23, 2017, the Federal Trade Commission (FTC) announced that it has filed a complaint in the U.S. District Court for the Western District of North Carolina against a North Carolina debt collection company and its owner, alleging that the defendants took money from consumers for fake or “phantom” debts they did not owe. According…
On June 12, 2017, the U.S. Department of the Treasury issued a 150-page report called for by President Trump’s Executive Order 13772 on Core Principles for Regulating the United States Financial System. The Report, entitled “A Financial System that Creates Economic Opportunities: Banks and Credit Unions,” is the first in a…
On June 16, 2017, the New Jersey Office of the Attorney General (“New Jersey AG”) and the New Jersey Division of Consumer Affairs announced a settlement with a for-profit student loan consolidation service that allegedly operated in the State of New Jersey without a debt-adjuster license. The New Jersey AG brought the action…
On June 7, 2017, the Consumer Financial Protection Bureau (CFPB) issued a Consent Order against mortgage servicer Fay Servicing, LLC (Fay), requiring Fay Servicing to pay $1.15 million to borrowers and to cease activities that the CFPB contended violated the Real Estate Settlement Procedures Act (RESPA), its implementing regulation, Regulation X,…
On May 31, 2017, the Consumer Financial Protection Bureau (CFPB) issued its Monthly Complaint Report, this month’s complaints by consumers aged 62 and older. The CFPB drew its analysis of more than 103,100 complaints from its Complaint Database, which can be found here. The complaint report is an illuminating view…
In the first quarter of 2017, Consumer Enforcement Watch tracked 46 enforcement actions taken against consumer financial service providers. This represents a slight decrease from the 50 enforcement actions taken against consumer financial service providers in Q1 of 2016. 34 of the 2017 Q1 enforcement actions were settlements (with or…
Even a year after it issued its opinion in Spokeo v. Robins, the Supreme Court’s decision on Article III standing continues to be hotly contested. On June 6, 2017, the District of New Jersey cited Spokeo in dismissing an amended Fair and Accurate Credit Transactions Act (FACTA) case. The decision…
On June 7, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a Chicago-based mortgage servicing company, settling allegations that it failed to provide borrowers with the foreclosure protections required by law. According to the CFPB, the mortgage servicer violated federal consumer protection laws in its…
On June 5, 2017, the Federal Trade Commission (FTC) announced that a federal district court had entered its eighth order against the remaining defendants in an illegal robocall ring in which defendants promised to help consumers lower their credit card interest rates. The FTC, in conjunction with the Florida Office of the Attorney…
On May 15, 2017, the U.S. Supreme Court decided Midland Funding, LLC, v. Johnson, No. 16–348, in favor of the debt collectors involved in the case. Specifically, Justice Breyer, writing for the Court, held that the Fair Debt Collection Practices Act, 15 U. S. C. §1692 et seq., (FDCPA), which…
On June 2, 2017, the Florida Attorney General (“Florida AG”) announced that it entered into a consent order with a Florida car dealership and its president following allegations that the dealership and the individual violated the Federal Trade Commission Act (“FTC Act”) and its regulations, specifically 16 C.F.R. § 255.5, and the Florida Consumer…