On May 6, 2022, the Federal Trade Commission (FTC) announced that, at its request, the U.S. District Court for the Middle District of Florida had issued a temporary restraining order (TRO), effectively shutting down a credit repair operation. In the FTC’s complaint, it alleged that the company charged consumers hundreds of dollars for credit repair services that…
On April 29, 2022, the Consumer Financial Protection Bureau (CFPB) announced that it reached a settlement with the CEO of a student loan debt relief company to resolve alleged violations of the Telemarketing Sales Rule (TSR), 16 C.F.R. Part 310, and the Consumer Financial Protection Act of 2010 (CFPA), 12 U.S.C. §§ 5531(a),…
On April 21, 2022, the Consumer Financial Protection Bureau (CFPB) announced a joint enforcement action with the New York Attorney General (NY AG) against one of the largest international remittance providers in the United States. The seven-count complaint, filed in U.S. District Court for the Southern District of New York, challenges the Dallas-based company’s remittance…
On April 12, 2022, the Consumer Financial Protection Bureau (CFPB) announced that it had filed a lawsuit in federal court against TransUnion, two of its subsidiaries, and its longtime executive for failing to implement requirements of the CFPB’s 2017 law enforcement order to TransUnion, and for violating Regulation V, which…
On April 15, 2022, the Federal Trade Commission (FTC) announced that it obtained a permanent injunction against an Illinois-based, offshore, for-profit medical school for deceptive marketing practices. In its complaint and stipulated order filed same-day in the U.S. District Court for the Northern District of Illinois, the FTC alleged that the school violated the Telemarketing Sales Rule (TSR) when…
On April 7, 2022, the Consumer Financial Protection Bureau (CFPB) announced it is proposing a rule that would assist survivors of human trafficking in achieving financial independence. The proposed rule would aid survivors of human trafficking seeking to open bank accounts, access credit, and gain employment, by preventing credit reporting…
On April 12, 2022, the Consumer Financial Protection Bureau (CFPB) announced that it filed a lawsuit against TransUnion and the company’s former executive. The complaint, filed in the U.S. District Court for the Northern District of Illinois, alleges that TransUnion violated a 2017 CFPB consent order which resolved allegations that the company deceptively marketed credit scores…
On April 5th, Goodwin attorneys hosted a webinar discussing the Consumer Financial Protection Bureau’s (CFPB) changes to its supervisory and enforcement priorities with respect to unfair, deceptive, or abusive acts or practices (UDAAPs) under the Consumer Financial Protection Act (CFPA). To recap what was discussed: Download our presentation materials. Watch…
On April 1, 2022, the Federal Trade Commission (FTC) announced that it reached a settlement with a group of Illinois-based auto dealers to resolve allegations that they had violated Sections 13(b) and 19 of the Federal Trade Commission Act (FTCA), 15 U.S.C. § 53(b), 57b, the Truth in Lending Act (TILA), 15 U.S.C. §§ 1601-1666j,…
On March 30, 2022, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a student-loan servicer for alleged deceptive acts and practices in violation of the CFPA, 12 U.S.C. §§ 5531(a), 5536(a)(1)(B). The CFPB alleged that the servicer made deceptive statements to student loan borrowers and misrepresented their…
On March 1, 2022, the Consumer Financial Protection Bureau (CFPB) issued a report titled Medical Debt Burden in the United States (Report) highlighting the complicated and burdensome nature of the medical billing system in the United States. In the Report, the CFPB attributes its heightened interest in medical debt collections…
On March 21, 2022, the Department of Justice (DOJ) announced that it obtained a permanent injunction against a credit repair company and its CEO, barring the company from making representations that it can improve consumers’ credit scores. The injunction was issued by the United States District Court for the Southern District of Texas in relation…
On March 21, 2022, the Federal Trade Commission (FTC) announced that it had obtained an injunction halting a Texas-based credit repair operation. The company allegedly obtained millions of dollars from consumers by falsely claiming to consumers the company could remove negative information from credit reports. The company would then allegedly file fake identify theft reports to remove…
On March 4, 2022, the California Department of Financial Protection and Innovation (DFPI) issued a reminder to its financial institution licensees regarding their obligations in light of the Russian invasion of Ukraine: comply with U.S. sanctions on Russia, and employ safeguards to protect against attempts to use virtual currency transfers…
On March 11, 2022, the U.S. Attorney’s Office (USAO) for the Eastern District of Virginia filed a consent order and settlement with a Virginia-based credit union for alleged violations of the Servicemembers Civil Relief Act (SCRA). The lawsuit, filed in U.S. District Court for the Eastern District of Virginia, alleged that the defendant unlawfully charged…
On March 9, 2022 the Arizona Attorney General (AG) filed a proposed consent judgment with a California-based lender and its corporate affiliates in Arizona state court. The operative complaint, filed May 7, 2020, alleged that the defendants violated the Arizona Consumer Fraud Act, A.R.S. § 44-1521, et seq., and state usury laws, by making…
On February 18, 2022, the Consumer Financial Protection Bureau (CFPB) issued a Compliance Bulletin and Policy Guidance (Bulletin) regarding the servicing of Federal student loans for borrowers who may be eligible under the recently-issued Public Student Loan Forgiveness (PSLF) Waiver. The CFPB announced that it will be closely reviewing student…
Goodwin’s Consumer Financial Services Enforcement & Investigations and Litigation practices are once again proud to present our annual Consumer Finance Year In Review. Industry regulators staked out a clear intent to return to normal, rescinding pandemic-specific policies and letting go of relaxed enforcement. Reviewing the key developments and events in…
On January 26, 2022, the Consumer Financial Protection Bureau (CFPB) issued a Request for Information Regarding Fees Imposed by Providers of Consumer Financial Products or Services (RFI). In the RFI, the CFPB seeks public feedback regarding fees that are not subject to competitive pricing in order to assist the CFPB…
On February 8, 2022, the Massachusetts Attorney General’s Office (Massachusetts AG) announced that it entered into a settlement agreement with a lender concerning its subprime auto loan disclosure and debt collection practices. The Massachusetts AG filed an assurance of discontinuance in Suffolk County Superior Court alleging that the lender failed to provide consumers with adequate disclosures regarding how deficiencies…