On September 6, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a lead aggregator over claims the aggregator steered consumers towards lenders who offered installment or payday loans that were illegal in consumers’ states. The consent order claimed that the aggregator sold loan applications to lenders…
On August 21, 2017, the Office of the Comptroller of the Currency (OCC) issued Bulletin 2017-28, providing risk management guidance to lenders offering residential mortgage loans with loan-to-value (LTV) ratios that exceed 100 percent at origination (“high-LTV loans”) in connection with community redevelopment programs. Since the onset of the financial crisis,…
On August 30, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it had filed a stipulated proposed final judgment in the U.S. District Court for the Central District of California in a case against a California-based credit repair company. The lawsuit, which was initially filed in September 2016, alleges that the credit repair…
Last week, the Eleventh Circuit affirmed the Northern District of Georgia’s dismissal of a putative Fair Credit Reporting Act (FCRA) case against Equifax and Transunion. In Pedro v. Equifax, Inc., plaintiff sought to represent a putative class of authorized users of delinquent credit cards who did not have payment obligations…
On August 24, 2017, the Attorney General for the District of Columbia (D.C. AG) announced that his office won a judgment in the D.C. Superior Court against a debt relief provider and its owners. The DC AG alleged that the defendants unlawfully marketed student debt relief services to D.C. consumers. The court…
On August 23, 2017, Massachusetts Attorney General Maura Healey announced that her office had sued one of the nation’s largest federal student loan servicers, alleging that the servicer deprived public servants of relief under the Public Service Loan Forgiveness Program (PSLF), a federal student loan forgiveness program that forgives loans of borrowers that hold public service positions…
On August 10, in Schweitzer v. Comenity Bank, No. 16-10498 (Aug. 10, 2017), a panel of the Eleventh Circuit expanded liability for companies under the Telephone Consumer Protection Act, 47 U.S.C. § 227 et seq. (TCPA). Building on the holding in Osorio v. State Farm Bank, F.S.B., 746 F.3d 1242, 1255 (11th…
On July 25, 2017, the U.S. House of Representatives voted to block the Consumer Financial Protection Bureau’s (CFPB) Arbitration Rule from becoming effective with a vote of 231 to 190. The vote was mostly down party lines and paves the way for the Senate to act to impose its own…
On August 17, 2017, the Consumer Financial Protection Bureau (“CFPB”) announced that it filed a complaint and proposed settlement against an Oregon private equity firm and related entities for aiding a post-secondary education company and its school’s predatory lending scheme. The CFPB alleges that the private equity firm enabled the school…
On August 17, 2017, the Associated Press announced that Minnesota’s Attorney General is suing two lending firms (with the same Nevada address) for allegedly pressuring veterans and senior citizens into signing over large portions of their monthly pensions to cover small loans. According to the complaint, some interest rates were as…
Yesterday, the Ninth Circuit issued its opinion in Robins v. Spokeo, finding that plaintiff Thomas Robins has standing to continue his Fair Credit Reporting Act (FCRA) suit against Spokeo, Inc. In its opinion, a unanimous panel of the Ninth Circuit articulated a two-part concreteness test to determine standing. The court…
On August 4, 2017, the Consumer Financial Protection Bureau (CFPB) published four prototypes of model overdraft disclosure forms the Bureau is testing as part of its broader “Know Before You Owe” efforts. The prototypes are an important indicator that the CFPB is still actively paying attention to issues concerning overdraft…
On August 8, 2017, the Department of Justice (DOJ) announced that a national lender agreed to settle allegations that it violated the False Claims Act. The settlement resolves allegations that the lender originated and underwrote mortgage loans insured by the United States Department of Housing and Urban Development’s (HUD) Federal Housing Administration…
On August 4, 2017, the United States District Court for the Middle District of Pennsylvania denied a student loan servicer’s motion to dismiss claims brought against it by the Consumer Financial Protection Bureau (CFPB), rejecting the servicer’s argument that the claims fail because the CFPB is unconstitutional. In January 2017, the…
On August 10, 2017, the Massachusetts Division of Banks (DOB) announced that it had reached, together with the financial regulators of Connecticut, Idaho, Minnesota, and North Dakota, a settlement with two companies, resolving allegations that their debt collection practices failed to comply with state and federal consumer protection laws, including the Fair Debt…
On August 10, 2017, the New York Department of Financial Services (DFS) announced that it had entered into a consent order with a Missouri-based lender that specializes in mortgage loans guaranteed by the United States Department of Veteran’s Affairs. According to the consent order, the DFS determined that, between 2011 and 2014, the lender failed…
The Federal Trade Commission (FTC) is using consumer complaints in its effort to quell alleged illegal robocalls. On September 1, 2009, the FTC issued rules prohibiting robocalls made without a consumer’s prior written authorization. Yet, the FTC’s research shows that robocalls persist. According to the FTC’s Do Not Call Reported Calls…
On August 8, 2017, the District of Columbia Attorney General (AG) announced that it had reached a settlement with a Florida-based debt relief company and its owner, resolving allegations that their debt collection practices violated District of Columbia consumer protection statutes. According to the AG, the company entered into contracts with…
Last week, the Seventh Circuit affirmed the dismissal of two Fair Credit Reporting Act (FCRA) class actions on Spokeo grounds. The cases, which were consolidated for appeal, were filed by the same plaintiff against two corporate defendants alleged to have provided credit-report disclosures that did not comply with the FCRA. …
On August 2, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a national bank, resolving allegations as to the bank’s allegedly unlawful credit reporting activities. According to the CFPB, the bank violated several federal laws with respect to its reporting practices, including the Fair Credit Reporting Act, 15…