On August 1, 2016, Colorado Attorney General Cynthia H. Coffman announced a settlement of two lawsuits against lenders for targeting the military and other allegedly illegal lending practices. According to the Attorney General, the settlement comes after charges filed against the lenders in 2015, alleging that the lenders used illegal…
On July 29, 2016, the Department of Housing and Urban Development (HUD) announced a settlement with a bank concerning allegations that they denied loan approval to a woman on maternity leave in violation of the Fair Housing Act (FHA). The woman had applied for a home equity line of credit, but the bank allegedly told…
On August 3, 2016, Goodwin filed an amicus brief in the Washington Supreme Court on behalf of the Mortgage Bankers Association and the Consumer Mortgage Coalition. The case—Jordan v. Nationstar Mortgage LLC—involved a challenge to a servicer’s default-servicing practice of rekeying the lock on the front door of seemingly abandoned…
*Editor’s Note: This post originally appeared on our firm site as a client alert. Summary On July 28, the Consumer Financial Protection Bureau (the CFPB) released a summary of proposals it is considering to reform debt collection practices. At the same time, it released a Study of Third Party Debt…
With the end of the Department of Treasury’s Home Affordable Modification Program (HAMP) coming in January 2017, the Consumer Financial Protection Bureau (“CFPB”) has released a set of four principles for financial institutions to use when considering how to help a borrower avoid foreclosure. These principals are intended “to complement ongoing…
On July 28, 2016, the Consumer Financial Protection Bureau (CFPB) released an outline of proposals it is considering as potential elements of a new, comprehensive regulatory scheme to implement the Fair Debt Collection Practices Act, 15 U.S.C. § 1692 (FDCPA). The proposed regulations, if implemented, would represent a major change…
On July 26, the Department of Justice (DOJ) announced that it filed a lawsuit against a regional credit union over alleged violations of the Servicemembers Civil Relief Act (SCRA). The SCRA prohibits lenders from repossessing servicemembers’ vehicles without a court order while servicemembers are on activity military duty. The DOJ alleged in…
Last week, the United States District Court for the District of Columbia rejected a constitutional challenge to rules promulgated by the CFPB. In State National Bank of Big Spring v. Geithner, the plaintiffs (a small Texas bank and other interested parties) challenged the Bureau’s regulatory authority on separation-of-power and recess-appointment…
On July 14, 2016, the FTC announced that, as part of an ongoing crackdown on deceptive collection practices, it reached a settlement with two debt collectors and three companies charged with using illegal collection tactics. As Enforcement Watch previously covered here, the FTC initially brought the action against the companies in October of 2015 for allegedly taking payments…
On July 14, 2016, the CFPB announced that it ordered a bank to pay $10 million in fines for its overdraft service practices. According to the CFPB, the bank’s telemarketing vendor used allegedly deceptive marketing and sales pitches to mislead consumers to sign up for its overdraft service without the consumers’ consent. The overdraft…
Goodwin Procter partner Thomas Hefferon will serve as co-chair of the July 28-29, 2016 conference, and will speak on a panel titled “Fair Lending: Managing and Defending Against Claims of Discriminatory, Predatory, and Abusive Lending and Assessing the Status of ‘Disparate Impact’ in Lending Litigation and Enforcement” on July 29, 2015.
On June 23, 2016, the Office of the Comptroller of the Currency (OCC) hosted a daylong forum, “Supporting Responsible Innovation in the Federal Banking System.” The purpose of the forum was to encourage a dialogue among stakeholders about what framework the OCC should adopt to encourage responsible innovation and provide…
On June 21, the Attorney General for the District of Columbia announced a settlement with a debt collector for alleged violations of the District’s debt collection and consumer protection laws. Specifically, the District alleged that the debt collector unlawfully sought collection of “court costs and legal fees without a supporting…
On June 29, the Consumer Financial Protection Bureau (CPPB) and Department of Justice (DOJ) announced a joint enforcement action against a regional bank for alleged discriminatory mortgage lending in violation of the Equal Credit Opportunity Act (ECOA) and the Fair Housing Act (FHA), filed in the District Court for the…
On June 24, the Arkansas Attorney General (AG) announced a settlement with three entities and two individuals, resolving allegations that the defendants conspired to offer illegal payday loans to consumers online while claiming to be affiliated with a Native American tribe. The complaint, filed in 2013, alleged that the defendants violated Arkansas state law…
On June 30, 2016, the Iowa Attorney General announced a settlement with a for-profit cosmetology college to resolve alleged violations of the Iowa Consumer Fraud Act. The settlement, which took the form of a consent judgment, settled claims that the college engaged in “deceptive, omissive, and unfair practices in marketing,…
On June 21, 2016, the North Carolina Attorney General announced that two online fast cash lenders have agreed to pay more than $9 million in refunds for allegedly illegal loans issued to North Carolina consumers. The settlement stems from a December 2013 complaint alleging that the lenders violated North Carolina usury…
On June 8, 2016, the Michigan Attorney General announced that a Michigan court entered a default judgment and permanent injunction against an automobile title loan company over alleged usurious loans that violated the Michigan Consumer Protection Act. According to the Attorney General, the company charged usurious interest rates on automobile title loans, engaged…
On June 8, 2016, the Department of Housing and Urban Development (HUD) announced it entered into a settlement agreement with a national bank over allegations the bank engaged in discriminatory lending practices in violation of the Fair Housing Act. According to HUD, the bank discriminated against African American, Latino American and…
On June 8, 2016, the Colorado Attorney General announced that several national lenders were ordered to pay approximately $8 million in restitution to Colorado consumers over alleged usurious loans, which violated Colorado’s Consumer Protection Act. The lenders allegedly originated loans with interest rates that reached as high as 355%. In…