On May 22, 2024, the Massachusetts Attorney General (MA AG) announced it entered into an Assurance of Discontinuance (AOD) with a California-based financing company resolving allegations of violations of the Massachusetts Consumer Protection Act. The MA AG alleged that the company engaged in a “rent-a-bank” scheme, whereby the company partnered with an out-of-state bank in an…
On May 20, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a California-based telemarketer that offered student loan debt relief services resolving allegations that the company charged illegal advance fees and misled student loan borrowers. This telemarketer allegedly claimed to be affiliated with the Department of…
On May 17, 2024, the Federal Deposit Insurance Corporation (FDIC) announced a settlement with an Arkansas bank and nine of its employees, resolving allegations that the bank and the employees violated Section 5 of the Federal Trade Commission Act (FTC Act), Section 8 of the Real Estate Settlement Procedures Act (RESPA), the Fair Credit Reporting Act (FCRA),…
On May 9, 2024, the Consumer Financial Protection Bureau (CFPB) issued a new Issue Spotlight regarding growing problems in the credit card rewards program industry. Credit card rewards programs have become increasingly complex in recent years. Especially for credit cards with high annual fees, a key part of attracting interest…
On May 14, 2024, the Minnesota Attorney General announced that it had filed a lawsuit against a realtor and several companies that he owns, claiming that they used deceptive trade practices to market illegal contracts for deed, in violation of several state and federal laws, including the Truth in Lending Act (TILA), Minn. Stat….
On May 14, 2024, the Minnesota Attorney General announced that it had filed a lawsuit against a realtor and several companies that he owns, claiming that the Defendants used deceptive trade practices to market illegal contracts for deed, in violation of several state and federal laws, including the Truth in Lending Act (TILA), Minn….
In April 2024, the Consumer Financial Protection Bureau (CFPB or Bureau) and the Commissioner for Justice and Consumer Protection of the European Commission (European Commission) announced that three meetings had been convened with senior staff and subject matter experts to discuss “shared priority areas” of concern for consumer financial protection…
On May 7, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a financial technology company, resolving allegations that the company committed unfair acts or practices in violation of the Consumer Financial Protection Act (CFPA), by failing to provide consumers who closed their accounts with timely…
On May 6, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it filed a complaint and two proposed stipulated final judgments to resolve its claims against the National Collegiate Student Loan Trusts (the Trusts) and the Pennsylvania Higher Education Assistance Agency d/b/a American Education Services (PHEAA). The CFPB alleges that the Trusts and PHEAA violated…
On April 24, 2024, the CFPB released its Supervisory Highlights, Mortgage Servicing Edition, (Issue 33, Spring 2024) which provides insight on the CFPB’s current focus in examining mortgage loan servicers. According to the CFPB it “continues to prioritize scrutiny of exploitative illegal fees charged by banks and financial companies, commonly…
The Consumer Financial Protection Bureau (CFPB) recently issued a new procedural rule to streamline how it determines which nondepository institutions it has the authority to supervise. According to the CFPB, the new rule coincides with a change in organizational structure. But it also indicates an affirmative broadening of its regulatory reach….
On April 25, 2024, the FTC announced that it filed a suit against a Washington-based third-party bill payment company and two of its chief executives for engaging in allegedly deceptive and misleading practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), Section 521 of the Gramm-Leach-Bliley Act (GLB Act), 15 U.S.C. 23 § 6821, and…
On April 24, 2024, the California Department of Financial Protection and Innovation (DFPI) announced that it had entered into a consent order with the Higher Education Loan Authority of the State of Missouri (MOHELA), resolving allegations that MOHELA failed to timely provide DFPI with information detailing the contact information of certain Californian student loan…
On February 20, 2024, California Attorney General Rob Bonta issued a letter warning California-chartered banks and credit unions with assets under $10 billion that charging surprise overdraft fees and returned deposited item fees is likely an unfair business practice that violates California’s Unfair Competition Law (UCL), Bus. & Prof. Code,…
On April 23, 2024, the Minnesota Attorney General announced his office had sued a used-car dealer and its owner for violation of multiple state consumer protection statutes. The suit’s allegations include that the dealer “(1) misrepresent[ed] that its used cars are certified when they are not; (2) illegally add[ed] expensive vehicle service contracts…
On April 17, 2024, the New York State Attorney General (NY AG) announced that it entered into an Assurance of Discontinuance (AOD) with a national bank, resolving allegations related to the bank’s debt collection practices. The bank is a nationally chartered bank that issues debit cards, prepaid cards, payroll cards, and gift cards, primarily through third-party servicers, many of whom…
On April 17, 2024, the Consumer Finance Protection Bureau (CFPB) announced that it had entered into a consent order with BloomTech Inc., d/b/a Bloom Institute of Technology (BloomTech), and BloomTech’s CEO, Austen Allred, resolving allegations that the company’s practices with respect to income-share agreements (ISAs) violated various consumer protection statutes. BloomTech, formerly known…
Late last month, the Consumer Financial Protection Bureau (CFPB) issued a new Consumer Financial Protection Circular (Circular) which provides guidance about when a remittance transfer provider may be in violation of the prohibition on unfair, deceptive or abusive acts or practices in the Consumer Financial Protection Act (CFPA) when making…
On April 1, 2024, North Carolina Attorney General Josh Stein filed a complaint against a consumer lender, claiming that the lender charged consumers hidden premiums and fees for add-on products associated with its offering of small dollar personal loans, in violation of the Consumer Financial Protection Act (CFPA), the Truth In Lending Act…
In September 2023, the Consumer Financial Protection Bureau (CFPB) issued guidance on the use of artificial intelligence in issuing credit denials, a prevalent practice among lenders. The CFPB explained that when denying a credit application, lenders must provide a substantive reason behind the denial. The guidance further explains that the…