Goodwin Procter partner and chair of the firm’s Consumer Financial Services Litigation Practice, Thomas Hefferon, will serve as the conference co-chair and speak on a panel titled “Consumer Finance Class Action Litigation and Settlement Trends and New and Emerging Procedural Considerations: Certification and Other Procedural Developments, Offers of Judgment/Full Relief,…
On July 21, 2015, the Consumer Financial Protection Bureau (“CFPB”) issued a consent order requiring a national bank and its subsidiaries to provide roughly $700 million in consumer relief due to the bank’s practices relating to its credit card services and add-on products. The consent order states that a CFPB review of the bank’s practices…
On July 17, 2015, the Attorney General for the State of Colorado (“Colorado AG”) filed a lawsuit in Denver District Court alleging that a retailer and its related companies repeatedly violated Colorado’s consumer lending laws concerning credit extended to military servicemembers. The action is the second lawsuit filed by the Colorado AG in the…
On July 9, 2015, the CFPB published a set of Consumer Protection Principles it believes should guide the financial industry in the development of newer, faster methods of payment. These Principles, though merely suggestions, may help members of the financial industry anticipate the expectations of their regulators and develop new…
On July 10, 2015, the Federal Communications Commission (FCC) released its TCPA Omnibus Declaratory Ruling and Order. We wrote about this order on June 29, previewing the FCC’s focus on consumers’ ability to opt out of certain calls, its reiteration of its definition of what constitutes an autodialer, and its…
On July 15, the Consumer Financial Protection Bureau (“CFPB”) and the Department of Justice (“DOJ”) announced that claims concerning an indirect auto finance company’s alleged discriminatory lending practices were settled as part of a consent order requiring $24 million in restitution payments to borrowers and changes to the lender’s dealer compensation system. The consent order alleges…
On July 13, 2015, Pennsylvania Attorney General Kathleen G. Kane announced a settlement with two Philadelphia-based mortgage loan modification companies following an investigation by the states’ Bureau of Consumer Protection. According to the Attorney General’s announcement, the Bureau initiated the investigation as a result of consumer complaints filed against the companies for,…
On July 14, 2015, the U.S. Attorney for the Southern District of Florida announced that the owner of a Miami-area mortgage company, his business partner, and a senior mortgage underwriter each pleaded guilty to conspiracy to commit wire fraud affecting a financial institution. As part of the owner’s plea, he will forfeit $8…
On June 18, the Federal Housing Administration provided lenders with a new Defect Taxonomy for Single Family Housing Loans, or Loan Quality Assessment Methodology. It has been working on the new taxonomy for almost a year, and the final product is very similar to what it presented for comment in September…
The Consumer Financial Protection Bureau’s recent action against two credit card vendors regarding credit monitoring and identity theft protection services is a reminder of the legal risks associated with certain add-on products. The July 1 settlement, in which the CFPB found that the vendors misled customers about the benefits of…
On July 8, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced that claims concerning a bank’s alleged debt collection practices in violation of the Consumer Financial Protection Act (“CFPA”) had been settled for over $200 million. According to the consent order, the bank “sold to debt buyers certain accounts that were inaccurate, settled, discharged…
On July 8, 2015, the Federal Trade Commission (FTC) announced that settlements were approved against companies and individuals who allegedly operated a fraudulent debt collection scheme that targeted Spanish-speaking consumers. According to the complaint, the defendants cold called Spanish-speaking consumers nationwide, and falsely held themselves out to be government officials seeking to collect a debt…
On July 8, 2015, New York Attorney General Eric T. Scheiderman announced that a court order was obtained that permanently bars a consumer debt collection agency from operating as a debt collector and further requires payment of $550,000 in consumer restitution, civil penalties, and costs. The order was signed following a…
On July 7, the Federal Trade Commission (FTC) announced that a federal court entered a preliminary injunction halting an alleged nationwide debt relief telemarketing scam and freezing the defendants’ assets. The FTC claims that the defendants millions from consumers. The complaint, brought by the FTC and Florida Attorney General, alleged that the defendants contacted consumers…
On July 7, 2015, the FTC announced that it reached two stipulated settlements (available here and here) with payday lenders who allegedly deceived customers by signing them up for loans without their permission and then withdrawing “finance” charges indefinitely. The settlements stem from allegations in a complaint filed last year that defendants “purchase consumers’ sensitive financial information from online lead generators or data…
On June 22, 2015, the US Attorney’s office for the Eastern District of Pennsylvania filed an information charging Adrian Rubin of Jenkintown, PA, with: (1) one count of conspiracy to violate RICO, 18 U.S.C. § 1962(d); (2) one count of conspiracy to commit mail fraud and wire fraud, 18 U.S.C. §…
For the second time in recent weeks, the Consumer Financial Protection Bureau (CFPB) delayed the launch of the new integrated disclosures for residential mortgage loans under the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA). The launch date, now set for Saturday, October 3, was announced…
On July 1, 2015, Governor Cuomo announced a student loan debt relief provider was ceasing operations following an investigation by the Student Protection Unit of the Department of Financial Services. The company allegedly engaged in misleading and deceptive advertising as well as other improper practices. The company claimed it could…
The Consumer Financial Protection Bureau (“CFPB”) took action against two credit card vendors, entering into proposed consent orders regarding the companies’ offerings of allegedly unlawful add-on products. Credit card companies offer consumers “add-on” services, such as credit monitoring or identity theft protection for a monthly or annual membership fee. Following an…
On Monday, June 29, 2015, the Florida Attorney General and the Federal Trade Commission (“FTC”) obtained an ex parte temporary restraining order from a federal court for the Middle District of Florida to shut down the operations of a Florida corporation operating in violation of the FTC’s Telemarketing Sales Rule. Under the Telemarketing Sales…