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Category Archives: CFPB Enforcement

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CFPB Orders Indirect Auto Finance and Title Loan Companies to Pay $48.35 Million in Redress and Penalties For Abusive Debt Collection Practices

Posted in Auto Finance, CFPB Enforcement, Debt Collection

The CFPB has entered into a consent order with Westlake Services, LLC, an indirect auto finance company, and its wholly owned subsidiary, Wilshire Consumer Credit, LLC, for alleged deceptive debt collection practices. The consent order requires the companies to provide $44.1 million in redress and balance relief to borrowers and imposes a civil money penalty… More >

CFPB and DOJ announce redlining settlement

Posted in CFPB Enforcement, Fair Lending, Mortgages

Consistent with recent indications from CFPB and Department of Justice officials that more redlining cases would soon be coming, the CFPB and DOJ have announced a proposed consent order with Hudson City Savings Bank to settle allegations that the bank had engaged in a pattern or practice of redlining predominantly Black and Hispanic neighborhoods in its… More >

Atlanta federal district court interprets CFPA standard for “substantial assistance” liability

Posted in CFPB Enforcement, Debt Collection, UDAAP

Earlier this year, the CFPB filed a complaint in Atlanta federal district court targeting an alleged debt collection scam in which not only were the debt collectors named as defendants (Debt Collectors) but three companies involved in providing payment processing services to the Debt Collectors were also named as defendants.  One of those companies processed… More >

CFPB obtains preliminary injunction against debt relief companies

Posted in CFPB Enforcement, UDAAP

A Florida federal district court has entered a preliminary injunction against several companies and an individual who were named as defendants in a complaint filed by the CFPB in August 2015 charging them with violations of the Consumer Financial Protection Act (CFPA) and Telemarketing Sales Rule (TSR). The complaint alleges that the defendants operated debt relief… More >

CFPB lawsuit against pension advance companies could have broader implications

Posted in CFPB Enforcement

A new lawsuit, filed by the CFPB and the New York Department of Financial Services (NY DFS) in a California federal court against two pension advance companies and three of the companies’ individual managers, again demonstrates the aggressive approach taken by both agencies.  The lawsuit follows a consumer advisory issued by the CFPB in March 2015… More >

CFPB enters into consent order with company charged with deceptive health care credit enrollment practices

Posted in CFPB Enforcement, UDAAP

The CFPB has entered into a consent order with Springstone Financial, LLC to settle charges that the company was responsible for alleged deceptive and misleading acts and practices in connection with enrolling consumers in a financing program to pay for dental work.  The consent order requires the company to provide $700,000 in redress to consumers who paid deferred… More >

Auto finance company agrees to change dealer compensation policy to settle CFPB and DOJ fair lending claims

Posted in Auto Finance, CFPB Enforcement, Fair Credit

Earlier this month, American Honda Finance Corporation (AHFC) entered into a settlement with the CFPB and the Department of Justice to resolve charges that it engaged in unlawful discrimination in violation of the Equal Credit Opportunity Act (ECOA).  The settlement includes AHFC’s agreement to change its auto dealer compensation policy, pay $24 million in restitution,… More >

CFPB settles action against provider of student financial aid assistance

Posted in CFPB Enforcement

The CFPB has announced a proposed settlement with Student Financial Aid Services, Inc. (SFAS) to resolve charges that the company engaged in unlawful sales and billing practices in connection with offering fee-based financial aid assistance and preparation services to consumers.  The proposed Stipulated Final Judgment and Order provides for a judgment to be entered against SFAS… More >

More on the CFPB’s administrative law judge job posting

Posted in CFPB Enforcement

We reported earlier this week that the CFPB had recently posted a job opening for an administrative law judge (ALJ) and that the government jobs website indicated that the position was closed.  We saw this as suggesting that the position has been filled. In response to our blog post, Judge James G. Gilbert, Chief Administrative Law Judge with the United… More >

Lead generator files petition to set aside CFPB CID

Posted in CFPB Enforcement

A lead generation company and its employee recently filed a petition with the CFPB to modify or set aside a civil investigative demand (CID). Among the arguments made in the petition for why the CID should be set aside is that the company is neither a “service provider” nor “covered person.”  The company argues that it… More >

CFPB seeks to hire administrative law judge

Posted in CFPB Enforcement

The CFPB recently posted a job opening for an administrative law judge (ALJ).  According to the government jobs website, the position is closed which suggests that it has been filled.  A recent Politico article indicated that the CFPB posted the opening because it has ended its arrangement with the SEC to borrow ALJs.  (The Politico article… More >

OIG seeks improved CFPB approach for notifying prudential regulators of violations by smaller financial institutions

Posted in CFPB Enforcement

The Office of Inspector General for the Fed/CFPB has sent a memorandum to the CFPB, the subject of which is “The CFPB Can Enhance Its Process for Notifying Prudential Regulators of Potential Material Violations.”  The memo follows up on a report issued last month by the Offices of Inspector General for the Fed/CFPB, FDIC, Treasury and… More >

Company that entered into CFPB consent order loses motion to dismiss class action

Posted in CFPB Enforcement, Mortgages

A California federal judge has rejected the attempt of Castle & Cooke Mortgage, LLC, the mortgage company that entered into a consent order with the CFPB in November 2013 to settle charges that it violated the Regulation Z loan originator compensation rule, to dismiss two counts of an amended class action complaint filed against it… More >

CFPB and Florida AG obtain judgments against foreclosure relief companies

Posted in CFPB Enforcement

The CFPB announced that, together with the Florida AG, it has obtained judgments against several Florida companies and their individual operators who were charged in a complaint filed in a Florida federal court with using deceptive marketing practices and collecting illegal advance fees from consumers seeking mortgage relief services.  A default judgment entered against the… More >

CFPB files complaint against companies offering mortgage payment program

Posted in CFPB Enforcement, Mortgages

In a complaint filed yesterday in a California federal court, the CFPB alleges that two related companies offering a biweekly mortgage payment program and their individual owner engaged in deceptive telemarketing acts or practices that violated the Telemarketing Sales Rule and abusive and deceptive acts or practices that violated the Consumer Financial Protection Act.  The complaint seeks… More >

FDIC to host teleconference on complying with the CFPB mortgage rules

Posted in CFPB Enforcement, CFPB General, Federal Agencies

On May 21, 2015, from 2:00pm to 3:30pm, the FDIC’s Division of Depositor and Consumer Protection will host a teleconference as part of its periodic series of events for bankers on important bank regulatory and emerging issues in the compliance and consumer protection area.  According to the announcement, the upcoming teleconference will focus on the… More >

CFPB settles first overdraft opt-in rule enforcement action

Posted in CFPB Enforcement, Overdrafts

The CFPB announced yesterday that it had reached a settlement with Regions Bank regarding claims that the bank unlawfully charged overdraft fees to customers who had not opted-in for overdraft coverage.  The matter is the CFPB’s first enforcement action under the Regulation E rule that prohibits depository institutions from charging overdraft fees on ATM and… More >

CFPB speaks (again) at PLI’s Annual Consumer Financial Services Institute

Posted in CFPB Enforcement, CFPB Exams, CFPB Rulemaking

Key members of the CFPB’s enforcement, regulatory and supervision offices spoke yesterday at PLI’s 20th Annual Consumer Financial Services Institute in Chicago. As was the case during the New York City version which took place on April 6, the session addressed recent developments and upcoming initiatives at the CFPB, and took the form of a… More >

CFPB announces settlement with processors of military allotments

Posted in CFPB Enforcement, Military Issues

The CFPB has announced a settlement with two companies that processed military allotments and were alleged to have charged fees to servicemembers that the companies failed to adequately disclose.  The consent order requires the companies to pay a $3.065 million judgment to be deposited into a fund administered by the CFPB or its agent to be… More >

CFPB targets another mortgage lender for deceptive advertising

Posted in CFPB Enforcement, Mortgages

The CFPB has announced the settlement of an enforcement action against a California-based mortgage lender for alleged deceptive advertising practices, including the use of advertisements that the CFPB claimed falsely led consumers to believe that the company was affiliated with the U.S. government.  The consent order requires the lender to pay a civil penalty of… More >

Why the CFPB’s new lawsuit resembles “Operation Choke Point”

Posted in CFPB Enforcement, Debt Collection

Yesterday, the CFPB announced that it had filed a lawsuit against “the ringleaders of a robo-call phantom debt collection operation, their companies, and their service providers.”  This is the same lawsuit filed in federal district court in Atlanta that we blogged about on Monday, and as we indicated, the service providers named as defendants included payment… More >