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Category Archives: CFPB Enforcement

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CFPB announces consent order with buy-here pay-here used car dealer

Posted in Auto Finance, CFPB Enforcement

The CFPB has announced that it has entered into a consent order with a Colorado buy-here pay-here used car dealer to settle charges that the dealer’s sales and advertising practices violated the Truth in Lending Act and the Consumer Financial Protection Act prohibition of unfair, deceptive, or abusive acts or practices.  The consent order requires the dealer… More >

CA federal court refuses to dismiss CFPB lawsuit against online lending companies alleging UDAAP violations based on state law violations

Posted in CFPB Enforcement, Payday Lending, UDAAP

A federal district court has refused to dismiss the lawsuit filed by the CFPB in December 2013 against CashCall, several related companies and their principal, which asserted UDAAP violations based on the defendants’ efforts to collect loans that were purportedly void in whole or in part under state law.  The companies allegedly funded, purchased, serviced… More >

CFPB urges federal district court to disclose names of plaintiffs filing lawsuit against CFPB

Posted in CFPB Enforcement

In October 2015, the D.C. federal district court ruled that the plaintiffs’ names should be redacted in all documents filed in a lawsuit against the CFPB initiated by the plaintiffs.  The plaintiffs are a group of businesses and an individual who provide services related to consumer credit counseling and are under investigation by the CFPB. … More >

CFPB denies petition to modify CID

Posted in CFPB Enforcement, Prepaid Cards

On December 2, 2015, the CFPB denied a petition for modification of a Civil Investigative Demand (CID) filed by UniRush, LLC.  In doing so, the CFPB reinforced its view that such petitions are disfavored.  However, in denying the petition, the CFPB actually gave UniRush the relief it sought – additional time to provide a proposed… More >

Congressional report chronicles and criticizes CFPB auto finance ECOA enforcement activity

Posted in Auto Finance, CFPB Enforcement, Fair Credit

Republican members of the House Financial Services Committee recently released a report, prepared by the Republican Staff of the Committee, which chronicles in detail the controversial automotive ECOA enforcement initiative of the CFPB with respect to what it characterizes as “dealer markup.”  The highly critical nature of the report is encapsulated by its title, which… More >

CFPB brings administrative action against online lender

Posted in CFPB Enforcement

The CFPB announced earlier this week that it has initiated an administrative action against a Delaware-based online lender and its CEO for alleged violations of Truth in Lending Act, the Electronic Fund Transfer Act (EFTA), and the CFPA’s UDAAP prohibition.  The announcement is unusual since it has not been the CFPB’s typical practice to announce an administrative action… More >

Former senior CFPB enforcement attorney James Kim joins Ballard Spahr

Posted in CFPB Enforcement

I am pleased to introduce my new colleague James Kim, an experienced financial services litigator and regulatory attorney, who recently served as a senior enforcement attorney with the CFPB. While at the CFPB, James led nationwide investigations involving consumer credit, mobile financial services, emerging payment systems, mortgage origination, and debt collection.  He was lead counsel… More >

CFPB Revises Supervisory Appeals Process

Posted in CFPB Enforcement, CFPB Exams, CFPB General

As we wrote last week, the CFPB recently published a Fall 2015 Supervisory Highlights which included a summary of changes that have been made to the CFPB’s supervisory appeals process. The original supervisory appeal process was published three years ago in CFPB Bulletin 2012-07. The revised supervisory appeals process incorporates a number of changes. (Note… More >

CFPB announces consent order with employment background screening report providers

Posted in CFPB Enforcement, Credit Reports

The CFPB recently announced that it has entered into a consent order with two affiliated companies that generate and provide employment background screening reports.  The consent order settles charges that the companies, which the CFPB’s press release describes as “two of the largest background screening report providers in the United States,” violated FCRA requirements for… More >

CFPB issues Fall 2015 supervisory report

Posted in CFPB Enforcement, CFPB Exams

In its Fall 2015 Supervisory Highlights, which covers supervision work generally completed between May and August 2015, the CFPB highlights legal violations resolved using non-public supervisory actions involving consumer reporting, debt collection, student loan servicing, and mortgage origination and servicing.  The report includes a discussion of targeted ECOA reviews and an announcement that the CFPB has… More >

Director Cordray defends CFPB authority to investigate college accrediting organization

Posted in CFPB Enforcement

Director Cordray is reported to have defended the CFPB’s authority to investigate a college accrediting organization at a recent Politico event. On October 8, 2015, the CFPB issued a decision and order denying the petition of the Accrediting Council for Independent Colleges and Schools (ACICS) to modify or set aside the CID issued by the… More >

The Five Stages of Online Lead Generation

Posted in CFPB Enforcement, CFPB General, FTC, Hot Issues, Lead Generation

On October 30, the FTC presented a workshop on lead generation entitled Follow the Lead. Online lead generation is an area receiving increased regulatory scrutiny by the FTC and other regulators, including the CFPB. Over the next several days, we will be presenting a series of posts highlighting key issues in the industry and likely… More >

Lawmakers seek rescission of CID issued to college accrediting organization

Posted in CFPB Enforcement

Senator Lamar Alexander and Representative John Kline sent a letter to Director Cordray on October 23, 2015 requesting that he “immediately rescind the issuance of a civil investigative demand to the Accrediting Council for Independent Colleges and Schools (ACICS) and halt any other planned investigatory actions regarding accreditors or the accreditation of institutions of higher… More >

CFPB sues company and owner for alleged student financial aid scam

Posted in CFPB Enforcement, Privacy, UDAAP

A new lawsuit filed by the CFPB in a California federal district court alleges that the defendants, a company and its individual owner, are engaged in a nationwide student financial aid scam.  In addition to injunctive relief, the complaint seeks redress for harmed consumers and civil money penalties. According to the CFPB’s complaint, the defendants contacted… More >

Beating a dead horse: CFPB announces default judgment against Corinthian

Posted in CFPB Enforcement, Student Loans

The CFPB announced that it has obtained a final default judgment against Corinthian Colleges, Inc. from the Illinois federal court in which it sued Corinthian in September 2014.  In May 2015, Corinthian filed a petition under Chapter 11 of the Bankruptcy Code and in August 2015, the bankruptcy court entered an order confirming a liquidation… More >

Federal district court issues ruling on confidentiality in CFPB investigations

Posted in CFPB Enforcement

The D.C. federal district court recently ruled that the plaintiffs’ names should be redacted in all documents filed in a lawsuit against the CFPB initiated by the plaintiffs.  The plaintiffs are a group of businesses and an individual who provide services related to consumer credit counseling and are under investigation by the CFPB.  The ruling represents… More >

Transitional period and initial supervisory practice over TRID

Posted in CFPB Enforcement, CFPB Rulemaking, Federal Agencies, Hot Issues, Mortgages, TILA / RESPA

The CFPB sent industry trade groups a letter on October 1, 2015 to address the approach of the FFIEC member agencies during the initial months following the implementation of the TILA-RESPA Integrated Disclosure (TRID) rule on October 3, 2015. In the letter, the CFPB noted that it and the other FFIEC member agencies recognized the… More >

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 >