On September 29, 2022, the Consumer Financial Protection Bureau (CFPB) announced that it filed suit in the United States District Court for the Southern District of New York against an online lender and 38 of its subsidiaries for alleged violations of the Military Lending Act (MLA), 10 U.S.C. § 987, and its implementing regulation, 32…
On September 28, 2022, the Consumer Financial Protection Bureau (CFPB) announced that it ordered an Alabama bank to pay over $190 million to resolve allegations that it charged its customers surprise overdraft fees between August 2018 and July 2021. The CFPB alleges that the bank was charging consumers surprise overdraft fees, known as authorized-positive fees, on…
On June 29, 2022, the Massachusetts Attorney General’s Office announced that it had resolved allegations that a motor vehicle title lender made illegal loans to customers and repossessed cars to collect payments, with a settlement agreement that requires the lender to pay over $900,000 in redress to consumers. The Attorney General alleged that the motor…
On May 6, 2022, the Federal Trade Commission (FTC) announced that, at its request, the U.S. District Court for the Middle District of Florida had issued a temporary restraining order (TRO), effectively shutting down a credit repair operation. In the FTC’s complaint, it alleged that the company charged consumers hundreds of dollars for credit repair services that…
On March 21, 2022, the Federal Trade Commission (FTC) announced that it had obtained an injunction halting a Texas-based credit repair operation. The company allegedly obtained millions of dollars from consumers by falsely claiming to consumers the company could remove negative information from credit reports. The company would then allegedly file fake identify theft reports to remove…
On November 5, 2021, the Illinois Attorney General’s Office (Illinois AG) announced a settlement with three online payday lending lead generators to resolve allegations that the companies violated Illinois state lending laws. The Illinois AG alleged that the lead generators violated state lending laws by generating payday loan leads without a license…
On October 21, 2021, the Consumer Financial Protection Bureau (CFPB) announced that it has issued orders to collect information about the business plans and practices of multiple large technology companies operating payment systems in the United States. Notably, these orders were issued pursuant to the CFPB’s rulemaking authority under Dodd-Frank Section 1022, rather than its…
On September 1, 2021, the Massachusetts Attorney General (“Massachusetts AG”) announced that an auto lending company had agreed to pay more than $27 million to resolve claims that it engaged in unfair and deceptive auto loan practices. The Massachusetts AG alleged that the company made high interest auto loans to borrowers, despite the…
On July 21, 2021, the Mississippi Attorney General announced that it had reached a settlement with a national auto lender to resolve claims that the company placed borrowers into auto loans with a high probability of default. The Attorney General also alleged that the auto lender engaged in aggressive collection practices in violation…
On July 12, 2021 the Consumer Financial Protection Bureau (CFPB) announced that a consent order had been reached with an Atlanta-based non-bank lending company that would require the company to cancel up to $9 million in loans for consumers, resolving allegations that the fintech company violated the Consumer Financial Protection Act (CFPA) by originating and servicing unauthorized loans….