On June 12, the U.S. District Court for the Northern District of Illinois denied a motion to vacate a November 2024 stipulated final judgement and order requiring a Chicago-based mortgage broker to pay a $105,000 civil money penalty and adopt five-year compliance plan.Continue Reading Illinois District Court Denies Motion to Vacate CFPB Redlining Settlement
On May 14, the OCC entered into a formal agreement with a New York-based bank after determining that the institution is in “troubled condition.” In its findings, the OCC cited alleged unsafe or unsound practices tied to the bank’s strategic planning and earnings performance.Continue Reading OCC Enters Consent Orders Against New York-based Bank
On June 13, Judge Katherine Polk Failla of the U.S. District Court for the Southern District of New York entered a stipulated final judgement resolving claims brought by the New York Attorney General against a global money transmitter. The lawsuit, initially filed in partnership with the CFPB (previously discussed here), alleged violations of the Electronic Fund Transfer Act (EFTA), including the Remittance Rule under Regulation E, as well as the Consumer Financial Protection Act (CFPA).Continue Reading New York AG Secures $250,000 Settlement With Money Transmitter Over Remittance Rule Violations
On June 10, the CFPB moved to reopen its 2021 enforcement action against the final remaining defendant in a student debt relief case involving over $3.4 million in alleged illegal advance fees. The Bureau, under Acting Director Russel Vought, told the U.S. District Court for the Central District of California it will proceed against the individual defendant following a four-month stay.Continue Reading CFPB Moves Forward with Debt Relief Suit Over $3.4M in Alleged Advance Fees
On May 30, the CFPB and a national pawn store operator filed a joint status report in the U.S. District Court for the Northern District of Texas announcing that they have reached an agreement to resolve a 2021 Bureau lawsuit alleging violations of the Military Lending Act (MLA) and a 2013 CFPB consent order. The suit alleged that the pawn store operator and its subsidiary issued thousands of high-interest loans to active-duty servicemembers and their families in violation of federal law.Continue Reading CFPB and Pawn Store Operator to Settle MLA Suit
On May 27, the CFPB filed a notice of dismissal with prejudice in its lawsuit against a lease-to-own fintech provider. The lawsuit, filed in July 2023, alleged that the company’s rental-purchase agreements violated several federal consumer financial laws, including the Truth in Lending Act (TILA), the Electronic Fund Transfer Act (EFTA), the Fair Credit Reporting Act (FCRA), and the Consumer Financial Protection Act (CFPA).Continue Reading CFPB Drops Lawsuit Against Lease-to-Own Fintech Following Adverse Credit Ruling
On May 15, the CFPB rescinded its May 2022 interpretive rule that had expanded state enforcement authority under Section 1042 of the Consumer Financial Protection Act (CFPA). The Bureau now maintains that the previous guidance misread the statute and improperly extended state authority beyond what Congress intended.Continue Reading CFPB Narrows State Enforcement Powers by Rescinding 2022 Interpretative Rule
On May 15, the CFPB issued an amended consent order against an international remittance provider, reducing its civil penalty from $2.025 million to $44,955. The order alleges violations of the Electronic Fund Transfer Act (EFTA), its implementing Regulation E, and the Consumer Financial Protection Act (CFPA).Continue Reading CFPB Reduces Civil Penalty in Settled Remittance Enforcement Action
On April 30, the CFPB announced it will deprioritize enforcement and supervision of its small business lending data collection rule for institutions not covered by the stay issued by the U.S. Court of Appeals for the Fifth Circuit. The rule, finalized in May 2023 under Regulation B, implements Section 1071 of the Dodd-Frank Act and requires lenders to collect and report demographic and loan application data from small business credit applicants.Continue Reading CFPB Halts Enforcement of Small Business Lending Rule for Institutions Outside Fifth Circuit
On April 18, the FDIC announced a consent order against a Delaware-based bank alleging that the bank engaged in unsafe and unsound banking practices and violated various federal consumer protection laws, including Section 5 of the FTC Act, the Truth in Lending Act (TILA), and the Servicemembers Civil Relief Act (SCRA). Continue Reading FDIC Orders Bank to Pay $1.225 Billion for Alleged Interchange Fee Misclassification
The CFPB recently dropped two more lawsuits it brought under the Chopra administration—one involving a student loan securitization trust and the other regarding a subprime auto finance company. Both lawsuits included allegations of unfair, deceptive, or abusive practices (UDAAPs) in violation of the Consumer Financial Protection Act. Continue Reading CFPB Dismisses Two Actions Against Student Loan Trusts and Subprime Auto Lender