On January 22, New York Attorney General Letitia James announced a $1 billion settlement with a now defunct cash advance firm and its officers. The settlement resolves allegations that the firm and its officers repeatedly engaged in fraudulent and deceptive predatory lending practices aimed at small business owners in violation of New York law. Continue Reading New York AG Reaches $1 Billion Settlement with ‘Predatory’ Lender
On January 30, 2025, the CFPB issued an order against a remittance company for misleading consumers about fees and failing to provide accurate disclosures, harming consumers who relied on the company’s representations when sending money to family and friends. The Bureau alleges the company’s conduct violated of the Consumer Financial Protection Act’s (CFPA) prohibition on unfair, deceptive, or abusive acts or practices and the Electronic Fund Transfer Act’s (EFTA) fee disclosure requirements for prepaid accountsContinue Reading CFPB Orders Remittance Company to Pay $2.5 Million for Deceptive Practices and Inaccurate Disclosures
On January 17, 2025, the CFPB filed a complaint against an Illinois-based non-depository mortgage lender for allegedly engaging in discriminatory practices. The CFPB alleges the lender engaged in improper redlining by deliberately excluding certain neighborhoods from its services based on the racial and ethnic composition of those areas, in violation of the Equal Credit Opportunity Act (ECOA). Continue Reading CFPB Takes Action Against Illinois Mortgage Lender for Redlining Violations
On January 17, 2025, the CFPB issued a consent order against a large consumer reporting agency for failing to properly investigate consumer disputes concerning inaccurate information on consumers’ credit reports. The CFPB alleges the agency violated the Fair Credit Reporting Act (FCRA), by relying on ineffective processes and failing to thoroughly investigate disputes. Continue Reading CFPB Orders Credit Reporting Agency to Pay $15 Million for Mishandling Consumer Disputes
On January 7, 2025, the United States Department of Justice (the “DOJ”) announced that a non-depository mortgage lender has agreed to pay $1.75 million in connection with allegations that it engaged in a pattern or practice of lending discrimination by redlining predominantly Black and Hispanic neighborhoods.Continue Reading DOJ Announces Third Settlement with a Non-Depository Lender to Resolve Alleged Redlining Claims
On January 6, 2025, the CFPB filed a lawsuit against a non-bank manufactured home financing company for violations of the Truth in Lending Act and Regulation Z. The lawsuit alleges that the mortgage lender engaged in predatory lending practices by providing manufactured home loans to borrowers it knew could not afford them.Continue Reading CFPB Sues Mortgage Lender for Predatory Lending Practices in Manufacture Homes Loans
On December 27, 2024, the Federal Deposit Insurance Corporation (FDIC) announced a notice of assessment of a civil money penalty against a Kansas-based bank. The action, originally brought in November, imposed a $20.4 million civil money penalty against the bank and alleged violations of the Bank Secrecy Act (BSA), 31 U.S.C. § 5311 et seq., for its failure to implement an adequate anti-money laundering and counter-terrorism program.Continue Reading FDIC Enforcement Spotlights Deficiencies in Kansas Bank’s Anti-Money Laundering Program
On December 30, the Department of Justice (DOJ), at the Federal Trade Commission’s (FTC) referral, filed an amended complaint against an online cash advance provider. The complaint now names the company’s CEO as a defendant, alleging violations of the FTC Act, 15 U.S.C. §§ 45(a), and the Restore Online Shoppers’ Confidence Act, 15 U.S.C. § 8403. Continue Reading FTC and DOJ File Amended Complaint Against Cash Advance Fintech
On December 9, the CFPB entered into a consent order with a debt collection agency for alleged unlawful student loan debt collection practices against defaulted borrowers. The debt collection agency’s allegedly improper practices included delaying borrowers’ loan rehabilitation processes to generate and collect fees that cost individual borrowers thousands of dollars. These actions were in violation of the CFPA’s prohibitions on unfair and abusive acts or practices and the FDCPA. See 12 U.S.C. §§ 5563, 5565;15 U.S.C. § 1692l(b)(6).Continue Reading CFPB Bans Debt Collection Agency Over Student Loan Abuses
On December 3, the CFPB filed a proposed settlement to resolve a long running lawsuit against a student loan relief company and its owner (collectively, the “Defendants”). The settlement bars the company from offering or providing debt settlement products. In addition, the Defendants must pay $2,000 in civil monetary penalties, an amount determined based on their inability to pay more.Continue Reading CFPB’s Settlement Imposes Permanent Ban on Defunct Student Loan Relief Company and Its Owner