On October 31, the CFPB entered into a consent order with a Florida-chartered credit union for harming consumers in connection with the botched launch of a new online banking system, in violation of the Consumer Financial Protection Act (CFPA). Continue Reading CFPB Penalizes Major Credit Union for Mishandled Online Banking Program Rollout

On October 24, the District of Columbia Office of the Attorney General (the “DCAG”) announced that it entered into a $500,000 settlement with a title insurance company following an investigation, alleging that the company engaged in an illegal kickback scheme. Specifically, the DCAG determined that the title company offered real estate agents discounted ownership interests and profit-sharing in entities created specifically for the purpose of incentivizing those agents to make business referrals to the title company.Continue Reading D.C. Attorney General Settles with Title Insurance Company for Alleged Kickback Scheme

In a September 26 settlement, the Massachusetts Attorney General’s office reached an agreement with a mortgage loan servicer to resolve allegations of violations of Massachusetts consumer protection laws and the Truth in Lending Act.Continue Reading Massachusetts AG Reaches Settlement with Loan Servicer Over Improper Debt Collection Practices

On October 15, the CFPB and the DOJ announced a settlement against a large mortgage lender for its alleged discriminatory redlining practices against residents of majority-Black neighborhoods in the greater Birmingham, Alabama area in violation of the Fair Housing Act, the Equal Credit Opportunity Act, and Consumer Financial Protection Act. Redlining occurs when lenders discourage credit applications, deny equal access to home loans and other credit services in certain areas, or avoid providing home loans based on applicants’ protected class status, such as the race, national origin, or color of the residents of those areas.Continue Reading CFPB and DOJ Target Mortgage Lender for Alleged Discriminatory Redlining Practices

On October 10, the CFPB settled an action against a California-based private arbitration company permanently banning it from arbitrating disputes related to consumer financial products or services. The company operates an online dispute resolution platform that connects debtors with creditors for the purpose of resolving disputes and debts.Continue Reading CFPB Permanently Bans Arbitration Company from Arbitrating Consumer Financial Disputes

On September 17, the California Department of Financial Protection and Innovation (DFPI) announced enforcement actions against three student loan debt relief companies. The companies were ordered to cease unlawful practices, including charging upfront fees prior to providing services. They were also required to cancel all outstanding contracts with California consumers, issue refunds, and collectively pay $260,000 in penalties.Continue Reading DFPI Cracks Down on Illegal Student Loan Debt Relief Practices

On September 30, a credit repair service provider and its owner were ordered to pay $31 million in consumer redress, and a $19 million civil money penalty, when a Massachusetts federal court granted summary judgment for the CFPB and the Massachusetts Attorney General.Continue Reading Credit Repair Company Fined $50M for Misleading Consumers

On September 4, the California Privacy Protection Agency (“CPPA”) issued an Enforcement Advisory cautioning businesses against the use of “dark patterns” in their consumer-facing user interfaces. The California Consumer Privacy

Continue Reading California Regulator Cautions Businesses Against the Use of Dark Patterns

On September 13, the CFPB filed a complaint against a nonbank corporation and its CEO, alleging that the company engaged in deceptive and abusive acts through misleading advertising and unjustified, exorbitant fees related to its credit card program. The CFPB claims these actions violate both the Consumer Financial Protection Act and the Truth in Lending Act.Continue Reading CFPB Cracks Down on Credit Services Provider for Gouging and Trapping Consumers

On September 12, 2024, the Consumer Financial Protection Bureau (CFPB) filed a proposed order which, if entered by the court, will ban a student loan servicer from servicing federal student loans and require it to pay $120 million—$20 million in civil money penalties and $100 million in redress for harmed borrowers—for what is described as “wide-ranging student lending failures” resulting in violations of the Consumer Financial Protection Act, the Fair Credit Reporting Act, and the Fair Debt Collection Practices Act.Continue Reading CFPB Settles Action Against Student Loan Servicer with Industry Ban