The Consumer Financial Protection Bureau (CFPB) has experienced a flurry of activity over the past few weeks beginning with President Trump’s dismissal of Rohit Chopra as the Director of the Bureau on January 31. That same day, President Trump designated Scott Bessent, who had recently been sworn in as Secretary…
On January 30, 2025, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with an international remittance company regarding the company’s use of deceptive advertising for fee amounts and failure to properly disclose applicable fees, in violation of both the Consumer Financial Protection Act (CFPA) and the Electronic Fund…
On January 23, 2025, the New York Department of Financial Services (DFS) announced that it reached a $2,000,000 settlement as part of a broader consent order with a peer-to-peer payment platform (“P2P”) about its cybersecurity practices. DFS contended that the P2P violated rules on Cybersecurity Policy, Cybersecurity Personnel and Intelligence,…
On January 13, 2025, the Consumer Financial Protection Bureau (CFPB) announced that it proposed a rule (the Proposed Rule) seeking to ban certain terms and conditions in agreements for consumer financial products or services that purport to waive or limit consumer rights and protections. Under the Proposed Rule, covered institutions would…
On January 14, 2025, the CFPB announced that it had filed a complaint against a large national bank for alleged violations of the Consumer Financial Protection Act (CFPA), the Truth in Savings Act (TISA) and TISA’s implementing regulation, Regulation DD, regarding the bank’s alleged improper interest rate practices. According to the CFPB’s complaint, the bank offered a…
On January 14, 2025, New York Attorney General Letitia James announced that the state had entered into a settlement with a national credit reporting provider to resolve allegations that the provider had harmed consumers by disseminating incorrect credit reporting information to lenders. According to the Attorney General, the credit reporting provider implemented a change to…
On January 9, 2025, 51 State Financial Regulatory Agencies (the “Agencies”) announced a coordinated consent order and settlement agreement with nonbank mortgage servicing companies (the “Companies”). This action came following a data breach that impacted 5.8 million customers, allegedly due to deficient cybersecurity practices, and for lack of cooperation with state regulators. The Companies are licensed as…
On January 7, 2025, the Consumer Financial Protection Bureau (“CFPB”) filed a complaint against a nationwide consumer reporting agency (“Agency”) under the Fair Credit Reporting Act (“FCRA”) and the Consumer Financial Protection Act of 2010 (“CFPA”). The CFPB claims that the Agency inadequately reinvestigated consumer disputes that challenged the information found in consumer…
The Consumer Financial Protection Bureau (“CFPB”) filed a complaint against a manufactured home loan company (the “Company”) on January 6, 2025, alleging that it originates loans that borrowers are unlikely to be able to repay in order to sell more homes, resulting in additional fees, penalties, and sometimes the loss of their…
In late 2024, the Massachusetts Division of Banks (the “Division”) announced consent orders with four auto finance companies resolving allegations of improper repossession of motor vehicles. On November 4, 2024, the Division announced that it had entered into a consent order with a motor vehicle sales finance company that also operates as…
On December 31, 2024, the Massachusetts Commissioner of Banks entered into a consent order with a third party loan servicer (the “Company”), for allegedly engaging in the business of loan servicing in Massachusetts without the appropriate registration. The Company is a California corporation operating in Massachusetts. While records show that the Company submitted…
In December 2024, the Consumer Financial Protection Bureau (CFPB) finalized a rule to update regulatory exemptions of overdraft loans from lending laws. According to the Bureau, this is a major step in the CFPB’s efforts to curb junk fees. Per the CFPB, for decades, overdraft loans have not only added…
On December 23, 2024, The California Department of Financial Protection and Innovation (DFPI) announced a consent order with a crypto lending platform (the Company) that provides financial services to retail and institutional customers to resolve the Department’s investigation into the Company’s lending program. The DFPI alleged that the Company breached the California…
In December 2024, the Consumer Financial Protection Bureau (Bureau) rolled out a series of important measures aimed at addressing potential misconduct in the credit card industry, improving consumer protections, and promoting transparency and competition in the market. The Bureau’s initiatives come at a time when credit card usage is peaking…
On December 9, 2024, the Federal Trade Commission (FTC) announced it received a temporary restraining order against a student loan servicer over allegations the servicer and its operator misled consumers into thinking they were receiving student debt relief and forgiveness. According to the FTC’s complaint, the Nevada-based servicer and its operator made telemarking calls and…
On December 6, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it had filed suit against a bank subsidiary of a financial services company for allegedly disconnecting customer service calls, charging illegal ATM fees, misleading fraud victims, imposing illegal terms of service on consumers seeking to stop payments, failing to investigate account…
On December 5, 2024, the CFPB announced that it had entered into a proposed stipulated final judgment and order with a student lender and its investors, resolving allegations that the student lender had violated the Consumer Financial Protection Act (CFPA), the Truth in Lending Act (TILA), and Regulation Z through deceptive advertising and disclosures. In…
On December 4, 2024, the CFPB announced that it entered into a proposed stipulated judgment with a student loan servicer and its owner, resolving allegations that the student loan servicer violated the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act (CFPA). According to the judgment, the servicer at issue and its owner illegally…
On Tuesday, November 26, the Minnesota Attorney General’s office (AG) announced it filed a consent order to resolve allegations that online lenders were charging interest on loans in excess of the amounts prescribed under Minnesota usury laws. Under the consent order, over $1 million in allegedly illegal loans were discharged….
On October 17, 2024, the Consumer Finance Protection Bureau (CFPB) announced that it had filed an action in the U.S. District Court for the Southern District of New York against an online lender of student loans, its wholly-owned subsidiaries, and the owners and operators of those entities (collectively, the Company)…