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FinTech Companies Settle PPP-related Claims with FTC

On March 18, 2024, the Federal Trade Commission (FTC) announced ​that it ​entered into proposed orders with two fintech firms, resolving allegations of misconduct tied to the firms’ involvement in federal COVID-19 Paycheck Protection Programs (PPP).  Specifically, the proposed orders resolve allegations that the firms violated Section 5(a) of the FTC Act,…

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CFPB Issues Consent Order Against Third-Party Debt Collector

On December 15, 2023, the CFPB announced​ that it entered into a consent order​ with a medical debt collector resolving allegation​s that the debt collector tried to collect unverified medical debts after consumers disputed the validity of those debts. The CFPB alleges that the company failed to conduct reasonable investigations of disputed debts and failed to inform consumer reporting companies…

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FTC and Wisconsin AG File Complaint Against Auto Financing Company

On October 24, 2023, the Federal Trade Commission (FTC) announced that it had filed a complaint against a Wisconsin-based auto dealership alleging “unfair or deceptive acts or practices in or affecting commerce” in violation of FTC Act,15 U.S.C. § 45(a), and violations of the Equal Credit Opportunity Act (ECOA) and Regulation B, which prohibit…

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Minnesota AG Sues For-Profit Educational Provider for Deceptive Marketing and Lending Practices

On July 13, 2023, Minnesota Attorney General Keith Ellison filed an enforcement action against a for-profit educational provider alleging the educational provider engaged in deceptive marketing and lending practices.  The suit was filed in Delaware Bankruptcy Court in partnership with the Consumer Financial Protection Bureau, California’s Department of Financial Protection and Innovation,…

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CFPB Enters into Consent Order with Payments Processor Over Erroneous Debits

On June 27, 2023, ​the CFPB announced​ that it had entered ​into a consent ord​er with a company that offers payment processing services across a wide range of industries including utilities, student loan servicing, healthcare, education, insurance, telecommunications, and mortgage servicing. ​The order resolves allegations that the company improperly initiated approximately $2.3 billion in unlawful mortgage payment…

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Minnesota Attorney General Enters Into $20,000 Settlement with Student-Loan Debt Relief Company

On February 14, 2023, the Minnesota Attorney General (AG) announced a se​​​ttlement​ with a California-based student-loan debt relief company to resolve allegations that the company operated a fraudulent student loan debt forgiveness scheme. The AG alleged that the company violated Minnesota’s Debt Settlement Services Act, Minn. Stat. §§ 332B.03-.12, the Prevention of Consumer Fraud Act, Minn. Stat. §…

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Massachusetts Division of Banks Enters into Consent Order with Online Consumer Lender

On February 10, 2023, the Massachusetts Division of Banks (DOB) announced that it entered into a consent order​​ with an online loan servicer headquartered in Chicago, Illinois.  The order resolves allegations that the company “engaged in the business of a small loan company from at least August 1, 2016 through May 31, 2019 in Masschusetts without the appropriate…

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CFPB and New York AG Announce Joint Enforcement Action Against Auto Lender

On January 4, 2023, the Consumer Financial Protection Bureau (CFPB) and New York State Office of the Attorney General (NY AG) announced a joint enforcement action against one of the country’s largest publicly-traded indirect auto lenders. The 8​​​​-count complaint​, filed in the United States District Court for the ​Southern District of New York,…

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