On January 11, 2017, the Federal Trade Commission (FTC) announced that it had agreed to two stipulated orders (available here and here) with individuals who participated in an alleged fraudulent mortgage relief scheme. According to the FTC, the individuals promised consumers “at least $75,000” or complete relief on their mortgages through a “mass joinder lawsuit.” The…
On January 9, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with two affiliated medical debt collection law firms over allegations that the law firms used deceptive collection letters and illegally notarized collection affidavits. The consent order alleges that the law firms would send debtors collection…
On January 9, 2017, the Federal Trade Commission (FTC) announced that it had filed a lawsuit in the U.S. District Court for the District of Kansas against one individual and affiliated companies, alleging that they sold portfolios of nonexistent payday loans to debt collectors. The complaint alleges that the companies fabricated lenders and loan…
On January 4, 2017, the Iowa Attorney General’s Office (“Iowa AG”) announced that it had entered into an agreement with a company accused of charging high rates of interest on cash advances from pension accounts. According to the Iowa AG, the company charged up to 200 percent interest for cash…
On December 21, 2016, the Arkansas Attorney General’s Office (“Arkansas AG”) announced that it had filed a lawsuit in the U.S. District Court for the Eastern District of Arkansas against a Florida-based credit repair company, stemming from allegations that the company made false and misleading representations to consumers. The Arkansas…
On December 17, 2016, the Arkansas Attorney General’s Office (“Arkansas AG”) announced that it had filed a lawsuit against affiliated auto dealerships for violations of the Arkansas Deceptive Trade Practices Act. The Arkansas AG alleged that these auto dealerships would submit loan applications to third-party lenders, who would then deposit…
On December 1, 2016, the United States Attorney’s Office for the Southern District of New York, the New York Field Division of the Federal Bureau of Investigation, and the Department of Housing and Urban Development (HUD) announced the unsealing of indictments against five individuals for allegedly participating in a debt-elimination…
On November 30, 2016, the Federal Trade Commission (FTC) and the Florida Attorney General (AG) announced several settlements totaling approximately $27 million in an alleged fraudulent credit card debt reduction scheme. In a set of stipulated orders, all but one defendant agreed to monetary judgments, as well as bans on future telemarketing, selling debt relief services, and credit…
On November 30, 2016, the Colorado Attorney General’s Office announced that it had secured a judgment in Colorado state court against affiliated lenders who operated an illegal auto title loan scheme. The companies allegedly used fictitious names in extending credit services, and allegedly charged consumers usurious interest rates for personal…
On November 28, 2016, the Consumer Financial Protection Bureau announced that it issued a compliance bulletin warning regulated financial companies about the use of employee incentive programs in providing their financial products to consumers. The Bureau advised that these types of programs, if run unchecked or with excessive sales goals,…
On November 3, 2016, the Georgia Attorney General’s Office (Georgia AG) announced that affiliated online payday lenders will suspend collections on approximately $6.5 million in loans following a Georgia Supreme Court ruling that state law applied to the online payday lenders. As a result of that ruling, the Georgia AG’s case currently…
On October 14, 2016, the Indiana Attorney General’s Office (Indiana AG) announced that it had reached a settlement with an online payday lender. The Indiana AG alleged that the lender employed a “rent-a-tribe” scheme in which it allegedly associated itself with a Native American tribe in order to bypass the Indian Deceptive…
On October 6, 2016, the Illinois Attorney General’s Office (“Illinois AG”) announced that it had reached a settlement with a small-dollar consumer lender for approximately $3.5 million, resolving allegations that the lender violated the Illinois Financial Services Development Act’s 36% interest rate cap. The Illinois AG accused the lender of…