The FTC announced this week that it was bringing claims against two auto dealership chains alleging that they had violated the terms of two 2012 administrative orders prohibiting the dealerships from misrepresenting financing and lease terms in their advertising.
First, the FTC sued the Billion Auto dealerships – a chain of 20 dealerships in Iowa,
The American Financial Services Association (AFSA), a consumer credit industry trade association, released a study this month that took issue with the Consumer Financial Protection Bureau’s method of measuring discrimination in the automotive lending business.
The study, which was carried out by Charles River Associates and based on over eight million vehicle finance contracts issued
The United States Attorney for the Southern District of New York this month brought criminal charges against Williams Scott & Associates LLC and seven of its employees for allegedly engaging in illegal practices to collect more than $4 million from 6,000 victims across the country.
The charges of conspiracy to commit wire fraud followed a
Pennsylvania Attorney General Kathleen G. Kane recently filed a consumer protection lawsuit against Think Finance, a Texas-based company, for allegedly engineering an illegal payday loan scheme over the Internet. The lawsuit, filed in the Court of Common Pleas of Philadelphia County, alleges that the company targets Philadelphia consumers in violation of state law.
The suit
Following lawsuits filed against it this month by the Federal Trade Commission and Florida Attorney General Pam Bondi, Consumer Collection Advocates Corp. (CCA) and its principal agreed to suspend operations in Florida, pending the outcome of the litigation.
According to the complaints by the FTC and the Florida Attorney General, CCA contracted with fraud
On October 17, the Congressional Budget Office responded to a request from the House Financial Services Committee and issued certain cost estimates associated with the implementation of the proposed “Financial Regulatory Clarity Act of 2014.” Specifically, the CBO estimated that the bill would cost the Consumer Financial Protection Bureau $7 million between 2015 and 2024,
House Financial Services Committee Chairman Rep. Jeb Hensarling (R-Texas) recently sent a letter to CFPB Director Richard Cordray expressing concern about the Bureau’s proposed regulation of nonbank auto lenders.
According to Hensarling, it would be “inappropriate” for the agency to regulate nonbank auto lenders until it clarifies the “rules of the road.” The letter echoes
On September 24, U.S. District Judge James S. Moody, Jr., of the U.S. District Court for the Middle District of Florida, issued a preliminary injunction against several law firms accused by the attorneys general of Connecticut and Florida of charging illegal upfront fees to distressed homeowners in a mortgage rescue scam.
Judge Moody agreed that
The United States Court of Appeals for the Sixth Circuit has issued a decision upholding a district court ruling that several defendants based in the U.S. and Canada deceived consumers through a telemarketing scheme designed to sell them phony mortgage assistance and debt relief programs, according to the Federal Trade Commission.
The Court’s decision
The Automotive Recyclers Association (ARA) sent a letter to Louisiana Attorney General James D. “Buddy” Caldwell this past week to dispute statements made by the Attorney General about a recent lawsuit filed against State Farm Insurance, which called into question State Farm’s practice of encouraging repair shops to use recycled parts when repairing damaged vehicles.