As we have mentioned in previous posts, Operation Choke Point is a federal Financial Fraud Enforcement Task Force, created in 2009, including law enforcement and regulators from the Department of Justice, the Federal Trade Commission, and Federal Deposit Insurance Corporation. To attack financial fraud, the Task Force has been issuing subpoenas to banks for financial
Webinar: Do You Know Your BBB Rating? What You Don’t Know Could Hurt You
Troutman Sanders’ lawyers, Bill Hurd and Siran Faulders, will be panelists for the ‘OLA Webinar: Do You Know Your BBB Rating?’ on Tuesday, March, 25 at 4 pm Eastern.
Topics for discussion
- Learn why it is important to know, understand and improve your BBB rating
- Understand how the BBB determines its ratings and what you
Illinois Attorney General Files Lawsuit Joining in Increased Scrutiny of Lenders
On March 19, 2014, Attorney General Lisa Madigan joined in the increased scrutiny and focus on lenders, both online and storefront, by filing suit against a Chicago area short-term lender (the “Company”) that also operates in at least three other states. The lawsuit alleges that the Company misled borrowers into buying a product that was
Payday Lenders and Banks Investigated by Justice Department
Banks have recently come under fire from federal and state regulators and prosecutors. In late 2013, the Justice Department launched “Operation Choke Point,” an initiative that is scrutinizing banks to crack down on lucrative relationships they have with predatory lenders and unscrupulous online merchants. The Justice Department is investigating whether some banks, because of significant
Notable Win for Tribal Online Lenders
Tribal online lenders came away with a significant win in the California Court of Appeals this week in The People of the State of California v. Miami Nation Enterprises, et. al., Civ. No. B242644 (Cal. App. 2d Jan. 21, 2014). In Miami Nation, California’s Second Appellate Division affirmed the dismissal of a suit
Heat Turned Up on Payday Lenders by CFPB and Other Regulators
Both federal and state regulators continue to increase the pressure on payday lenders. New announcements last week demonstrate the ability of regulators to further battle the industry on multiple fronts. Public statements by federal and state regulators alike appear to equate certain legal online lending practices with fraud and other illicit activity.
Late last week,