Earlier today, the Consumer Financial Protection Bureau and thirteen state attorneys general released a Consent Order with Colfax Capital Corporation and Culver Capital, LLC, collectively known as “Rome Finance”, for approximately 17,000 military servicemembers and others harmed by predatory lending. This is the latest in an increasingly joint effort by state attorneys general and the
OCC Identifies Signs of Risk in Auto Lending Industry
The Office of the Comptroller of the Currency (OCC) in its Spring 2014 Semiannual Risk Perspective report has stated that signs of risk in the auto lending industry are beginning to emerge, based on data that the OCC reviewed as of December 31, 2013. The OCC’s Semiannual Risk Perspective is published by the OCC’s National
Eight New Jersey Motor Vehicle Dealers and State Attorney General’s Office Enter into $1.8 Million Settlement to Resolve Allegations of Deceptive Practices
The Division of Consumer Affairs of the New Jersey Attorney General’s office has reached a $1.8 million settlement with eight New Jersey motor vehicle dealerships, all under common ownership, to resolve multiple claims of deceptive business practices that were discovered during the Division’s investigation. The settlement also provides for restitution for certain identified consumers affected
FCC Strengthens Consent Requirements by Limiting Scope Based upon Individual’s Expectations
The Federal Communications Commission (FCC) in late June 2014 responded to the Second Circuit Court of Appeals’ request in Nigro v. Mercantile Adjustment Bureau for the FCC to opine on a specific question. The Second Circuit asked whether prior express consent existed under the Telephone Consumer Protection Act (TCPA) for an individual’s provision of a
CFPB to Issue White Paper Regarding Identification of Discrimination in Indirect Auto Lending
The Consumer Financial Protection Bureau’s 2013 bulletin cautioning lenders offering auto loans through dealerships that they remain accountable for complying with fair lending laws has sparked questions regarding how the CFPB identifies problematic discriminatory practices. In an effort to address these concerns, CFPB Director Cordray reported during the House Financial Services Committee’s hearing on the
Fifth Circuit Court of Appeals Holds FCRA Suit Time Barred
In Mack v. Equable Ascent Financial, L.L.C., the Fifth Circuit ruled the consumer’s suit was barred under the Fair Credit Reporting Act’s two-year statute of limitations. Rejecting the plaintiff’s claim that the statute does not begin to run when the consumer discovers the facts that constitute the legal violation, the Court of Appeals held
Seventh Circuit Rules Federal Government Not Immune From Litigation Under FCRA
The United States Court of Appeals Seventh Circuit ruled Tuesday that the federal government cannot invoke the defense of sovereign immunity for violations of the Fair Credit Reporting Act, but the court also dismissed on separate grounds the underlying class action proceeding relating to the government’s alleged unlawful disclosure of plaintiff’s credit card information.
In
Look Out Foreclosure Relief “Scammers”!
Lenders and servicers are not the only targets in the crosshairs of the Consumer Financial Protection Bureau when it comes to foreclosures. The CFPB, the Federal Trade Commission, and fifteen states announced a sweep against foreclosure relief companies that allegedly used deceptive marketing tactics to rip off distressed homeowners. The CFPB and the FTC have
CFPB Director Discusses Perceived Benefits of Public Complaint Database
The Consumer Financial Protection Bureau has announced an initiative to allow consumers to contribute a public “narrative of their own experiences” when posting to the CFPB’s Consumer Complaint Database. We discussed the creation of this narrative section in our July 18 blog titled “CFPB Adds Narrative to Complaint Database.” Recently, Richard Cordray, Director
Prepaid Cards – CFPB’s Latest Target
The Consumer Financial Protection Bureau will begin looking into complaints about prepaid cards – including gift cards, benefit cards, and general purpose reloadable cards – the Bureau announced Monday. Consumers can also now submit complaints about additional nonbank products, including debt settlement services, credit repair services, and pawn and title loans.
The CFPB already