On November 13, the Consumer Financial Protection Bureau unveiled a comprehensive slate of consumer protections for prepaid debit cards that could increase the customer base for the financial product. The proposed rules (found here) are the most comprehensive set of federal standards for the fast-growing prepaid industry. Consumers are expected to load nearly $100
Amerisave to Pay $19.3 Million for Bait-and-Switch Mortgage Scheme
On August 12, the Consumer Financial Protection Bureau issued an order related to the advertising of mortgage rates that may provide valuable insight into the CFPB’s broader perspective on what constitutes misleading statements in advertising and publishing of rates.
The CFPB accused Amerisave Mortgage Corporation (“Amerisave”), its affiliate company Novo Appraisal Management Company (“Novo”), and
FICO Announces New Scoring Model that Could Raise Credit Scores
On August 7, FICO – the creator of one of the most widely used and influential credit scores – announced that it had recalibrated its credit scoring model to include a more nuanced way to assess consumer collection information, bypass paid collection agency accounts, and offer options to differentiate medical from non-medical collection agency accounts.
Mortgage Lead Generator to Pay $225,000 to Settle FTC Lawsuit Alleging Deceptive Advertising of Mortgage Rates
On May 7, 2014, the Federal Trade Commission filed a complaint in the U.S. District Court for the Southern District of Texas, Case No. 4:14cv1262, against GoLoansOnline.com (“GoLoansOnline”), an online company that finds potential borrowers for mortgage companies, alleging violations of the Federal Trade Commission Act, the Mortgage Acts and Practices Advertising Rule, the Truth
CFPB Launches Regulation Z on eRegulations Platform
The CFPB posted Regulation Z, which implements the Truth in Lending Act, on its eRegulations platform. The posting brings together all materials related to the regulation on a single website. Users of eRegulations can view the currently effective regulation text, search past and present versions of regulations, compare two versions of the regulation,
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
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,