Regulatory Enforcement + Compliance

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On July 19, the New York Attorney General’s Office initiated an investigation into the National Collegiate Student Loan Trusts, sending subpoenas to request information on every collection lawsuit filed by National Collegiate against residents of the state.  National Collegiate, one of the largest owners of private student loan debt in the nation, has been aggressively…

On August 25, the United States District Court for the Northern District of Georgia struck four counts of a complaint filed by the Consumer Financial Protection Bureau because it failed to abide by the Court’s discovery order.

This matter began on March 26, 2015, when the CFPB filed a complaint against 12 debt collectors, four…

The U.S. Department of Justice announced the end of Operation Choke Point in an August 16 letter to the Chairman of the House Judiciary Committee.  Operation Choke Point, which began under the Obama Administration, sought to prohibit banks and other financial firms from giving so-called “bad actors” access to bank accounts and payment processing systems. …

The Consumer Financial Protection Bureau recently released a Compliance Bulletin regarding fees that companies may charge consumers when they pay by phone.

The Bulletin highlights certain practices related to phone payment fees that may violate the Dodd-Frank Act’s prohibition on committing unfair, deceptive, or abusive acts and practices (UDAAPs), including:

  • Failing to disclose all available

…

Twenty-one Democratic state attorneys general wrote to Senate leaders Mitch McConnell and Charles Schumer to express their opposition to S.J. Res. 47, which would nullify the Arbitration Rule issued by the Consumer Financial Protection Bureau under the Congressional Review Act.  The AGs requested that both senators oppose the Joint Resolution of Disapproval …

On August 16, Minnesota Attorney General Lori Swanson announced the filing of a lawsuit against two pension advance companies alleged to have preyed on veterans and senior citizens, convincing borrowers into signing over large portions of their monthly pensions in exchange for small loans to cover household emergencies and basic living expenses.

The suit, filed…

On August 17, the Consumer Financial Protection Bureau filed a complaint and proposed settlement against Aequitas Capital Management, Inc. and its related entities, alleging that the loan buyer aided the Corinthian Colleges’ predatory lending scheme.  According to the Bureau, Aequitas enabled Corinthian to make high-cost private loans to Corinthian students, giving the impression that the…

On July 28, the Federal Trade Commission filed a lawsuit in the United States District Court for the District of Arizona against several merchants, an Independent Sales Organization (“ISO”), and their affiliated companies (a total of twelve defendants) alleging that they had engaged in credit card laundering in violation of Sec. 13(b) of the FTC…

We are pleased to announce that Troutman Sanders Partner Ashley Taylor will be a featured speaker at the American Bar Association State and Local 2017 Annual Meeting taking place on August 10, 2017.

Ashley will participate in the State Attorneys General and Department of Justices Issues Committee meeting tomorrow to discuss state Attorneys General work…

On July 20, Pennsylvania Attorney General Josh Shapiro announced the creation of a Consumer Financial Protection Unit to protect Pennsylvanians from “financial scams.”

According to Shapiro’s announcement, the new unit will focus on lenders and mortgage and student loan servicers that “prey on seniors, families with students, and military service members.”  This new consumer unit…