On Wednesday, the New York Department of Financial Services (DFS) became the first state financial regulator to use the Dodd-Frank Act’s “UDAAP” consumer protection standards against a corporation when it filed a lawsuit against an auto lender. The 2010 Dodd-Frank Act gives state regulators the ability to sue companies for engaging in unfair, deceptive, or
Missouri AG Action Indicates Auto Service Contracts are Under Scrutiny
Missouri Attorney General Chris Koster recently announced a settlement with a business alleged to have improperly marketed limited-time extended warranty programs for vehicles. The AG stated that the settlement “highlights [his office’s] efforts to clean up the auto service contract industry in Missouri and protect consumers from future deceptive sales practices.”
According to the AG,
Operation Choke Point Under Scrutiny
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
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
CCN and TS Present – CFPB, State Regulators and Compliance
Credit and Collection News and Troutman Sanders’ Consumer Financial Services group present
“CFPB, State Regulators and Compliance”
Atlanta, GA
February 18-19, 2014
CCN and Troutman Sanders have created a seminar filled with rich and relevant content designed to meet the challenges of collecting in today’s economy, given the highly-regulated nature of the debt collection industry.
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,