On April 15, 2022, the U.S. Department of Justice filed a lawsuit against Steve’s Towing, Inc., located in Virginia Beach, Virginia, pursuant to the Servicemembers Civil Relief Act (“SCRA”), 50 U.S.C. §§ 3901-4043, for alleged violations of the SCRA’s prohibition against enforcing a storage lien on a servicemember’s vehicle during, or within ninety days after,
Dept. of Justice
PPP enforcement turns to lenders
By Terence M. Grugan on
Posted in Dept. of Justice, Regulatory and Enforcement
As we approach the two-year anniversary of the passage of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), the scope and costs of fraud in connection with its relief programs continues to mount. To date, the Department of Justice has brought criminal charges against over 1,000 defendants with alleged losses exceeding $1.1 billion;…
DOJ enters into settlement with credit union to resolve alleged SCRA violations in connection with interest rates and vehicle repossession
By John L. Culhane, Jr. on
Posted in Dept. of Justice, Military Issues
The Department of Justice recently entered into a settlement with BayPort Credit Union to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by charging unlawful interest to servicemembers and repossessing vehicles owned by servicemembers without first obtaining the required court orders. As detailed below, the consent order requires BayPort to pay compensation…
CFPB/ FTC/DOJ/Federal Reserve Board file joint amicus brief arguing consumers not applying for credit are “applicants” under ECOA
By John L. Culhane, Jr. on
The CFPB, FTC, DOJ, and Federal Reserve Board have filed a joint amicus brief in the U.S. Court of Appeals for the Seventh Circuit urging the court to reverse a district court ruling that an individual who had already received credit from the defendant and who was not currently applying to the defendant for credit…
CFPB and DOJ send joint letters to landlords and mortgage servicers on CARES Act and SCRA protections
By John L. Culhane, Jr. & Anthony C. Kaye on
On Monday, the CFPB and DOJ announced that they sent joint letters to landlords/property management companies and mortgage servicers regarding the protections given to servicemembers by the Coronavirus Aid, Relief and Economic Security (CARES) Act and the Servicemembers Civil Relief Act (SCRA).
Letter to landlords/property management companies. The letter only addresses SCRA protections for…
DOJ, CFPB and HUD officials outline priorities at industry fair lending conference
By Ballard CFS Group on
At an industry fair lending conference last week, officials from the U.S. Department of Justice (“DOJ”), the CFPB, and the U.S. Department of Housing and Urban Development (“HUD”) outlined fair lending priorities for their agencies. These represent the first remarks by these regulators following the DOJ’s announcement of its major new “Combatting Redlining Initiative…
DOJ announces major new initiative targeting redlining; DOJ/CFPB/OCC settle redlining lawsuit against Mississippi-based national bank
By Ballard CFS Group on
The Biden Administration’s prioritization of fair lending as a law enforcement focus took center stage last week with the announcement that the U.S. Department of Justice (DOJ) has launched a new initiative targeting redlining and that the DOJ and CFPB, in cooperation with the OCC, had settled the first lawsuit filed under the Initiative.
New…