The CFPB has filed a lawsuit against Oakland, CA-based online lender LendUpLoans alleging that LendUp is in violation of a 2016 Consent Order that required the lender to pay over $3.5 million in consumer redress as well as civil penalties and to cease misleading consumers with alleged false claims about the cost of loans and
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CFPB sues debt settlement company and its owners for deceptive and abusive telemarketing practices
By Susan N. Nikdel on
On November 20, 2020, the CFPB filed a lawsuit against a student-loan debt-relief company, FDATR, Inc., and its owners, Dean Tucci and Kenneth Wayne Halverson. FDATR was an Illinois company that involuntarily dissolved in September 2020. Through telemarketing and telephone sales, FDATR promised to provide student-loan debt-relief and credit-repair services to consumers.
The complaint,…
CFPB alleges provider of short-term loans violated CFPA’S UDAAP prohibition in connection with deposit account program
By William Rooks on
On November 5, 2020, the CFPB named Driver Loan, LLC (“Driver Loan”) and its Chief Executive Officer as defendants in a two-count complaint filed in a Florida federal district court that alleges they engaged in deceptive acts and practices in violation of the Dodd-Frank Act’s UDAAP prohibition in connection with taking deposits from and making…
CFPB sues debt collectors and debt buyers for alleged violations of CFPA, FDCPA, and 2015 consent order
By William Rooks on
Almost five years after entering into an administrative consent order with Encore Capital Group, Inc., Midland Funding, LLC, Midland Credit Management, Inc., and Asset Acceptance Capital Corp. (collectively, “Defendants”) to resolve claims relating to the Defendants’ debt collection practices, the CFPB, on September 8, 2020, filed a five count complaint (the “Complaint”) in…
CFPB Files First Ever Redlining Complaint Against a Non-Bank Mortgage Lender
By Richard J. Andreano, Jr. on
On July 15, 2020, the CPFB filed a complaint in federal court against Townstone Financial, Inc. (Townstone) representing the first ever redlining complaint against a non-bank mortgage lender. The complaint is brought under the Equal Credit Opportunity Act (ECOA) and Consumer Financial Protection Act (CFPA), but not the Fair Housing Act (FHA). (The U.S. Department…
CFPB files lawsuit against My Loan Doctor and its founder for alleged deceptive marketing of deposit accounts
By Sarah E. Pruett on
The CFPB filed a complaint on July 6, 2020 in a New York federal district court against My Loan Doctor LLC (“Loan Doctor”) and its founder, Dr. Edgar Radjabli, for allegedly making false, misleading, and inaccurate marketing representations in violation of the Consumer Financial Protection Act’s prohibition against unfair, deceptive or abusive acts or practices.…
CFPB continues to push the envelope in announcing settlement with brokers of pension advances
By Rene T. McNulty on
Posted in Regulatory and Enforcement
The CFPB announced on August 14, 2019 that, subject to the approval of the Federal District Court for the Eastern District of Arkansas, the Bureau and the Arkansas Attorney General have entered into a proposed settlement with Andrew Gamber, Voyager Financial Group, LLC, BAIC, Inc., and SoBell Corp. to resolve the Bureau’s allegations that the…
Vermont federal district court rules CFPA does not provide private right of action for alleged usurious loans; denies motion to dismiss EFTA claim
By Jeremy T. Rosenblum on
Posted in Electronic Payments, Regulatory and Enforcement
A Vermont federal district court recently issued a decision ruling on the defendants’ motion to dismiss a class action involving allegations that an online tribal lending venture violated federal and state law because of alleged usurious interest rates and other allegedly unlawful features. The decision discusses a wide array of procedural issues, including the enforceability…