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 a California federal district court against the alleging that the Defendants’ collection and other practices violated the FDCPA, the CFPA, and the terms of the consent order.… Continue Reading
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).… Continue Reading
CFPB files lawsuit against My Loan Doctor and its founder for alleged deceptive marketing of deposit accounts
By Ballard CFS Group 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.… Continue Reading
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 defendants violated the Consumer Financial Protection Act and the Arkansas Deceptive Trade Practices Act while brokering contracts that offered high-interest credit to veterans and other consumers, through which these consumers received lump-sum payments in exchange for assigning their monthly pension or disability payments to investors.… Continue Reading
Vermont federal district court rules CFPA does not provide private right of action for alleged usurious loans; denies motion to dismiss EFTA claim
By Ballard CFS Group 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 of the arbitration provisions in the plaintiffs’ loan agreements.… Continue Reading