churning

Another target of CFPB enforcement action argues that lawsuit filed on August 23, 2023 must be dismissed because the CFPB lacked Constitutionally-authorized funds to prosecute the case

By Alan S. Kaplinsky on August 7, 2024

Posted in CFPB, Regulatory and Enforcement

We have recently blogged about two other actions in which this issue has been raised (one being a declaratory judgment action filed against the CFPB on July 23, 2024 in the E.D. Tex. and the other being an enforcement action filed in the N.D. Tex. in which a motion to dismiss was filed on July 31, 2024).… Continue Reading

CFPB files lawsuit against finance companies alleging UDAAP violations arising from “loan churning” practices

By John L. Culhane, Jr. & Michael Gordon on August 28, 2023

Posted in CFPB, Regulatory and Enforcement

The CFPB has filed a lawsuit in a South Carolina federal district court against Heights Finance Holding Co. f/k/a Southern Management Corporation and a group of its wholly-owned, state-licensed subsidiaries (collectively, Southern) in which the CFPB alleges that Southern violated the Consumer Financial Protection Act’s UDAAP prohibition by “churning payment-stressed borrowers in fee-laden refinances.”… Continue Reading