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On May 17, 2021, the Consumer Financial Protection Bureau (“CFPB”) announced that it entered into a proposed settlement of its lawsuit filed in a Massachusetts federal district court against debt settlement company DMB Financial, LLC (“DMB”), alleging that the company engaged in deceptive acts or practices in violation of the Telemarketing Sales Rule (“TSR”) and the Consumer Financial Protection Act (“CFPA”).  … Continue Reading

The CFPB announced earlier this week that it has entered into a proposed settlement  of its lawsuit filed in a California federal district court against SettleIt, Inc., a debt settlement company, alleging that the company engaged in abusive acts or practices in violation of the Consumer Financial Protection Act and also violated the Telemarketing Sales Rule. … Continue Reading

Last week, the CFPB filed a lawsuit in a California federal district court against Performance SLC LLC, Performance Settlement, and Daniel Crenshaw, the owner and CEO of the two companies.  Performance SLC is a debt-settlement company focused on federal student loan debt, and Performance Settlement is also a debt-settlement company.

The complaint alleges that Performance SLC and Crenshaw violated the Telemarketing Sales Rule (TSR) by charging illegal advance fees to student loan borrowers seeking to obtain loan consolidation, loan forgiveness, or income-driven repayment plans for their federal student loans. … Continue Reading

Among the suite of consumer protection bills signed into law last month by California Governor Gavin Newsom is AB 2524. The bill, as enacted, is a less-expansive version of an assembly bill that would have created an entirely new and broad system of regulation over debt settlement companies through amendments to the Check Sellers, Bill Payers and Proraters Law.… Continue Reading

Google has updated its financial products and services policy to restrict the advertisement of debt settlement, debt management services, and credit repair services.

Ads for credit repair services will no longer be allowed while ads for debt settlement or debt management services will be allowed only if the advertiser is certified by Google. … Continue Reading

The CFPB has filed a lawsuit in a California federal district court against Freedom Debt Relief (FDR) and its CEO for alleged violations of the Consumer Financial Protection Act (CFPA) and the Telemarketing Sales Rule (TSR).  The CFPB’s press release describes Freedom as “the largest debt-settlement services provider in the United States.”… Continue Reading

Last week, the CFPB published a blog post with tips for consumers facing a cash flow emergency.

We were glad to see that the blog post included a warning to consumers about debt relief or settlement companies.  The CFPB advised consumers to beware of for-profit debt relief or settlement companies that promise to pay off consumers’ debts for “pennies on the dollar” or charge fees before settling debts, guarantee to eliminate unsecured debt, or tell consumers to stop communicating with creditors.… Continue Reading

The CFPB has issued its November 2016 complaint report which highlights complaints about “other financial services,” a category that includes debt settlement, credit repair, check cashing, and money orders.  The report also highlights complaints from consumers in Oklahoma and the Oklahoma City metro area.

General findings include the following:

  • As of November 1, 2016, the CFPB handled approximately 1,035,200 complaints nationally, including approximately 27,000 complaints in October 2016.
… Continue Reading

The CFPB has issued its January 2016 complaint report which highlights “other financial service” complaints and complaints from consumers in New York State and the New York metro area.  In addition to the major complaint categories consumers can use when submitting online complaints to the CFPB, there is a miscellaneous category labeled “other financial service.” … Continue Reading

The CFPB has announced that it has entered into a proposed consent order with Premier Consulting Group LLC and a related law firm to settle claims that the defendants charged consumers upfront fees in violation of the Telemarketing Sales Rule (TSR). The consent order requires the defendants to pay a civil penalty of $69,075 which, according to the CFPB, represents the amount of advance fees the defendants took from consumers who did not have any debts settled. … Continue Reading