A recent settlement between the U.S. Department of Justice and a media conglomerate underscores the importance of implementing robust Telephone Consumer Protection Act compliance measures, including for third-party vendors. In 2017, a jury found DISH Network LLC liable for its vendors’ violations of the Telemarketing Sales Rule and the Telephone Consumer Protection Act, as well as several state statutes. … Continue Reading
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CFPB Files First Ever Redlining Complaint Against a Non-Bank Mortgage Lender
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
DOJ settles ECOA claims against Maryland used car dealership
The Department of Justice recently announced that it had settled a lawsuit filed in 2019 that alleged a Maryland used car dealership discriminated against African Americans in violation of the Equal Credit Opportunity Act by offering different credit terms based on race. The settlement includes the DOJ’s claims against the dealership’s individual owner and its manager.… Continue Reading
Justice Department Obtains Its Largest Ever Settlement Against A Property Management Company for Alleged Violations of the Servicemembers Civil Relief Act
The Justice Department announced in a March 15 press release that it has reached an agreement with property management company PRG Real Estate Management (PRG) and several related entities to settle claims that PRG violated the Servicemembers Civil Relief Act (SCRA) by obtaining evictions and money judgments against service-member tenants by filing affidavits that did not accurately reflect the tenants’ military status.… Continue Reading
Largest-Ever Crackdown Against Elder Fraud Led by the Department of Justice
On March 7, 2019, the DOJ announced the largest coordinated sweep of elder fraud cases to date. Joined by the FBI and other federal and state partners, the DOJ held a press conference detailing the results of the coordinated effort. Coordinated law enforcement actions in the past year, they said, resulted in criminal cases against more than 260 defendants who victimized more than 2 million Americans, most of them elderly.… Continue Reading
Justice Dept. Obtains $80,000 Consent Order with California Auto Lender, Including Record Payment of $30,000 to One Individual Servicemember, for Improper Repossession of Servicemember Vehicles
On March 6, 2019, a California subprime auto lender, California Auto Finance, agreed to enter into a consent order with the Justice Department related to allegations that it repossessed vehicles in violation of the Servicemembers Civil Relief Act (SCRA). Under the terms of the consent order, which is still subject to court approval, California Auto Finance must pay $50,000 in civil penalties to the government and $30,000 in compensation to one individual servicemember – the highest amount the Department has ever recovered for one servicemember.… Continue Reading
DOJ announces settlement of SCRA claims for auctioning of towed vehicles without court orders
The Department of Justice recently announced it had entered into an agreement with the City and County of Honolulu, Hawaii (Honolulu) and its general contractor for towing services to settle a lawsuit filed by the DOJ alleging that Honolulu and the general contractor violated the Servicemembers Civil Relief Act (SCRA) by auctioning or otherwise disposing of motor vehicles owned by servicemembers that were deemed abandoned without first obtaining court orders.… Continue Reading
State AGs urge SCOTUS to review Ninth Circuit cy pres class action settlement decision; DOJ to step up CAFA class action settlement review
A bipartisan group of 16 state attorneys general has filed an amicus brief in support of a petition for certiorari asking the U.S. Supreme Court to review a Ninth Circuit decision upholding the district court’s approval of a class action cy pres settlement. The petition was filed by objectors to the settlement.… Continue Reading
Federal jury convicts operator of payday lenders sued by CFPB and FTC
Richard Moseley Sr., the operator of a group of interrelated payday lenders, was convicted by a federal jury on all criminal counts in an indictment filed by the Department of Justice, including violating the Racketeer Influenced and Corrupt Organizations Act (RICO) and the Truth in Lending Act (TILA). The criminal case is reported to have resulted from a referral to the DOJ by the CFPB.… Continue Reading
Auto-finance companies agree to pay nearly $800,000 to settle Justice Department allegations regarding SCRA auto repossession violations
The United States Department of Justice announced last week that Westlake Services LLC and its subsidiary, Wilshire Consumer Capital LLC, have agreed to pay $760,788 to resolve allegations the companies violated the Servicemembers Civil Relief Act (“SCRA”) by repossessing 70 vehicles owned by SCRA-protected servicemembers without obtaining the required court orders.… Continue Reading