The CFPB recently entered into a consent order with Nationwide Equities Corporation (Nationwide), which the CFPB refers to as a mortgage broker and mortgage lender that primarily provides jumbo reverse mortgage loans and Home Equity Conversion Mortgage Loans (HECMs). The CFPB asserts in the consent order that Nationwide engaged in direct mail advertising practices that violated the Mortgage Acts and Practices—Advertising Rule (the “MAP Rule,” also known as Regulation N), the closed-end advertising requirements of Regulation Z under the Truth in Lending Act (TILA), and the prohibition against unfair, deceptive or abusive acts or practices under the Consumer Financial Protection Act of 2010 (the “CFPA”).… Continue Reading
New article argues for use of federal and state laws prohibiting unfair acts or practices to bring discrimination claims
By Ballard CFS Group on
An article recently published by the Student Borrower Protection Center titled “Discrimination is ‘Unfair’,” argues that the CFPB, FTC, state attorneys general and regulators, and in some cases private individuals, should consider challenging discrimination as an “unfair” practice covered by federal and state laws prohibiting unfair, deceptive, or abusive acts and practices. … Continue Reading
CFPB enters into proposed settlement of lawsuit filed against debt settlement company alleging abusive conduct in violation of CFPA
By Ballard CFS Group on
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
CA Dept. of Financial Protection and Innovation uses new CCFPL authority to take enforcement action against individual and companies that advertised PACE financing and solicited consumers
By Ballard CFS Group on
The California Department of Financial Protection and Innovation (DFPI) announced last week that it has entered into a consent order that permanently bars James Berry and any company he owns or controls from soliciting customers for Property Assessed Clean Energy (PACE) financing and seeking future enrollment as a solicitor for PACE programs. … Continue Reading
CFPB rescinds 2020 policy statement on abusive acts or practices
By Ballard CFS Group on
The CFPB announced yesterday that it is rescinding its January 2020 policy statement, “Statement of Policy Regarding Prohibition on Abusive Acts or Practices.” The rescission is effective on the date the CFPB’s notice of the rescission is published in the Federal Register.
The rescission was foreshadowed by Acting Director Uejio in his statement to Bureau staff which he shared in a blog post early last month. … Continue Reading
PA Supreme Court rules proof of defendant’s state of mind not required for deception claim under UTPCPL
By Martin C. Bryce, Jr. on
Posted in Litigation and Court Decisions, UDAAP
The Pennsylvania Supreme Court issued its highly anticipated decision in Gregg v. Ameriprise Financial, Inc. at the end of last week.
In 1996, the General Assembly amended the catchall provision of the Unfair Trade Practices and Consumer Protection Law, 73 P.S. 201-2(4)(xi), to prohibit anyone who advertises, sells, or distributes goods or services from “engaging in any deceptive conduct .… Continue Reading
The CFPB’s new LEP guidance: What does it tell us?
By Ballard CFS Group on
As we recently reported, the CFPB released new guidance on January 13, 2021, in an effort to give industry participants more concrete guidance about how to tackle the sometimes-daunting issue of serving customers in non-English languages. Director Kraninger announced the guidance in a blog post of her own, and reached out with telephone calls to announce the release of the guidance. … Continue Reading
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 loans to consumers.… Continue Reading
Second Circuit sends CFPB ratification issue back to district court in RD Legal Funding
By Alan S. Kaplinsky on
Less than one month after hearing oral argument in RD Legal Funding, the U.S. Court of Appeals for the Second Circuit has issued a summary order affirming the district court’s holding that the Dodd-Frank Act’s single-director-removable-only-for-cause provision is unconstitutional, reversing its holding that the provision is not severable, and remanding the case to the district court “to consider in the first instance the validity of Director Kraninger’s ratification of this enforcement action.” … Continue Reading
CFPB Enters into a Settlement with ITT Private Loan Investors
By Rene T. McNulty on
It appears that the final chapter of the ITT Educational Services, Inc. (“ITT”) story was written last week with the CFPB’s announcement that it entered into a stipulated settlement with PEAKS Trust 2009-1 (“PEAKS”), a special purpose entity created in 2009 to purchase, own, and manage certain private student loans with students enrolled at ITT.… Continue Reading