The Consumer Financial Protection Bureau on June 2 announced a settlement with a Tennessee-based company and its subsidiaries that provide short-term loans (payday or auto-title) for the lenders' conduct at all stages of their operations, including providing “deceptive finance charge disclosures … failing to refund overpayments ... and engaging in unfair debt collection practices.”
Posts published in “Consumer Protection Defense & Compliance”
On March 26, the Texas attorney general acted swiftly, filing a lawsuit against Auctions Unlimited LLC over an online auction that ended on March 24. The auction sparked an article published by the Chicago Tribune entitled “more than 750,000 masks auctioned for huge markup in Texas while hospitals run out nationwide.”
Following its enaction, the Dodd-Frank Act left the financial services industry with uncertainty in many areas. For nearly 10 years, the industry has wondered and speculated about the inclusion of a prohibition against abusive acts and practices. What exactly is abusive conduct? Is abusive conduct different from false and misleading acts or unfairness? How will the CFPB handle enforcement?
The Consumer Financial Protection Bureau filed a significant enforcement action on Jan. 9 against several companies and individuals marketing student loan debt-relief services for credit reporting violations, charging advance fees and deceptive conduct.
The Federal Trade Commission on Wednesday announced a major consumer protection law enforcement action and settlement against a Texas-based company for engaging in an unlawful pyramid scheme. The company, its former CEO, and two top promoters are banned from engaging in any multi-level marketing business. In addition, the company and CEO have agreed to pay $150 million. During Wednesday’s press conference, Andrew Smith, director of the FTC’s Bureau of Consumer Protection, noted that “multi-level marketing is not inherently illegal.” An illegal pyramid scheme encourages new business opportunities involving without looking at whether participants have a meaningful opportunity for selling products.…