This regular publication by DLA Piper lawyers focuses on helping clients navigate the ever-changing consumer finance regulatory landscape.
CFPB announces $150,000 settlement with debt-relief companies for deceptive acts or practices. The CFPB announced a consent order with a debt-relief and credit-repair company and its principals for UDAAP and TSR violations concerning its marketing and sales practices. The CFPB alleged that the company (i) made false promises that its services would eliminate consumers’ credit card debt and improve their credit scores and (ii) charged illegal advance fees for debt-relief and credit-repair services. Under the terms of the settlement agreement, the defendants will be prohibited from telemarketing any consumer-financial products or services and from offering financial-advisory, debt-relief or credit-repair services.
FTC announces $18 million settlement with online lender for deceptive marketing practices. The FTC announced a consent order against an online lender for UDAAP violations concerning alleged misrepresentations in communications with loan applicants. The FTC alleged that the company, despite promising loan applicants that they would receive a specific loan amount with “no hidden fees,” charged consumers hundreds or thousands of dollars in upfront fees. Further, the company misrepresented to consumers that their loans were “on the way” and “100% backed” while knowing that many applicants would…