When we take an enforcement action against an entity or person
we believe has violated the law, we will post court documents
and other related materials here.
The Bureau may enforce the law by filing an action in federal
district court or by initiating an administrative adjudication
proceeding. Administrative proceedings are conducted by an
Administrative Law Judge, who holds hearings and issues a
recommended decision. Proceedings are conducted in accordance with
the
Rules of Practice for Adjudication Proceedings.
On September 14, 2020, the Consumer Financial Protection
Bureau issued a consent order against ClearPath Lending,
Inc. (ClearPath), a California corporation that is
licensed as a mortgage broker or lender in about 22
states.
On October 15, 2020, the Consumer Financial Protection
Bureau (Bureau) filed a proposed stipulated final judgment
and order to settle its lawsuit against Encore Capital
Group, Inc., and its subsidiaries, Midland Funding, LLC;
Midland Credit Management, Inc.; and Asset Acceptance
Capital Corp.
On September 8, 2020, the Consumer Financial Protection
Bureau (Bureau), in partnership with the New York Attorney
General, filed suit in the federal district court for the
Western District of New York against a network of five
different companies based outside of Buffalo, New York,
two of their owners, and two of their managers, for their
participation in a debt-collection operation using illegal
methods to collect debts.
On September 2, 2020, the Consumer Financial Protection
Bureau issued a consent order against Accelerate Mortgage,
LLC (Accelerate), a Delaware limited liability corporation
that is licensed as a mortgage broker and lender in about
31 states.
On September 1, 2020, the Consumer Financial Protection
Bureau issued a consent order against Service 1st
Mortgage, Inc. (Service 1st), a Maryland-based corporation
that is licensed as a mortgage broker or lender in about
12 states.
On September 1, 2020, the Consumer Financial Protection
Bureau issued a consent order against Hypotec, Inc., a
Miami-based corporation that is licensed as a mortgage
broker or lender in eight states.
On August 31, 2020, the Bureau issued a consent order
against Sigue Corporation and its subsidiaries, SGS
Corporation and GroupEx Corporation, which are all
headquartered in Sylmar, California and provide consumers
with international money-transfer services, including
remittance-transfer services.
On August 31, 2020, the Bureau issued a Consent Order
against Trans-Fast Remittance LLC (Trans-Fast).
Trans-Fast, which until recently was a remittance transfer
provider, is based in New York, New York and licensed in
over 30 states.
On August 26, 2020, the Consumer Financial Protection
Bureau (Bureau) issued a consent order against
PHLoans.com, Inc. (PHLoans), a California corporation that
is licensed as a mortgage broker or lender in about 11
states.
On August 21, 2020, the Consumer Financial Protection
Bureau (Bureau) issued a consent order against Go Direct
Lenders, Inc. (Go Direct), a California corporation that
is licensed as a mortgage broker or lender in about 11
states.
On August 20, 2020, the Bureau issued a consent order
against TD Bank, N.A. regarding its marketing and sale of
its optional overdraft service: Debit Card Advance (DCA).
On July 24, 2020, the Consumer Financial Protection Bureau
issued a consent order against Prime Choice Funding, Inc.
(Prime Choice), a California corporation that is licensed
as a mortgage broker or lender in about 35 states and the
District of Columbia. The Bureau found that Prime Choice
violated the CFPA’s prohibition against deceptive acts and
practices, the MAP Rule, and Regulation Z.
On July 24, 2020, the Consumer Financial Protection Bureau
issued a consent order against Sovereign Lending Group,
Inc. (Sovereign), a California corporation that is
licensed as a mortgage broker or lender in about 44 states
and the District of Columbia. The Bureau found that
Sovereign violated the CFPA’s prohibition against
deceptive acts and practices, the MAP Rule, and Regulation
Z.
On July 15, 2020, the Bureau filed a lawsuit against
Townstone Financial, Inc., a nonbank retail-mortgage
creditor and broker based in Chicago. Illinois. The Bureau
alleged that Townstone violated the Equal Credit
Opportunity Act (ECOA); its implementing regulation,
Regulation B; and the Consumer Financial Protection Act
(CFPA).
On July 13, 2020, the Bureau filed a complaint in the
federal district court for the Central District of
California against GST Factoring, Inc., which runs a
student-loan debt-relief business in Texas, and two of its
owners, Rick Graff and Gregory Trimarche, as well as
Champion Marketing Solutions, LLC, a customer service and
marketing company, and its owner, Scott Freda. The Bureau
also filed suit against four attorneys, California
attorneys Amanda Johanson and Jacob Slaughter, Arizona
attorney David Mize, and Florida attorney Daniel Ruggiero.
On July 7, 2020, the Consumer Financial Protection Bureau
settled with Timemark, Inc., a company based in Deerfield
Beach, Florida, that provides debt-relief services to
consumers with federal student-loan debt, and with its
owners and officers, Timothy Lenihan, Sr., Mark Nagler,
and Casey Gassaway.
On July 6, 2020, the Consumer Financial Protection Bureau
(Bureau) filed a lawsuit against My Loan Doctor LLC, a
Delaware company operating in West Palm Beach, Florida and
New York City and doing business as Loan Doctor (Loan
Doctor), and its founder, Edgar Radjabli.
On June 23, 2020, the Consumer Financial Protection Bureau
settled with Harbour Portfolio Advisors, LLC (Harbour);
National Asset Advisors, LLC (NAA); and National Asset
Mortgage, LLC (NAM), companies that worked together to
issue contracts for deeds to consumers.
On May 22, 2020, the Bureau and Commonwealth of
Massachusetts Attorney General Maura Healey jointly filed
a lawsuit against Commonwealth Equity Group, LLC, which
does business as Key Credit Repair, and Nikitas Tsoukales
(also known as Nikitas Tsoukalis), Key Credit Repair’s
president and owner.
On May 11 2020, the Consumer Financial Protection Bureau
(Bureau) issued a consent order against Specialized Loan
Servicing, LLC (SLS), a mortgage-loan servicer in
Colorado.
On April 1, 2020, the Consumer Financial Protection Bureau
issued a consent order against Cottonwood Financial, Ltd.,
which does business under the name Cash Store.
On March 9, 2020, the Bureau filed a lawsuit in federal
district court in the Northern District of Illinois
against Fifth Third Bank, National Association.
On February 20, 2020, the Bureau, the South Carolina
Department of Consumer Affairs, and the State of Arkansas
Attorney General Leslie Rutledge filed a...
On January 30, 2020, the Bureau filed a lawsuit against
Citizens Bank, N.A. (Citizens), alleging violations of the
Truth and Lending Act (TILA) and its implementing
Regulation Z, including TILA provisions passed under the
Fair Credit Billing Act (FCBA) and Credit Card
Accountability Responsibility and Disclosure Act (CARD
Act), as well as violations of the Consumer Financial
Protection Act of 2010 (CFPA) due to its violations of
TILA and Regulation Z.
