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An online debt-settlement company settled CFPB allegations that the company steered consumers toward high-cost loans offered by
affiliated lenders and failed to disclose affiliations with
creditors.
In a Complaint filed in the U.S. District Court for
the Central District of California, the CFPB alleged that the
company told consumers it was not owned or operated by
any of the consumers creditors when, in fact, the company was
affiliated with two of the creditors: one through ownership, and
the other through loans and agreements. The CFPB also alleged that
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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.
The proposed order requires SettleIt to pay consumer redress of at least approximately $646,000 and a $750,000 civil money penalty.
In its complaint, the CFPB alleged that SettleIt is affiliated with CashCall and LoanMe, creditors with whom it purports to settle debts on behalf of consumers. According to the complaint, SettleIt and CashCall are owned and controlled by the same individual and LoanMe has a financial relationship to that individual.
On April 6, the Consumer Financial Protection Bureau (CFPB) issued a
consent order against California-based debt collector Yorba Capital Management LLC and its sole owner Daniel Portilla, Jr. for violating the Consumer Financial Protection Act and the Fair Debt Collection Practices Act. The consent order permanently bans Yorba and Portilla from the debt collection business and orders restitution and penalties to resolve the findings of the CFPB.
The consent order states Yorba and Portilla allegedly harassed consumers from January 2017 until April 2020 by threatening legal action. Specifically, it states Yorba attempted to collect debts through mailing letters titled “LITIGATION NOTICE” that contained a case number and caption, giving the incorrect impression that Yorba had already filed a lawsuit. The letters stated: “You are hereby notified that a recommendation to file a lawsuit to collect this debt may be the next step resulting in a judgment entered against you,” and
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Welcome to Wiley’s update on recent developments and what’s next in consumer protection at the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC). In this newsletter, we analyze recent regulatory announcements, recap key enforcement actions, and preview upcoming deadlines and events. We also include links to our articles, blogs, and webinars with more analysis in these areas. We understand that keeping on top of the rapidly evolving regulatory landscape is more important than ever for businesses seeking to offer new and ground-breaking technologies.
Regulatory Announcements
CFPB fines Orange County debt-settlement firm SettleIt for abusive practices americanbanker.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from americanbanker.com Daily Mail and Mail on Sunday newspapers.