CFPB files lawsuit against debt collection law firm

CFPB files lawsuit against debt collection law firmOn April 17, 2017, the CFPB announced that it had filed a lawsuit in federal district court against a debt collection law firm for allegedly misrepresenting the level of attorney involvement in demand letters and phone calls placed to consumers.

According to the Bureau, the law firm Weltman, Weinberg & Reis (WWR) falsely represented in “millions of collection letters sent to consumers that attorneys were involved in collecting the debt.” The law firm also allegedly made statements on collections calls that created a false impression that attorneys had meaningfully reviewed the consumer’s file, when no such review had occurred. In fact, the Bureau alleges that in many cases “no attorney had reviewed any aspect of a consumer’s individual debt or accounts.”


Why hasn’t Trump fired CFPB Director Cordray?

Why hasn't Trump fired Cordray?On April 17, 2017, Politico reported that top White House economic aide, Gary Cohn, recently met with CFPB Director Richard Cordray and delivered an ultimatum: Resign or face removal by President Trump.

According to the article, Cohn “had heard the rumors that Director Cordray wanted to run for governor in Ohio.” According to people familiar with the meeting, Cohn left the dinner thinking that those rumors were accurate. As a result, the White House opted to delay efforts to fire Cordray because the Trump Administration feared that ousting Cordray might “cause a sensation that could boost his candidacy and juice his fundraising.”


Massachusetts AG reaches settlement with mortgage broker for deceptive practices

Massachusetts AG reverse mortgagesThe Massachusetts Attorney General’s Office (AG) issued a press release on April 11, 2017, announcing that it had reached a settlement with mortgage broker, Direct Finance Corp., one of its loan originators and an outside insurance agent to resolve claims that the defendants preyed on elderly homeowners.

In August 2015, the AG filed a lawsuit alleging that the defendants had engaged in sales tactics that convinced elderly homeowners to apply for reverse mortgages and invest their proceeds in risky financial products, including variable annuities. In some cases, those annuities included severe withdrawal penalties if the consumer accessed more than a small percentage of their proceeds during the first few years of the annuity.


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