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.”


CFPB hits Experian with $3 million fine

Experian CFPBOn March 23, 2017, the CFPB announced in a press release that it had entered into a consent order with Experian to resolve allegations that the credit reporting agency had misrepresented the credit scores it marketed and sold to consumers. Under the terms of the consent order, Experian will pay a civil money penalty of $3 million. In addition, the CFPB ordered Experian to “truthfully represent” to customers how its credit scores are used and required it to implement an effective compliance management system.


CFPB fines Nationstar $1.75 million for HMDA violations

nationstar CFPB fineOn March 15, 2017, Nationstar Mortgage entered into a consent order with the CFPB to resolve alleged violations of the Home Mortgage Disclosure Act (HMDA). Nationstar will pay a $1.75 million civil money penalty for what the CFPB has termed “persistent and substantial reporting errors” that occurred between 2012 and 2014. According to the Bureau, this is the largest penalty for HMDA violations that the CFPB has imposed to date.

According to the consent order, Nationstar has “a history of HMDA non-compliance” which dates back to November 2011 when Nationstar entered into a consent order with the Massachusetts Division of Banks for violations related to HMDA and Regulation C.


DC Circuit grants rehearing in PHH v. CFPB

CFPB rehearing grantedToday, the DC Circuit granted the CFPB’s petition for rehearing en banc regarding a ruling issued last October by a three-judge panel that declared the CFPB’s structure unconstitutional.

The court ordered that the panel’s October 11, 2016 judgment be vacated. The court also set a briefing schedule: PHH must submit its opening brief by March 10. The court set a March 31 deadline for the CFPB’s opening brief and an April 10 due date if PHH chooses to file a reply. Oral argument is set for May 24.


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