CFPB sues debt relief attorneys for collecting illegal fees

CFPB sues debt relief attorneysOn January 30, the CFPB issued a press release announcing that it had filed a lawsuit in a California district court against several debt relief law firms and individual attorneys. The CFPB alleged that the defendants offered debt relief services to consumers in violation of the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act (CFPA).

The defendants include two individual attorneys and three law firms. The individual attorneys and the entities are based in Orange County, California and Kansas City, Kansas. They offer debt relief services to consumers nationwide.


Cordray discusses future of CFPB in Trump era

CFPB Director CordrayOn January 24, at a Wall Street Journal event in Washington DC (video here), Cordray was asked about his job security amidst the change in administration. He explained that he intends to serve the remainder of his five-year term despite calls from Republican lawmakers for his removal. Cordray, who became the CFPB’s first-ever Director in 2013, explained that his term straddles two presidential terms by design. The reason? To ensure the independence of the position and the agency and to avoid partisan politics.


CFPB enters consent order with CitiFinancial for $8.8 million

On January 23, the CFPB issued a press release announcing that it entered into a consent order with CitiFinancial Servicing for alleged violations of the Real Estate Settlement Procedures Act (RESPA), the Fair Credit Reporting Act (FCRA), and the Consumer Financial Protection Act (CFPA).

CitiFinancial Servicing (CitiFinancial) is comprised of four entities incorporated in Delaware, 


CitiMortgage pays $20 million for alleged RESPA violations

On January 23, the CFPB issued a press release announcing that it has entered into a consent order with CitiMortgage, Inc. to resolve allegations that the mortgage servicer violated the Real Estate Settlement Procedures Act (RESPA) and the Dodd-Frank Act’s prohibition against deceptive acts or practices.

CitiMortgage is incorporated in New York and headquartered in O’Fallon, Missouri. It is a subsidiary of Citibank and mortgage servicer for government-sponsored entities including Fannie Mae and Freddie Mac.


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