Loan service and referral companies pay $8 million in settlement with Florida AG

On February 14, 2017, the Florida Attorney General’s Office issued a press release announcing that it had entered into three consent judgments and one settlement with four related loan service companies and operators.

The consent judgments and settlement resolve allegations that the companies engaged in acts and practices in violation of the Florida Deceptive and Unfair Trade Practices Act (FDUPTA). According to the press release, the companies convinced consumers to pay illegal upfront fees by falsely guaranteeing that a lender in the companies’ lender network had pre-approved the consumers for loans.


Georgia AG reaches $40 million settlement with online payday lender

CashCall Georgia On February 9, the Georgia Attorney General’s Office issued a press release announcing that it reached a settlement with online payday lenders Western Sky Financial, CashCall and affiliates (Defendants). The settlement resolved the Georgia AG’s multi-year legal battle with the California-based online lender for charging illegal interest and fees under an alleged “rent-a-tribe” scheme.  


HUD reaches $1.25 million settlement with mortgage lender for concealing defaults from FHA

Franklin First FHA lawsuitOn February 7, the US Attorney for the Eastern District of New York, the Office of the Inspector General for the Department of Housing and Urban Development (HUD), and the Inspector General for the Federal Deposit Insurance Corporation (FDIC) issued a press release announcing a settlement agreement with residential mortgage lender, Franklin First Financial, Ltd. (Franklin First).

The lawsuit, which was filed in September 2015, alleged that Franklin First and several executives conspired to hide their high default rate from HUD so it could continue to issue loans insured by the Federal Housing Administration (FHA).


CFPB sues company that scammed 9/11 first responders out of millions in payouts from victim compensation funds

CFPB 9/11On February 7, 2017, the CFPB and New York Attorney General filed a lawsuit against a New Jersey-based law firm and its owner for allegedly engaging in deceptive business practices and false advertising that lured 9/11 first responders and NFL concussion victims into obtaining costly cash advances on lawsuit and settlement payouts.

New York Attorney General, Eric Schneidermann, stated that the defendants “used deceptive tactics to charge unlawfully high interest rates for advances on settlement and compensation funds, allowing them to profit off the backs of these unsuspecting individuals.”


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