CashCall to pay $15 million settlement for illegal Virginia online lending scheme

CashCall lawsuitOn January 31, the Virginia Attorney General issued a press release announcing a settlement with CashCall, Inc., a small-dollar online lender that allegedly engaged in illegal lending practices.

According to the Virginia Attorney General’s complaint, CashCall engaged in a “rent-a-tribe” scheme, using a South Dakota company with a purported Native American tribe affiliation called Western Sky Financial, LLC as a front for marketing and offering high-cost installment loans.

CFPB fines Prospect Mortgage $3.5 million for illegal kickbacks scheme

CFPB fines Prospect MortgageOn January 31, the CFPB fined Prospect Mortgage $3.5 million for allegedly paying illegal kickbacks for mortgage business referrals. The CFPB also took action against Keller Williams Realty Mid-Willamette, ReMax Gold Coast, and Planet Home Lending for accepting illegal kickbacks from Prospect Mortgage.

The CFPB alleged that the entities engaged in various practices involving illegal kickbacks for referrals of mortgage business in violation of the Real Estate Settlement Procedures Act (RESPA). RESPA prohibits kickbacks and referral fees in connection with a real estate settlement such as title insurance, inspections, appraisals, and loan origination.

CFPB sues Virginia pawnbroker for inaccurate APR disclosures

CFPB sues WoodbridgeOn February 2, the CFPB and Virginia Attorney General filed a lawsuit in federal court against Woodbridge Coins and Jewelry Exchange, Inc., doing business as Woodbridge Gold & Pawn (Woodbridge). Woodbridge’s principal place of business is in Woodbridge, Virginia. Woodbridge operates as a pawnbroker, issuing closed-end loans secured by personal property.

The complaint alleges that Woodbridge’s actions violated the Truth in Lending Act (TILA), the Consumer Financial Protection Act (CFPA), Virginia’s pawnbroker statutes, and the Virginia Consumer Protection Act.