Colorado AG announces $491,000 judgment against debt collection agency

Peak Resolution lawsuitOn April 5, 2017, the Colorado Attorney General’s Office issued a press release announcing that it had secured a judgment requiring a debt collection agency and two of its principals to pay approximately $491,000 in consumer restitution, penalties, and attorney fees. The judgment also prohibits the defendants from conducting business in Colorado or from collecting debts from Colorado citizens without proper licensing and full legal compliance.


PHH filed its reply brief with the DC Circuit

PHH argues CFPB unconstitutionalOn April 10, 2017, PHH filed its reply brief with the DC Circuit in the en banc rehearing of the PHH v. CFPB case. In its brief, PHH argues that if the Bureau’s single-director-removable-only-for-cause structure is constitutional, then there is essentially no limit to Congress’s authority to divest the President of all executive power. PHH argues: “[I]f Congress can divest the President of power to execute the consumer financial laws, then it may do so for the environmental laws, the criminal laws, or any other law affecting millions of Americans.” According to PHH, “The absence of any discernible limiting principle is a telling indication that the CFPB’s view of the separation of powers is wrong.”


NetSpend to pay $53 million in settlement with FTC

NetSpend FTCLast week, the FTC announced that NetSpend, one of the nation’s largest providers of prepaid debit cards, had agreed to pay $53 million to settle allegations that it deceived consumers about their ability to access funds loaded onto their cards.

In November 2016, the FTC filed a lawsuit alleging that NetSpend engaged in misleading advertising practices in violation Section 5 of the FTC Act which prohibits unfair or deceptive acts or practices. The FTC’s complaint alleged that NetSpend made misrepresentations in marketing materials and on its website that led consumers to believe that the cards were “ready-to-use,” that they would have “immediate access” to funds loaded onto their cards, and that their money is “always available.” NetSpend also claimed that consumers are “guaranteed approval” for a card.


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