Student Loan Group to pay $375K settlement for alleged debt relief scam

Student Loan Group lawsuitOn March 27, 2017, the North Carolina Attorney General (AG) issued a press release announcing that a settlement with a student loan company that allegedly operated a “student loan debt relief scheme.”

According to the press release, Student Loan Group, a private student loan company located in North Carolina, falsely promised to reduce a borrower’s student loan debt but instead charged illegal upfront fees and failed to deliver on its promises.


FTC settles with municipal debt collector for abusive collection practices

On March 24, 2017, the Federal Trade Commission (FTC) issued a press release announcing a consent order with American Municipal Services Corporation, a debt collection company accused of engaging in illegal collection tactics.

American Municipal Services Corporation is a debt collection firm that collects court fines, parking tickets, and debts for utility bills and other services on behalf of over 500 municipalities throughout various states.


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 set to begin 5-year review of mortgage rules

CFPB review of mortgage rulesEarlier this week, Chris D’Angelo, the CFPB’s Associate Director of Supervision, Enforcement and Fair Lending, discussed the CFPB’s plans to initiate its review of major mortgage regulations, including the qualified mortgage rule which established standards for lenders to follow to ensure that borrowers have the ability to repay their mortgages.

According to the Dodd-Frank Act, the CFPB must assess all of its rules five years after they take effect to ensure they are accomplishing the objectives of Dodd-Frank as well as the impact on financial institutions and consumers. The qualified mortgage rule and other significant mortgage regulations took effect in January 2013.


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