Posts Tagged ‘State AGs’

Massachusetts AG reaches settlement with mortgage broker for deceptive practices

Massachusetts AG reverse mortgagesThe Massachusetts Attorney General’s Office (AG) issued a press release on April 11, 2017, announcing that it had reached a settlement with mortgage broker, Direct Finance Corp., one of its loan originators and an outside insurance agent to resolve claims that the defendants preyed on elderly homeowners.

In August 2015, the AG filed a lawsuit alleging that the defendants had engaged in sales tactics that convinced elderly homeowners to apply for reverse mortgages and invest their proceeds in risky financial products, including variable annuities. In some cases, those annuities included severe withdrawal penalties if the consumer accessed more than a small percentage of their proceeds during the first few years of the annuity.

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.

Santander settles unfair subprime auto loan case for $26 million

Santander subprime auto loan settlementSantander has agreed to pay $26 million to settle allegations that the bank issued high-interest loans to thousands of consumers who could not afford to repay them. The settlement was announced on March 29, 2017, by Massachusetts Attorney General Maura Healey and Delaware Attorney General Matthew Denn.

According to the press release from the State of Delaware, an investigation into the financing and securitization of Santander’s subprime auto loans revealed that the bank funded loans without having a reasonable basis to believe that the borrowers could afford them. According to the Delaware consent order, Santander predicted that “more than half” of the subprime loans acquired from certain Delaware auto dealers would default.

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.