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CFPB Settles With Affiliates of Debt Settlement Company For $107 Million

The Consumer Financial Protection Bureau (CFPB) reached a proposed $107 million settlement on Tuesday with several individuals affiliated with the World Law Group. According to the Bureau, defendants Derin Scott, David Klein, and Shannon Scott “received, directly or indirectly, funds or other assets” from World Law Group customers, after the debt settlement company collected millions in […]

CFPB

Online Lenders’ Use of ACH Can Lead to Cascading Fees, Account Closures for Consumers, CFPB Report Finds

Online lenders’ use of ACH networks to request payments can result in mounting fees and even account closure for borrowers with insufficient funds. That’s according to a new study from the CFPB, which took a look at the ACH behavior of lenders who, per the Bureau, make “online payday or other high-cost online loans with payments scheduled on a borrower’s payday.”

CFPB, DOJ Announce $21.9M Settlement with Toyota Motor Credit Corp.

Yesterday, the Consumer Financial Protection Agency and the Department of Justice announced a $21.9 million dollar settlement with the Toyota Motor Credit Corporation. The settlement – and the consent order that comes along with it – may seem of peripheral interest to the ARM industry, but the action offers sharp lessons for the ARM industry on how regulators are using data to track UDAAP violations and how regulators expect financial services agencies to balance employee discretion with agency-wide non-discrimination policies.