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Category Archives: Consumer Protection Litigation

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CFPB Issues First Enforcement Action Under New Mortgage Servicing Rules

Posted in Consumer Protection Litigation, Federal Agencies

On September 29, 2014, the Consumer Financial Protection Bureau (CFPB) announced it had issued its first enforcement order under the agency’s new mortgage servicing rules that went into effect in January 2014.  The action claims that the servicer, a Michigan-based federal savings bank and loan servicer, did not comply with the agency’s servicing rules concerning loss mitigation efforts… Continue Reading


Posted in Consumer Protection Litigation, Federal Agencies, Financial Services Litigation, Uncategorized

On May 22, 2014, the Consumer Financial Protection Bureau (CFPB) issued its Spring 2014 Supervisory Highlights Report – its fourth such report since the agency’s founding.  The report includes a review of recent rulemaking, guidance, and enforcement activity.  The CFPB used its fourth report to focus on the importance of compliance management systems.  “In this… Continue Reading

FTC Settles First Text Message Debt Collection Action

Posted in Consumer Protection Litigation

On September 25, the Federal Trade Commission (FTC) announced it had settled its first case  alleging that a debt collector had unlawfully used text messaging while attempting to collect debts. The August 23 complaint alleged that two Glendale, California based debt collection companies violated the Fair Debt Collection Practices Act (FDCPA) and FTC Act by failing to disclose in English-… Continue Reading

Mortgage Servicing Settlement Reached

Posted in Consumer Protection Litigation

February 9, 2012.  Today government officials, including  Attorney General Eric Holder, announced a $26 billion settlement with five banks to settle allegations of mortgage servicing and foreclosure processing errors. The agreement, reached with Bank of America Corp., JPMorgan Chase & Co., Citigroup Inc., Wells Fargo & Co., and Ally Financial Inc., resolves allegations related to foreclosure practices in 2009… Continue Reading

AZ Court Dismisses 72 Lawsuits Against MERS; Confirms Its Role as Beneficiary

Posted in Consumer Protection Litigation

October 3, 2011.  Arizona U.S. District Judge James Teilborg dismissed 72 lawsuits, including six class actions, against Mortgage Electronic Registration Systems Inc. (MERS) that challenged MERS’ role as a beneficiary on deeds of trust.  The plaintiffs in the consolidated actions claimed that because MERS is not a proper beneficiary the deeds of trust to which they agreed are unenforceable, leaving the… Continue Reading

Bank Settles Military Mortgage Foreclose Case with DOJ

Posted in Consumer Protection Litigation

On May 26, 2011, the U.S. Department of Justice announced a $20 million settlement with units of Bank of America and Morgan Stanley to resolve allegations of improper foreclosures on about 160 military members between 2006 and 2009.  The government alleged that the foreclosures, many concerning foreclosures that were taken or started by Countrywide Mortgage… Continue Reading

VA Federal Court: HOLA Preempts Tort Claims Alleging Savings Bank Posed as Lender to Collect Fees

Posted in Consumer Protection Litigation

April 4, 2011 – The U.S. District Court for the Eastern District of Virginia held that the Home Owner’s Loan Act (HOLA) preempts state tort law claims alleging that Flagstar Bank F.S.B. improperly represented itself as as a lender to collect brokerage fees on a home mortgage (Down v. Flagstar Bank F.S.B., E.D. Va., No. 3:10-cv-847, 4/4/11). … Continue Reading