FTC

FTC Issues Order Against Debt Relief Company for Alleged Misrepresentations

On February 27, 2017, the Federal Trade Commission (FTC) entered into a stipulated order for permanent injunction and monetary judgment with defendants United Debt Counselors, LLC, a debt relief company, and its principals, banning the defendants from making misrepresentations about financial products and services and requiring the defendants to pay a $9…

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Operation Collection Protection Targets Abusive and Deceptive Debt Collectors

Late last year, the Federal Trade Commission (FTC) revealed an ongoing nationwide enforcement initiative targeting debt collectors, called Operation Protection Collection.  The initiative is the first of its kind coordinated crackdown by state and federal enforcers targeting abusive and deceptive debt collection practices.  According to statements by the FTC, the…

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Add-On Products Continue To Present Litigation Risks For Lenders

The Consumer Financial Protection Bureau’s recent action against two credit card vendors regarding credit monitoring and identity theft protection services is a reminder of the legal risks associated with certain add-on products. The July 1 settlement, in which the CFPB found that the vendors misled customers about the benefits of…

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Mortgage Servicer Agrees to Pay More Than $60 million for Alleged “Abusive” Collection Practices

The mortgage servicing industry remains under scrutiny, as evidenced by the recent joint enforcement action against Green Tree Servicing, LLC by the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC).   In a joint complaint filed in Minnesota, the regulators allege that Green Tree, through its collection activities…

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Is Knowing Enough? The FTC's Concerns Regarding Mobile Banking Practices May Force You to Do ...

On September 10, 2014, the Federal Trade Commission (FTC) posted a comment in response to the Consumer Financial Protection Bureau’s (CFPB) request for information regarding the use of mobile banking services and products specifically utilized by economically vulnerable or underserved consumers.  After briefly articulating some of the benefits of mobile…

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Retailers Beware: Shopping Apps Can Cost You, Too

Online shopping is widespread, and by now, most retailers have tailored their websites to ensure consumers are fully aware of their privacy, security, and dispute resolution rights and liabilities in buying products online.  However, as retailers and other companies increasingly launch mobile applications to allow their customers to purchase items…

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FTC Settles with Auto Lender over Improper Servicing, Collection, and Quality Control Practices

The Federal Trade Commission (FTC) recently announced a $5.5 million monetary and injunctive settlement with auto lender Consumer Portfolio Services, Inc. (CPS) concerning allegations that the company used illegal tactics in servicing and collecting consumers’ auto loans, and failed to adopt proper quality controls, in violation of Section 5 of…

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