Links in “Fines, Penalties, Suits, and Settlements”

CFPB alleged EZCORP violated the CFPA by making false threats of legal action, misrepresented repayment and collections processes, and collecting debts through in-home visits, third-party calls, and calls to consumers workplaces. Further, CFPB asserted EZCORP violated the EFTA by demanding authorization of electronic transfers as a condition for granting loans. Per the resulting consent order, EZCORP will pay $7.5 million to customers and a $3 million civil penalty. [1/19/16]

He worked as a real estate sales associate, negotiated sales, concealed sales incentives from mortgage lenders intended for the buyers, and kept them, pocketing nearly a cool million, which probably sounded attractive, but now he is facing 150 years in prison, which works out to only about $6,700 per year, so...  [1/13/16]

The FBI is now investigating the circumstances under which Michael Anthony LaJoice, CFO of $68 million Clarkson Brandon Community Credit Union, embezzled $20 million over a period of 12 years. To explain how he could afford a $4.5 million home on his $65,000 salary, LaJoice told co-workers that he had received a large inheritance and told his wife that he had been lucky in the stock market. [1/12/16]

Michael Anthony LaJoice, CFO of $68 million Clarkson Brandon Community Credit Union in Clarkson, MI, confessed to local authorities that he had stolen $20 million from the credit union over a period of 12 years. In an interesting turn of events, LaJoice pleaded not guilty to embezzlement two days later. LaJoice is also the owner of a dance studio and a development company. [1/11/16]

Following a recent string of class action lawsuits against credit unions for their overdraft protection practices, two credit unions said “Enough is enough!” and have countersued the plaintiffs for breach of contract. Kern Schools FCU in Bakersfield, CA and Bethpage FCU in Bethpage, NY  claim that the plaintiffs repeatedly overdrew their checking accounts and now have unpaid negative balances, which means they have a personal interest that makes them improper persons to represent the class. [1/11/16]

Two payday lenders have agreed to pay the FTC $4.4 million and to waive $68 million in loan fees to settle claims that they illegally charged inflated and undisclosed fees to consumers. In one case, the lender advertised that a $300 loan would only cost $290 to repay, when in fact borrowers paid $975. The payday lenders were also cited for Reg. Z violations for failing to accurately disclose the APR and other loan terms. [1/7/16]

First, it was missing ATM signage and then it was credit card disclosures not posted on the credit union’s website. Now, at least 12 credit unions in nine states have been hit with class action lawsuits over their overdraft protection practices. The focus in these cases appears to be on the methodology used by the credit unions to assess overdraft protection fees. [1/6/16]

Court rules that CFPB is not "federalizing" state law, nor is it trying to establish a federal usury limit, as prohibited by the Consumer Financial Protection Act. [1/6/16]

The Federal Trade Commission charged two payday lenders in April of 2012, Red Cedar Services Inc. and SFS Inc, alleging that the lenders misrepresented how much loans would cost consumers, and failed to accurately disclose the annual percentage rate of other loan terms. Each company has paid $2.2 million to settle these charges, and have collectively waived $68 million in fees to consumers which were not collected as a result of these violations of the FTC Act and TILA. [1/6/16]

OCC releases JPMorgan Chase from business restrictions for violations regarding residential mortgage loan servicing and foreclosure practices, but hits it with a $48 million fine for earlier violations of the same practices. [1/6/16]