Links in “Fines, Penalties, Suits, and Settlements”
- Breaking Down the CFPB’s Recent Reg. N Actions
Last week, the CFPB took action against three mortgage companies for violations of the Mortgage Acts and Practices Advertising Rule, its first actions since it issued warning letters to several institutions in 2012. See what got these three companies into hot water for their direct-mail advertisements. (Hint: Imply a government affiliation and you're looking for trouble.) [2/18/15]
- Everything’s Bigger in Texas, Including Deception
The FTC recently released a final order against a Dallas auto dealer for deceptive advertising practices. Trophy Nissan auto dealership must cease misrepresenting the terms of promotions in advertisements provided to customers. [2/17/15]
- CFPB Takes Action on False Mortgage Advertising
The CFPB took action against three mortgage companies for misleading consumers with advertisements implying US government approval of their products and suggested affiliation with US government in violation of the 2011 Mortgage Acts and Practices Advertising Rule. [2/13/2015]
- It’s a New Day for the CFPB: NewDay Financial LLC Pays Big
The CFPB has taken action against a Maryland-based nonbank lender, NewDay Financial, for deceptive advertising and kickback schemes. The company will pay $2 million in civil money penalties. [2/11/15]
- Deceptive Ads, Kickbacks Cost Maryland Lender $2M
Maryland-based lender NewDay Financial was hit for a $2 million penalty for deceiving consumers about a veteran's organization's endorsement and for a scheme to pay kickbacks for customer referrals. [2/11/15]
- CU Helps Bust Massive Tax Fraud Scheme
Alert employees at Widget Financial Credit Union in Erie, PA, are being credited by federal authorities with helping to break an extensive tax refund scam involving the use of 11,468 stolen identities used to open 3,493 accounts at 443 credit unions and banks. In all, authorities say that the 16 people indicted in the scam sought to obtain more than $38 million in fraudulent tax refunds. [2/10/15]
- Merger Strategy Backfires
OneWest Bank in California had set up a website that generated more than 2,000 form letters urging regulators to approve its merger with CIT Group without a public hearing. Apparently the Fed and community groups were not amused. A public hearing has now been scheduled for later this month, where opponents are expected to raise CRA and "too big to fail" concerns. [2/9/15]
- FDIC Reliance on D’Oench Doctrine Reversed by Sixth Court
The Sixth Circuit Court renewed a Detroit-based commercial law corporationâs lawsuit against the FDIC for $176,750 in deferred attorneyâs fees for legal services provided by the corporation to a now-failed Michigan bank. The FDIC had relied upon the DâOench doctrine, a 1940s case which focused on the inability to demand rights against the FDIC when evidence such as non-written statements are relied upon. [2/6/15]
- Former CU President Arrested and Facing Multiple Charges
Multiple charges is an understatement. Jonathan Wade Dunning, former president of the now-liquidated Birmingham Financial Federal Credit Union, is facing  a 112-count indictment for bank fraud, money laundering, wire fraud, and conspiracy. [2/5/15]
- CFPB Charges Credit Card Company
Continental Finance Company LLC must refund $2.7 million to consumers and pay a civil penalty of $250,000 for charging illegal credit card fees. [2/5/15]
