In February 2015, the CFPB issued consent orders against American Preferred Lending and Flagship Financial, and sued All Financial Services, alleging they “falsely implied affiliation with the U.S. government.” According to the CFPB, All Financial “sent mailings to nearly 200,000 people that had an eagle resembling the Great Seal of the United States,” Flagship Financial sent “more than one million mailers claiming it was ‘approved’ by the U.S. Department of Housing and Urban Development, as well as ‘tens of thousands of mailers’ resembling government notices,” and American Preferred Lending sent “more than 100,000 mailings with a logo claiming it was a Federal Housing Administration lending institution.” The CFPB ordered Flagship “to pay a civil penalty of $225,000,” American Preferred to pay $85,000 and All Financial to pay $13,000.

• The CFPB issued a consent order to American Preferred Lending, Inc. [CFPB file no. 2015-CFPB-0005 (American Preferred Lending, Inc.), filed 02/12/15]

• The CFPB issued a consent order to Flagship Financial Group, LLC. [CFPB file no. 2015-CFPB-0006 (Flagship Financial Group, LLC.), filed 02/12/15]

• The CFPB filed a lawsuit against All Financial Services in US District Court for the District of Maryland Baltimore Division. [CFPB v. All Financial Services, case no. 1:15-cv-420, filed 02/12/15]

• The CFBP “took action” against three mortgage companies that allegedly “falsely implied affiliation with the U.S. government.”

The CFPB claimed they “‘imitated U.S. government notices’ in mailings to consumers. The complaint filed against All Financial in Maryland alleges that the company used deceptive advertising from November 2011 to December 2012. The bureau said the reverse lender sent mailings to nearly 200,000 people that had an eagle resembling the Great Seal of the United States. Flagship Financial, based in Utah, was accused of sending out more than one million mailers claiming it was ‘approved’ by the U.S. Department of Housing and Urban Development, as well as ‘tens of thousands of mailers’ resembling government notices. Separately, California-based American Preferred Lending was accused of sending more than 100,000 mailings with a logo claiming it was a Federal Housing Administration lending institution when it really just offered FHA-backed loans.”

The CFPB ordered Flagship “to pay a civil penalty of $225,000, while American Preferred will pay $85,000.” [Rachel Witkowski, “CFPB Hits Three Lenders as Part of False Ad ‘Sweep’,” National Mortgage News, 02/12/15]

• The court ordered All Financial to pay a $13,000 civil penalty. [CFPB v. All Financial Services, case no. 1:15-cv-00420-BPG, filed 10/21/15]