In February 2015, the CFPB ordered New Day Financial to pay $2 million to CFPB’s Civil Penalty Fund for allegedly engaging in “deceptive advertising” and paying “illegal kickbacks” to a veterans’ organization.

• The CFPB issued a consent order to New Day Financial, LLC. [CFPB file no. 2015-CFPB-0004 (New Day Financial, LLC.), filed 02/10/15]

• The CFPB ordered New Day Financial to pay $2 million to CFPB’s Civil Penalty Fund for allegedly engaging in “deceptive advertising” and paying “illegal kickbacks.” The CFPB “alleged that New Day agreed to pay ‘lead generation’ fees to a veterans’ organization and a broker that facilitated the arrangement, in addition to a monthly licensing fee to the broker. In exchange, the veterans’ organization named New Day its exclusive lender and referred veterans to New Day. New Day also allegedly advertised its exclusive endorsement to the members of the veteran’s organization without disclosing the financial relationship between them.” [Bernard Nash and Lori E. Kalani, “United States: State AGs in the News _ February 12, 2015,” Mondaq Business Briefing, 02/18/15]