Consumers in DC, MD and VA Could Lose Millions as Trump Appointee Jeopardizes Consumer Bureau Actions

WASHINGTON, D.C. – While courts consider the fate of Mick Mulvaney’s attempted “illegal,” “lawless” “coup” at the Consumer Financial Protection Bureau (CFPB), his directive that important work be frozen could have a disastrous impact on consumers awaiting relief after being screwed over by big banks, credit card companies, debt collections, payday lenders, and other financial predators. In the District-Maryland-Virginia (DMV) area, the Bureau is suing a company for persuading lead poisoning victims, many of whom were mentally disabled, to sell “large payouts for a fraction of their value under false pretenses.”

According to an Allied Progress analysis, there are currently 38 “open” or “active” CFPB enforcement actions nationally covering a broad range of consumer issues from illegal foreclosures and debt collection practices to deceiving payday loan borrowers about the cost of loans and charging students for financial aid that was never delivered. In one case, the CFPB has sued a company for scamming 9/11 first responders out of court awarded settlements.

“The Consumer Financial Protection Bureau has returned millions to consumers who have been taken advantage of by big banks and predatory financial institutions. But now that Trump appointee Mick Mulvaney has taken over, these bad actors may get a pass and DMV consumers could be denied the settlements they are owed. Thanks to Mulvaney, the fate of DMV consumers wronged by scammers, payday lenders, and other financial bad actors is now in limbo,” said Karl Frisch, executive director of the consumer watchdog organization Allied Progress.

He continued, “Breaking every promise Trump made to voters, his administration has wasted no time going to bat for big banks, debt collectors, payday lenders, and other financial predators. Putting a ‘freeze’ on the important work of the CFPB may be popular with Wall Street, but it is consumers that have been put on ice. They are the ones who will pay the price for his callous abdication of responsibility.”

To speak with Karl Frisch about Mulvaney and the CFPB, please contact Annette McDermott at 202-697-4804 or annette@alliedprogress.org.

PENDING CFPB ENFORCEMENT ACTIONS IN MARYLAND AND VIRGINIA

The below represent “open” or “active” CFPB enforcement actions in Maryland and Virginia. They are sorted by date with those started most recently appearing first. The designations come from the CFPB’s enforcement actions website. Each action is also tracked on Allied Progress’ CFPB Action Tracker: CFPBactiontracker.com

• VIRGINIA: The CFPB has sued Fredericksburg Gold & Pawn and Spotsylvania Gold & Pawn Inc. for advertising loans with “deceptively low [interest rates].” [“CFPB v. A To Z Pawn, Inc., Pawn U.S.A., Inc., Fredericksburg Gold & Pawn, Inc., and Spotsylvania Gold & Pawn, Inc. (four separate legal filings),” CFPB Action Tracker, accessed 11/28/17]

• MARYLAND: The CFPB has sued Access Funding, LLC, among others, for persuading lead poisoning victims, many of whom were mentally disabled, to sell “large payouts for a fraction of their value under false pretenses.” [“CFPB v. Access Funding, LLC, Access Holding, LLC, Reliance Funding, LLC, Lee Jundanian, Raffi Boghosian, Michael Borkowski, and Charles Smith,” CFPB Action Tracker, accessed 11/28/17]

• MARYLAND: The CFPB has sued Genuine Title, a mortgage company, for a “mortgage kickback scheme with banks such as Wells Fargo and JPMorgan Chase” where Genuine Title “funneled cash payments” to the loan officers through LLCs the loan officers created for themselves. [“Attorney General-MD, CFPB v. Genuine Title, LLC, Brandon Glickstein Gary Klopp et al.,” CFPB Action Tracker, accessed 11/28/17]

>> Click Here for a Complete List of Pending Enforcement Actions <<

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