Consumers on Ice: Dozens of CFPB Enforcement Actions in Jeopardy During Trump/Mulvaney “Coup”

Uncertainty Over 38 “Open” or “Active” Enforcement Actions Including Case Involving Scammed 9/11 First Responders


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.

According to an Allied Progress analysis, there are currently 38 “open” or “active” CFPB enforcement actions 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 “open” and “active” enforcement actions could impact consumers both nationally and on the state level in Arizona, Arkansas, California, Colorado, Georgia, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Mississippi, Missouri, New Mexico, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, and Virginia.

While the courts determine the legality of Trump’s CFPB coup by appointing Mick Mulvaney as ‘acting director,’ tremendous damage is already being done and it is the very people he promised to help, people who can least afford it, who will be hardest hit,” said Karl Frisch, executive director of the consumer watchdog organization Allied Progress.

He continued, “Mulvaney 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 earn him pats on the back from Trump and his friends on Wall Street, but it is consumers that he is really putting 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.

38 Pending CFPB Enforcement Actions

The below represent “open” or “active” CFPB enforcement actions. 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 track on Allied Progress’ CFPB Action Tracker: CFPBactiontracker.com

  • OHIO: The CFPB has sued Weltman, Weinberg & Reis Co., L.P.A., a debt collection law firm, for failing to verify that people actually owed them money before demanding consumers pay them. [CFPB v. Weltman, Weinberg & Reis Co., L.P.A., CFPB Action Tracker, accessed 11/28/17]
  • NATIONWIDE: The CFPB has sued Navient Corporation, a Delaware based company and a student loan servicer, for failing to “apply borrower repayments accurately.” Navient even failed disabled veterans by inaccurately reporting that they had defaulted on their loans when the veterans were eligible for loan forgiveness under federal programs. [“CFPB v. Navient Corporation, Navient Solutions, Inc. and Pioneer Credit Recovery, Inc..,” CFPB Action Tracker, accessed 11/28/17]
  • MASSACHUSETTS: The CFPB has fined Santander Bank for charging “illegal overdraft fees” when Santander’s telemarketers enrolled customers in an overdraft program “without their consent.” [“CFPB – Santander Bank,” CFPB Action Tracker, accessed 11/28/17]
  • MISSISSIPPI: The CFPB has sued All American Check Cashing Inc. for instructing their employees to not disclose fees they were charging to their customers and for overcharging customers. [“CFPB v. All American Check Cashing,” CFPB Action Tracker, accessed 11/28/17]
  • NATIONWIDE: The CFPB has sued T3 Leads, a California based company and “a consumer information aggregator,” in addition to its “chief officers” Grigor and Marina Demirchyan, for allegedly failing to “properly vet lead purchasers.” [“CFPB v. T3Leads,” CFPB Action Tracker, accessed 11/28/17]
  • MASSACHUSETTS: The CFPB has fined Collecto Inc. for collecting cell phone debts consumers had already paid as well as debts that they could not verify that consumers owed. [“CFPB v. EOS-CCA,” CFPB Action Tracker, accessed 11/28/17]
  • NATIONWIDE: The CFPB has taken action against Integrity Advance, a Delaware based company and an online payday lender, for deceiving customers about the cost of loans and making automatic withdrawals from customer accounts, even after customers had “revoked authorization for automatic withdrawals.” [“CFPB – Integrity Advance, LLC,” CFPB Action Tracker, accessed 11/28/17]
  • CALIFORNIA: The CFPB has sued Global Financial Support, Inc., a company that helped students find and obtain financial aid, for tricking “thousands of students and their families” into paying for financial aid research that they never delivered. [“CFPB v. Global Financial Support, Inc.,” CFPB Action Tracker, accessed 11/28/17]
  • NATIONWIDE: The CFPB has sued Pension Funding LLC and Pension Income LLC, both California based companies, for deceiving customers “about the high rates of their loans” and “tricked consumers into borrowing against their pensions.” [“CFPB v. Pension-Funding-LLC and-Pension Income LLC,” CFPB Action Tracker, accessed 11/28/17]
  • NATIONWIDE: The CFPB has sued World Law Group, a law firm with offices around the World, for charging “illegal upfront fees” when promising consumers legal help to get out of debt. [“CFPB v. World Law Group,” CFPB Action Tracker, accessed 11/28/17]
  • NATIONWIDE: The CFPB has sued NDG Financial, a Canada based payday lender, among others, for illegally collecting loans and fees that “consumers had no obligation to repay” and even threatening borrowers with “lawsuits or prison.” [“CFPB – NDG Financial,” CFPB Action Tracker, accessed 11/28/17]
  • NATIONWIDE: The CFPB has sued Green Tree Servicing, a Pennsylvania based mortgage servicing firm, for “illegal loan servicing and debt collection practices,” including harassing telephone calls and failing to honor modification agreements between consumers and previous loan processors. [“FTC and CFPB v. Green Tree Servicing, LLC,” CFPB Action Tracker, accessed 11/28/17]
  • MISSOURI: The CFPB has sued payday lender Hydra Group for buying information from online lead generators to “access consumers’ checking accounts to illegally deposit payday loans and withdraw fees without consent.” [“CFPB v. Hydra Group,” CFPB Action Tracker, accessed 11/28/17]
  • NATIONWIDE: The CFPB has sued California-based Clausen & Cobb Management Company for falsely promising distressed borrowers who paid to “lower an interest rate or stop a foreclosure,” without following through. [“CFPB v. Siringoringo, Clausen-&-Cobb Management-Co.,” CFPB Action Tracker, accessed 11/28/17]
  • NATIONWIDE: The CFPB has sued the Illinois-based Mortgage Law Group, among others, for charging “illegal advance fees for services that falsely promised to prevent foreclosures or renegotiate troubled mortgages.” [“CFPB v. The-Mortgage Law-Group, LLP,” CFPB Action Tracker, accessed 11/28/17]
  • GEORGIA: The CFPB has sued Frederick J. Hanna and Associates for running a scam lawsuit machine that churned out “thousands of poorly researched lawsuits aimed at intimidating victims into paying debts they sometimes already paid or don’t legally owe.”  [“CFPB v. Frederick-J. Hanna-and Associates,” CFPB Action Tracker, accessed 11/28/17]
  • NATIONWIDE: The CFPB has sued for-profit college chain ITT Educational Services, an Indiana based company, for “predatory lending practices, pushing prospective students into costly loans and misleading them about future job prospects.” [“CFPB v. ITT Educational Services,” CFPB Action Tracker, accessed 11/28/17]
  • NEW JERSEY and PENNSYLVANIA: The CFPB has sued PHH Corporation, a mortgage lending company, for “collecting kickbacks from mortgage insurers as part of a scheme dating back to 1995.” [“CFPB – PHH Corporation,” CFPB Action Tracker, accessed 11/28/17]
  • ARIZONA and ARKANSAS and COLORADO and INDIANA and MASSACHUSETTS and NEW HAMPSHIRE and NEW YORK and NORTH CAROLINA: The CFPB has sued CashCall and its subsidiaries for “engaging in ‘unfair, deceptive, and abusive practices,'” including violating “federal law by seeking to collect on loans that were completely void or partially nullified.” [“CFPB v. CashCall, Inc., WS Funding, LLC, Delbert Services Corporation, J. Paul Reddam,” CFPB Action Tracker, accessed 11/28/17]

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