Uncertainty Over 38 “Open” or “Active” Enforcement Actions Including 3 Cases on Behalf of New York Consumers
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 New York, the bureau is taking action against predatory and threatening debt collection practices, including a company that scammed 9/11 first responders out of court awarded settlements.
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.
“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 New York consumers could be denied the settlements they are owed. Thanks to Mulvaney, the fate of New Yorkers 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.”
PENDING CFPB ENFORCEMENT ACTIONS IN NEW YORK
The below represent “open” or “active” CFPB enforcement actions in New York. 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
- NEW YORK and NEW JERSEY: The CFPB has sued RD Legal Funding, among others, for “scamming” 9/11 first responders and NFL players out of court awarded settlements. [“CFPB, Attorney General-NY v. RD Legal Funding, LLC, RD Legal Finance, LLC, and RD Legal Funding Partners, LP, and Roni Dersovitz,” CFPB Action Tracker, accessed 11/28/17]
- NEW YORK: The CFPB has sued Northern Resolution Group, LLC, among others, for taking “in ‘tens of millions of dollars’ a year by harassing, threatening and deceiving consumers” and collecting debts that “consumers did not owe.” [“CFPB v. Northern Resolution Group, LLC, Douglas MacKinnon, Mark Gray, Enhanced Acquisitions, LLC, and Delray Capital, LLC,” 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]