The Federal Trade Commission has charged a debt relief operation with falsely representing to financially distressed homeowners and student loan borrowers that it would help get their mortgages and student loans modified. At the FTC’s request, a federal court has temporarily halted the operation. The agency seeks to permanently stop the alleged illegal practices and […]
Author Archives: Allison Zieve
The Consumer Financial Protection Bureau yesterday took two separate actions against Citibank for illegal debt sales and debt collection practices. In the first action, the CFPB ordered Citibank to provide nearly $5 million in consumer relief and pay a $3 million penalty for selling credit card debt with inflated interest rates and for failing to […]
Here are some recent announcements from the Department of Justice's Consumer Protection Branch: February 12, 2016 District Court Enters Permanent Injunction Against Maine-Based Seafood Company and Its Owner to Prevent Distribution of Adulterated Products February 4, 2016 Father and Son Found Guilty in Manhattan Federal Court in Connection with Multimillion-Dollar Vending Machine “Business Opportunity” Scheme […]
Bloomberg has this story on Zales' parent Signet Jewelers, which some analysts say "is pushing the limits of credit and accounting so far that it’s starting to look less like a jewelry business and more like a finance company."
The Wall Street Journal reports: The Consumer Financial Protection Bureau, preparing to roll out rulesaimed at reining in high-interest payday loans, is jawboning banks and credit unions to provide better alternatives for borrowers in need of small, short-term loans. Richard Cordray, director of the watchdog agency, said it is discussing ways to make it easier for […]
The Washington Post reports: Congress is considering a freeze on the airline industry’s shrinking coach seats, an unprecedented move that could lead to a more comfortable and humane flying experience. A proposed amendment to the Federal Aviation Administration (FAA) Reauthorization Bill would direct the federal government to set minimum seat-size standards for the first time, […]
BBC News reports: HSBC has reached a $470m [] settlement with the US government and states related to dubious mortgage lending and foreclosure practices that contributed to the financial crisis. The agreement includes a $100m fine and $370m in consumer relief to borrowers. Investigations began in 2010 after HSBC was found to be signing off […]
Senator Patrick Leahy (VT) and Senator Al Franken (MN) introduced a bill Thursday that would strictly limit the companies' ability to impose arbitration clauses on consumers and workers. The Restoring Statutory Rights Act would prevent civil rights cases, employment disputes and other crucial lawsuits from being forced into arbitration. A New York Times article on […]
The Washington Post reports today that the food industry is pressuring Congress to block vermont' GMO-labeling law before it goes into effect in July. "The food industry wants Congress to pre-empt Vermont’s law and bar mandatory labeling of genetically modified foods before it goes into effect. They argue that GMOs, or genetically modified organisms, are […]
The Washington Post reports on two new airbag recalls: Automakers to recall 5M vehicles for another air bag problem Another problem has developed with automotive air bags, this one resulting in recalls of up to 5 million vehicles worldwide. Continental Automotive Systems says in documents filed with the U.S. government that moisture can get inside […]