Category Archives: Unfair & Deceptive Acts & Practices (UDAP), including Discrimination

Are deferred interest plans abusive?

USA Today’s Daniel de Vise has an interesting article, 62% of Americans say this zero-interest payment plan should be against the law, about a form of consumer lending called deferred interest plans. Here’s an excerpt: A popular payment plan offered by America’s big-box retailers promises no interest on your purchase if you pay it off in, […]

FTC issues rule regarding scams in vehicle shopping

The Federal Trade Commission has finalized a new rule to fight two common types of illegal tactics consumers face when buying a car: bait-and-switch tactics and hidden junk fees. The FTC expects the rule to save consumers nationwide more than $3.4 billion and an estimated 72 million hours each year shopping for vehicles. The FTC’s […]

FTC returns more than $3 million to businesses that paid for HomeAdvisor memberships

The Federal Trade Commission is sending more than $3 million in refunds to businesses that paid for memberships to HomeAdvisor, Inc., a company affiliated with Angi (formerly known as Angie’s List). The agency is also sending claim forms to businesses that are eligible for additional refunds. The refunds stem from FTC allegations that HomeAdvisor used […]

Court approves CFPB settlement re training provider’s abusive loan practices

In July, the CFPB and 11 states filed an adversary complaint in bankruptcy court against Prehired — a company that operated a private, for-profit vocational training program for software sales representatives. Promising entry-level wages of over $100,000, Prehired charged $30,000 for its program and encouraged students to enter into income share loans. The CFPB alleged […]

CFPB orders Citi to pay $25.9 Million for discriminating against Armenian Americans

The Consumer Financial Protection Bureau announced today that it has ordered Citi to pay $25.9 million in fines and consumer redress for intentionally and illegally discriminating against credit card applicants the bank identified as Armenian American. The CFPB explains: “From 2015 through 2021, Citi singled out for discrimination applicants for certain credit card products, based […]

CFPB appeals Chamber of Commerce district court ruling that discrimination is not unfair

More about the lower court opinion here. Given the Fifth Circuit’s politics, I’m not sure things will fare any better there, but hope is the thing with feathers. Even the Fifth Circuit must reach the correct decision sometimes.

Dept of Education fines university $37M for misleading students on costs

The Department of Education has levied a $37.7 million fine against Grand Canyon University for allegedly misleading more than 7,500 former and current students about the cost of its doctoral programs. The Washington Post reports that, “Grand Canyon, which enrolls more than 118,000 students mostly online, disputes the charges and said it ‘will take all […]

Busy morning at the Federal Trade Commission

The Federal Trade Commission issued 3 press releases this morning: FTC Case Leads to Permanent Ban Against Merchant Cash Advance Owner for Deceiving Small Businesses, Seizing Personal and Business Assets FTC Releases Reports on Cigarette and Smokeless Tobacco Sales and Marketing Expenditures for 2022 FTC Sends Nearly $100 Million in Refunds to Vonage Consumers Who […]

Consumers report losing $2.7 billion to social media scams since 2021

New data from the Federal Trade Commission shows that scams originating on social media have accounted for $2.7 billion in reported losses since 2021, more than any other contact method. The FTC says that the most frequently reported scams on social media are related to online shopping, with 44 percent of reports pointing to fraud […]