PLA today updates the UDAAP database with a series of enforcement actions from the CFPB and, notably, the prudential regulators.

The majority of enforcement actions involving allegedly unfair, deceptive, and abusive acts and practices (UDAAP) over the last six months have been filed by the Consumer Financial Protection Bureau (CFPB) using its UDAAP powers under the Dodd-Frank Act. But this latest round of enforcement activity from the Federal Deposit Insurance Corporation (FDIC) and the Board of Governors of the Federal Reserve System (Fed) is a reminder for smaller financial institutions not subject to the CFPB’s enforcement authority that the prudential regulators are still willing and able to use their enforcement powers to address unfair and deceptive practices under Section 5 of the Federal Trade Commission Act. The continued application of unfair, deceptive, and abusive principles adds to our understanding of this malleable doctrine of law.

Agency Date of Action Party Documents Activity Product/ Service Comments
CFPB  12/17/15 Interstate Auto Group, Inc. DBA CarHop Consent Order; Press Release Credit reporting inaccuracies Auto loans
CFPB  12/17/15 Lead Publisher Consent Order; Press Release Reckless support of UDAAP violation Payday loan lead sales
CFPB  12/17/15 D and D Marketing, Inc. DBA T3Leads Complaint; Press Release Deceptive marketing Payday loan lead sales Abusive
CFPB  12/16/15 EZCorp, Inc. Consent Order; Press Release Debt collection Debt collection \ payday loans
CFPB 12/8/2015 Collecto, Inc. Complaint; Press Release; Stipulated Final Judgment and Order Debt collection Cell phone debt
CFPB 11/18/15 Integrity Advance, LLC Brief in Support  of Motion to Dismiss; Notice of Charges; Press Release Deceptive marketing Payday loans Admin proceeding
FDIC 12/23/15 The Bancorp Bank Consent Order; Press Release Error resolution, account termination, and fees Prepaid card programs
FDIC 12/23/15 WEX Bank Consent Order Deceptive marketing Disbursement of student loan proceeds and checking accounts See separate FDIC and Fed actions against Higher One
FDIC 09/08/15 Comenity Bank, Comenity Capital Bank Consent Order 1; Consent Order 2; Press Release Deceptive marketing Credit card debt protection
Fed 12/23/15 Higher One, Inc., as an institution-affiliated party of Customers Bank and a former institution -affiliated party of Cole Taylor Bank Consent Order Deceptive marketing Disbursement of student loan proceeds and checking accounts See separate FDIC actions against Higher One and WEX Bank