FTC Shares 2021 Enforcement Report with CFPB
On June 3, the FTC announced that it was submitting its 2021 Annual Financial Law Enforcement Report to the CFPB. The report covers the FTC’s enforcement activities regarding the Truth in Lending Act (TILA), the Consumer Leasing Act (CLA), and the Electronic Fund Transfer Act (EFTA). Highlights of law enforcement issues covered in the report include, among others:
- Car credit and leasing. The report discussed the FTC’s July 2021 settlement with car dealership owners in Arizona and New Mexico (collectively, the “Defendants”) resolving allegations that the Defendants misrepresented consumer information about claims for funding and misrepresented financial terms in advertisements in violation of TILA and CLA (covered by InfoBytes here).
- payday loan. The report highlighted the FTC’s settlement against a payday loan company for allegedly overcharging consumers millions of dollars, misleading them about the terms of their loans and failing to make required loan disclosures. According to the report, the owners and operators of the settlement entities are prohibited from extending loans or extending credits, almost all debts held by the company will be deemed paid in full and the companies concerned are being liquidated. , the proceeds to be used to provide redress to consumers harmed by the business.
- Credit Repair and Debt Relief. The report discussed the FTC settlement with operators of a student loan debt relief program, who were accused of falsely promising consumers that the company could reduce or eliminate student loan balances. , illegally charging up-front fees for credit repair services and signing up consumers for high loans. interest loans to pay fees without making required loan disclosures in violation of TILA. The order prohibits the defendants from providing debt relief services and collecting any other payment from consumers who purchased the services, and requires the defendants to return the money to be used to repay consumers.
In addition, the report discussed the FTC’s research and policy efforts and highlighted the work of the FTC’s Military Task Force on military consumer protection issues.