FTC provides 2015 enforcement report to CFPB

Ballard Spahr LLP
Contact

The Federal Trade Commission has provided its annual report to the CFPB covering the FTC’s enforcement activities in 2015 related to compliance with Regulation Z (Truth in Lending), Regulation M (Consumer Leasing), and Regulation E (Electronic Fund Transfers).  Under Dodd-Frank, the FTC retained its authority to enforce these regulations with respect to entities within its jurisdiction.  The FTC and CFPB coordinate their enforcement and related activities pursuant to a MOU entered into in 2012 and reauthorized in 2015.

Reg Z/TILA.  The FTC’s enforcement activities included one federal court action involving alleged deceptive advertising by an auto dealer, five consent orders in administrative actions settling deceptive advertising claims against auto dealers, and two consent orders in administrative actions settling deceptive advertising claims by auto title lenders (representing the FTC’s first actions against such lenders).  Other TILA-related enforcement activities included a stipulated order in a federal court action against two online payday lenders settling claims that the lenders gave inaccurate TILA disclosures to borrowers and a final judgment in one federal court action and continued litigation in two other federal court actions against companies providing mortgage assistance relief services (including alleged forensic audit scams in which the providers offered, for a fee, to review or audit mortgage documents of distressed homeowners to identify legal violations).

Reg M/Consumer Leasing.  The FTC’s enforcement actions included proposed or final consent orders in administrative actions against three auto dealers to settle deceptive advertising claims.

Reg E/EFTA.  The FTC’s enforcement actions included three federal court actions involving negative option plans in which the defendants are alleged to have debited consumers’ accounts without obtaining proper written authorization and a consent order in a federal court action against two online payday lenders settling claims that the lenders conditioned the extension of credit on preauthorized transfers.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ballard Spahr LLP | Attorney Advertising

Written by:

Ballard Spahr LLP
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

Ballard Spahr LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide