Credit Card Add-On Products

CFPB Enforcement Actions

Enforcement Actions(as of October 1, 2014)

Credit card add-on products:

Capital One-$25.0 million civil penalty; $140.0 million restitution

Discover-$7.0 million civil penalty; $200.0 million restitution

JP Morgan Chase- $20.0 million civil penalty; $309.0 million restitution

American Express Centurion Bank-$3.6 million civil penalty; $40.9 million restitution

American Express Bank-$2.0 million civil penalty; $18.6 million restitution

American Express Travel-$4.0 million civil penalty

Bank of America-$20.0 million civil penalty; $727 million restititution

U.S. Bank-$5 million civil penalty; $48 million restitution

Deceptive credit card marketing and other credit card-related practices:

American Express Centurion Bank-$3.9 million civil penalty; $75.0 million restitution

American Express Bank-$1.2 million civil penalty; $10.0 million restitution

American Express Travel-$9.0 million civil penalty

GE Capital (charges also included discriminatory practices)-$56 million refund to consumers for add-on products; $169 million redress to consumers who did not receive debt relief offers; $3.5 million civil penalty for deceptive marketing (no penalty for discrimination due to self-reporting and self-remediation)

Credit card deferred interest:

GE Capital Retail Bank/Care Credit-$34.1 million restitution

RESPA (reinsurance):

United Guaranty- $4.5 million civil penalty

Genworth-$4.5 million civil penalty

Mortgage Guaranty Insurance Corp-$2.65 million civil penalty

Radian Guaranty-$3.75 million civil penalty

PHH Corporation (pending)

RESPA (referral fees/kickbacks):

Fidelity Mortgage Corp.-$54,000 civil penalty; $27,076 disgorgement

Republic Mortgage Insurance-$100,000 civil penalty

Paul Taylor-$118,194 disgorgement

First Alliance-$83,000 civil penalty

Borders & Borders LLC (pending-docket under seal)

Stonebridge Title-$300,000 civil penalty

JRHBW Realty, Inc-$500,000 civil penalty

Lighthouse Title-$200,000 civil penalty

Mortgage Loan Originator Compensation:

Castle & Cooke Mortgage-$4,000 civil penalty; $9.228 million restitution

Interstate Land Sales Full Disclosure Act:

3D Resorts-Bluegrass (pending)

Debt relief:

Global Client Solutions (payment processor)-$6.099 million restitution; $1million civil penalty

Meracord (payment processor)-$1.376 millioncivil penalty

Payday Loan Debt Solution-$5,000 civil penalty; $100,000 restitution

American Debt Settlement Solutions-$15,000 civil penalty

National Legal Help Center-$1.05 million civil penalty; $2.057 million restitution

Chance Gordon- judgment entered ordering $11.403 million restitution and disgorgement (case on appeal)

Mission Settlement (pending-stayed pending conclusion of federal criminal prosecution of defendants)

Morgan Drexen (pending)

HMDA reporting:

Mortgage Master-$425,000 civil penalty

Washington Federal-$34,000 civil penalty

Auto installment loans/ military pay allotments:

Dealers’ Financial Services-$3.3 million restitution

U.S. National Bank -$3.2 million restitution

Auto finance/credit reporting:

First Investors Financial Services Group-$2.75 million civil penalty

Student loans:

ITT Educational Services (pending)

Corinthian College (pending)

Payday loans:

CashCall (pending)

Fair lending (mortgage):

National City Bank-$35.0 million restitution

Fair lending (auto):

Ally Financial/Ally Bank-$18.0 million civil penalty; $80.0 million restitution

Debt collection (robo-signing)/Military Loan Act:

Cash America (payday lender)-$5.0 million civil penalty; $14.0 million restitution

Debt collection (collection lawsuits):

Frederick J. Hanna & Associates, P.C. et al. - pending

Debt collection (collection calls):

Ace Cash Express (payday lender)-$5 million restitution; $5 million civil penalty

Mortgage Servicing:

Ocwen Financial-$125.0 million restitution; $2 billion principal reduction

Flagstar Bank-$ 10.0 million civil penalty; $27.5 million restitution and other relief

SunTrust-$40.0 million restitution; $500.00 million principal reduction; $10.0 million civil penalty

Mortgage advertising:

Amerisave Mortgage Corp.-$14.8 million refunds; $6 million civil penalty ($4.5 million from company; $1.5 million from individual principal)

Financing of retail sales made to servicemembers:

Colfax Capital Corp.-$92 million debt relief; $1 million civil penalty

USA Discounters-$350,000 refunds; $500,000 civil penalty

Deposit Account Advertising:

M&T Bank-$2.9 million refunds; $200,000 civil penalty

For more information, please contact:

John L. Culhane, Jr.

Partner

Consumer Financial Services Group

215.864.8535 |

Christopher J. Willis

Partner

Consumer Financial Services Group

678.420.9436 |

About Ballard Spahr's Consumer Financial Services Group

Ballard Spahr, a national firm with more than 500 lawyers in 14 offices in the United States, provides legal services in the litigation, business and finance, real estate, intellectual property, and public finance areas. The firm's Consumer Financial Services Group is nationally recognized for its guidance in structuring and documenting new consumer financial services products, its experience with the full range of federal and state consumer credit laws, and its skill in litigation defense and avoidance. The Group already has vast experience involving regulatory, supervisory, and enforcement matters with the Consumer Financial Protection Bureau and has assisted numerous clients in preparing for their first CFPB exams. Visit the Group's ABA-award-winning blog at