On September 6, 2019, the Consumer Financial Protection Bureau (CFPB) announced that it had filed a lawsuit in the U.S. District Court for the Central District of California against a Texas-based foreclosure relief services company, as well as the company’s CEO and auditor. The CFPB alleges that the defendants violated the Consumer Financial Protection Act (CFPA) and Regulation O by making deceptive and unsubstantiated representations about the company’s ability to help consumers obtain loan modifications or avoid foreclosure. In addition, defendants allegedly charged consumers up-front fees before such services were actually provided.
The CFPB and the auditor agreed to a proposed stipulated judgment, which, if entered by the court, would result in the auditor paying a $493,000 civil money penalty. All but $5,000 of that penalty would be suspended.