States

The New York Attorney General accused Citibank of violating the Electronic Fund Transfer Act by failing to implement adequate security measures to protect consumers from fraud and allegedly denying reimbursement for unauthorized wire transfers. Banking advocates filed an amicus brief after the District Court for the Southern District of New York granted in part and denied in part the bank’s motion to dismiss the charges. Read on »

A Massachusetts state regulator filed suit against a Boston-based home equity investment company for violating consumer protection laws designed to safeguard consumers against illegal and predatory mortgage practices. Read on »

The California Department of Financial Protection and Innovation reached a settlement with the perpetrators of an illegal cryptocurrency investment platform and is urging residents to apply for refunds. Harmed consumers are urged to submit claims for refunds by May 22. Read on »

The Fourth Circuit Court of Appeals in West Virginia dismissed the majority of a $10.6 million judgment against Rocket Mortgage and its affiliate, Amrock LLC. The case involved claims questioning the companies’ handling of certain home value estimates included in refinance applications. Read on »

Following an investigation into a June 2024 ransomware attack against Patelco Credit Union, California’s Department of Financial Protection and Innovation issued a consent order citing cybersecurity deficiencies. Read on »

Predatory lending is now a criminal offense punishable with jail time in California following the enactment of California Assembly Bill 3108 in September. The legislation expanded the legal definition of “mortgage fraud” to include any mortgage broker or person who originates a loan with the intent to defraud someone. Read on »

Republic First Bank, a financial institution closed by regulators earlier this year, was charged with unlawful mortgage redlining and discrimination by the New Jersey Office of the Attorney General in partnership with the state’s Division on Civil Rights. Read on »

Federal and state regulators issued an enforcement action citing consumer compliance deficiencies with UniBank and its parent company, U&I Financial Corp., following a lawsuit revealing the bank’s involvement in a Ponzi scheme. Read on »

Two Minnesota-based debt settlement companies agreed to cease operations in the state after regulators determined they were collecting illegal fees from customers and misrepresenting service offerings. Minnesota Attorney General Keith Ellison announced a settlement between the companies and his office, requiring the companies to provide full refunds to consumers charged illegal upfront fees. Read on »

Noting the unique risks posed by certain artificial intelligence solutions, the New York State Department of Financial Services issued guidance urging financial services organizations to evaluate and address these types of issues when developing cybersecurity strategies. Read on »