Massachusetts Attorney General Secures Court Order Against Alleged Phantom Debt Collection Operation 

The Massachusetts Attorney General’s Office has obtained a preliminary injunction against a group of companies accused of operating a phantom debt collection scheme that allegedly used deception and intimidation to collect money from consumers.  A Suffolk Superior Court judge issued the order against Assessment Resolution, LLC, East Coast Financial, and the companies’ owners and operators. According to the state’s lawsuit, the defendants engaged in debt collection activities involving debts that either did not exist or that […]

Shadow AI Risks Come Into Focus After Community Bank Data Exposure

A Pennsylvania community bank recently disclosed a data exposure incident after an employee entered nonpublic customer information into an unauthorized generative artificial intelligence (AI) application. The information included highly sensitive personal data, such as customer names, Social Security numbers, and dates of birth.  According to reports, the bank was able to contact the application vendor and successfully remove the information before it was incorporated into the vendor’s AI training models. The bank subsequently filed a voluntary […]

New York DFS Finalizes Consent Order Against Santander Consumer USA Over Auto Loan Fee Practices 

The New York State Department of Financial Services (DFS) has finalized a consent order with Santander Consumer USA Inc. following an investigation into the company’s automobile loan servicing practices. According to a DFS news release, the agency found that Santander charged certain borrowers recurring fees related to loan payment extensions that were not fully disclosed in customer agreements.  As part of the settlement, Santander will pay a $400,000 civil penalty to the State of New York […]

CFPB Announces Headquarters Relocation and Return-to-Office Plan Amid Ongoing Workforce Reduction Disputes 

The Consumer Financial Protection Bureau (CFPB) has announced plans to relocate its Washington, D.C., headquarters to a smaller office building in the city’s southwest quadrant while also implementing a phased return-to-office plan for employees.  According to a report from Bloomberg Law, preparations for the new office space began on June 1, with operations staff tasked with readying the facility for employee occupancy.  Under the agency’s return-to-office directive, approximately 650 employees who live […]

Colorado Supreme Court Clarifies Documentation Requirements for Debt Buyers Filing Collection Lawsuits

The Colorado Supreme Court has issued a unanimous decision clarifying the documentation requirements debt buyers must meet when filing collection lawsuits under the Colorado Fair Debt Collection Practices Act (CFDCPA).  In Wright v. Portfolio Recovery Associates, LLC, the court held that a debt buyer must attach an assignment or other written documentation that specifically establishes ownership of the consumer’s debt when initiating a collection action. The court also determined that an affidavit cannot be used to replace or remedy missing chain-of-title […]

New York DFS Issues Cybersecurity Guidance for Financial Institutions Amid Elevated Threat Environment 

The New York State Department of Financial Services (DFS) recently released new industry guidance outlining operational measures financial institutions may consider implementing during periods of heightened cybersecurity risk.  The guidance highlights growing concerns surrounding increasingly advanced artificial intelligence tools capable of sophisticated cyber operations. According to the DFS, the emergence of highly advanced large-scale AI systems — often referred to as “frontier models” — should prompt organizations to closely evaluate their cybersecurity […]

Commercial Chapter 11 Bankruptcy Filings Rise Sharply in April 2026

Commercial chapter 11 bankruptcy filings increased 42% in April 2026 compared to the same month in 2025, according to new data released by Epiq AACER and the American Bankruptcy Institute.  The report showed 644 commercial chapter 11 filings in April 2026, up from 454 filings recorded in April 2025. Overall commercial bankruptcy filings also rose 21% year over year, reaching 3,060 filings. Small business filings increased 46% during the same period. […]

Imposter Scams Continue to Surge as Consumer Losses Reach Record Highs 

Imposter scams remain the most widespread form of fraud in the United States, holding the top spot for consumer complaints for the ninth consecutive year. New data released by the Federal Trade Commission highlights how scammers are evolving their tactics — and how the financial impact on consumers continues to grow at an alarming pace.  According to the FTC, consumers reported losing $3.5 billion to imposter scams in 2025 alone, contributing to overall fraud losses of $15.9 billion. That marks […]

California Taps Former CFPB Director Rohit Chopra to Lead New Consumer Protection Agency

California Gov. Gavin Newsom has appointed former Consumer Financial Protection Bureau Director Rohit Chopra to lead the state’s newly created consumer protection agency.  The new agency, known as California’s Business and Consumer Services Agency (BCSA), will oversee a wide range of regulatory and enforcement bodies, including the Department of Financial Protection and Innovation (DFPI), which supervises debt collectors licensed in the state. The BCSA will also oversee several other California […]

Consumer Litigation Activity Surges in March 2026 as FCRA Filings and CFPB Complaints Continue Rising 

Consumer litigation activity shifted again in March 2026, reversing several of the trends seen the previous month and continuing a broader rise in filings and complaints across multiple areas of consumer finance law.  According to the latest report from WebRecon, litigation tied to the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA) both posted significant month-over-month increases in March. FDCPA filings rose 17.3%, while FCRA lawsuits increased 18.9% […]