In finding against the Defendants, the Court considered whether a “reasonable consumer” would be misled by the defendant mortgage loan servicer’s tactics and concluded that he or she would likely be misled. The Court concluded that consumers would be likely to misunderstand the promises that were made regarding savings to be had and would be misled and deceived regarding the relationship between the defendants and the consumer’s lenders.
The case is notable – not only because of the $7.9 million dollar recovery – but because it demonstrates that the CFPB is willing to take cases to trial in order to fulfill its mission, which is to “make consumer financial markets work for consumers, responsible providers, and the economy as a whole.” It is further the mission of the CFPB to “protect consumers from unfair, deceptive, or abusive practices and take action against companies that break the law.” See, https://www.consumerfinance.gov/about-us/the-bureau/.
Cotchett, Pitre & McCarthy, LLP has a long track record of representing consumers, small businesses, employees and whistleblowers who have been the victim of financial fraud, including in consumer class actions. For more information contact our firm at (650) 697-6000. The author of this article can be reached at firstname.lastname@example.org.