The Consumer Financial Protection Bureau sued two Ohio companies and their owner May 11, alleging that they pocketed nearly $50 million in fees while misrepresenting the amount borrowers could save through a biweekly mortgage payment program. (CFPB v. Nat’l Biweekly Admin., Inc., N.D. Cal., 15-cv-2106, complaint 5/11/15).
The bureau said that Nationwide Biweekly Administration Inc., Loan Payment Administration LLC and Daniel Lipsky improperly promised customers mortgage savings without a payment increase and immediate savings that would actually take years to realize.
The defendants also misrepresented where customers’ money was going, including setup fees up to $995 per ...
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