CFPB’s $21.7 Million Restitution Vacated in Mortgage-Service Row

July 26, 2021, 9:22 PM

The Consumer Financial Protection Bureau’s $21.7 million restitution judgment in a case against two law firms that allegedly provided unlawful mortgage relief services to consumers was vacated by the Seventh Circuit, even though it affirmed they weren’t practicing law while doing so.

Consumer First Legal Group LLC, The Mortgage Law Group LLP, and several affiliated attorneys were hit with a civil enforcement action by the CFPB alleging they violated Regulation O, a rule put out by the bureau to combat widespread deceptive practices by providers of mortgage-relief services. The firms allegedly misrepresented their services, leading consumers to believe they would ...

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