CFPB: Lenders falsely implied government approval

by Ryan Smith12 Feb 2015
The Consumer Financial Protection Bureau is taking action against three mortgage companies for misleading consumers, it was announced today. The agency is taking action against the companies for misleading consumers with advertisements implying U.S. government approval of their products.

The CFPB is suing reverse lender All Financial Services, and is ordering Flagship Financial Group and American Preferred Lending to end what it alleges is false advertising.

“Each of these companies has misled consumers with false advertising,” said CFPB Director Richard Cordray. “The U.S. government is very serious about stopping companies from falsely claiming federal authority, and we are particularly concerned about false or deceptive statements made in advertisements about reverse mortgages that target older Americans.”

The agency alleges that mailings by the three companies imitated U.S. government notices. “While government programs insure or guarantee certain mortgages, the private lenders that make these loans are not government entities and are not affiliated with the U.S. government,” the CFPB wrote in a statement.
 

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