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.


  • by Anonymous | 2/12/2015 10:58:37 PM

    American preferred lending changed thier name to Realty Lending Group. Crooks should be barred from the industry all together.

  • by | 2/15/2015 11:07:55 AM

    If they changed names already, the CFPB probably doesn't even know they are barking up the wrong tree. If the bad apples can just switch companies or create new entities overnight, they will never eliminate the crooks in the industry. Throw violators in jail and stop screwing around CFPB. This is ridiculous and not the only major violation going on.


Should CFPB have more supervision over credit agencies?