CFPB, NY Attorney General Sue Lender for Deceiving 9/11 Heroes

02/14/17 – The CFPB and the NY Attorney General have filed a lawsuit against a company, its affiliates, and their owners, for allegedly deceiving 9/11 heroes out of money intended to cover medical costs, lost income, and other needs.

The New Jersey-based company offers advances to consumers entitled to payouts from victim compensation funds or lawsuit settlements. The company targeted fund awardees including police, firefighters, paramedics, and others who were first responders to the World Trade Center attack on September 11, 2001. Many of these first responders suffer from cancers and other respiratory illnesses related to their exposure to dust and debris at the attack site, post-traumatic stress disorder, depression, and memory loss.

The CFPB and the New York Attorney General allege that the defendants violated several laws, including the Dodd-Frank Wall Street Reform and Consumer Protection Act’s prohibition on deceptive and abusive acts and practices. Specifically, the CFPB and New York Attorney General allege that the lender:

• Lured consumers into costly payouts by lying about the terms of the deal;
• Lied about speeding up the processing of consumers’ claims;
• Deceived consumers about when they would receive the money from the lender; and
• Illegally collected money from consumers.

The New York Attorney General also alleges additional violations of New York state law in the complaint. The complaint is not a finding or ruling that the defendants have actually violated the law.

CFPB Press Release, Complaint.