Financial Services - Investigations, Regulation, and Litigation
Banks, nonbank lenders and servicers, and fintechs today face unprecedented risks and challenges. Financial services companies confront increasingly complex regulations, scrutiny from federal and state regulators and law enforcement, and the threat of consumer class actions. The Firm’s financial services team consists of expert practitioners with extensive experience helping companies and individuals navigate these challenges.
Our team has successfully resolved investigations conducted by every major federal and state financial services enforcement agency, including: the Consumer Financial Protection Bureau (CFPB); the Federal Trade Commission (FTC); the Department of Justice (DOJ); the prudential bank regulators such as the Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), and Federal Reserve; the Department of Housing and Urban Development (HUD); State attorneys general; and State financial institutions departments. These matters have included a variety of issues, ranging from alleged violations of consumer financial statutes (e.g., Truth in Lending Act, Electronic Fund Transfer Act, Real Estate Settlement Procedures Act, Equal Credit Opportunity Act, Fair Housing Act) and claims alleging unfair, deceptive, or abusive acts or practices, to allegations of fraud under the False Claims Act and Financial Institutions Reform, Recovery, and Enforcement Act.
Our lawyers advise financial services companies on regulatory issues relating to deposits, mortgages, fair lending, personal lending, credit cards, auto finance, payment systems, and various alternative payment methods. Clients include banks, credit unions, mortgage lenders and servicers, online lenders, and fintechs.
Paul Hastings lawyers have defended dozens of putative class actions and other high-stakes litigation filed around the country against financial institutions, including banks, non-bank lenders and servicers, credit card issuers, and fintechs. We have litigated significant cases arising under a wide range of federal and state consumer protection laws.
Select representations in this area include:
Leading national bank in a joint CFPB and state attorney general investigation into alleged RESPA violations, resulting in a settlement with no admission of liability
Leading national bank in CFPB investigation regarding deposit practices and deposit fees
Large lender, with numerous affiliates performing related services, in parallel investigations by several federal government agencies and a large group of state attorneys general
Major nonbank mortgage servicer in a CFPB investigation regarding compliance with mortgage servicing rules
Numerous lenders in connection with redlining, underwriting discrimination, and pricing discrimination allegations by the DOJ, HUD, CFPB, prudential banking regulators, and state regulators, including matters which were closed without further action
Providing fair and responsible banking advice to financial institutions of varying sizes, including conducting compliance management and fair lending risk assessments
Large national bank in CFPB investigation regarding compliance with the EFTA, Regulation E, and the prohibition against engaging in unfair practices under the Consumer Financial Protection Act, resulting in a settlement with no admission of liability
Leading financial technology company offering online consumer and small business loans in investigations by the CFPB, FTC, and state regulators regarding loan origination and servicing practices
Participants in the student loan industry in investigations initiated by the CFPB, including matters closed without further action
Major global fintech in FTC investigation regarding company’s products and services
Leading national bank in an investigation by the New York Attorney General regarding deposit account practices
Large national bank in False Claims Act (FCA) and Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) investigations by the U.S. Attorney’s Office for the Southern District of New York
Former directors and officers with respect to regulatory proceedings and litigation involving troubled and failed financial institutions
Banks and nonbank mortgage lenders in putative class actions challenging the formation and operation of MERS
Large mortgage servicer in nationwide class action regarding customer enrollment in home service and home warranty plans; nationwide settlement reached
Leading credit card issuer in class action regarding the reduction in credit lines and assessment of overlimit fees; nationwide class settlement reached
Leading national bank in a putative nationwide class action alleging RESPA violations in connection with an alleged captive mortgage reinsurance arrangement; dismissal upheld on appeal
Marketplace lender in putative class action alleging unlawful lending under state law
Multiple financial institutions in qui tam actions brought under the FCA and state law corollaries