COO held liable for fraud scheme; companies offering negative option subscriptions on alert; NY law firm settles with CFPB; court says CFPB enforcement authority extends to scholarship assistance marketing.

The bureau and the New York Office of the Attorney General are suing Michigan-based auto lender Credit Acceptance Corp. over violations of federal and state consumer protection laws.

The servicer argued that the borrower hadn't returned the loan modification agreement in time. But the court said that detail was a matter of factual dispute.

LoanCare agrees to pay $4.5 million to settle a class-action suit centered on whether “convenience” fees for paying by phone or online are allowed in West Virginia. Meanwhile, the bureau is making servicers refund fees for paying by phone. 

Wells Fargo and the CFPB are reportedly negotiating over violations in several lines of business at the megabank. Separately, Sen. Elizabeth Warren (D-MA) is continuing her effort to draw attention to fraudulent instant payments. 

The request for information drew responses from a handful of labor unions and employer trade groups from a variety of industries.

CSBS names new policy and supervision chief; CFPB studies student banking; bureau sues remittances firm; DOJ settles discrimination claims with bank; Regulation F MVNs are optional; bureau states clearly false data don’t belong on credit reports.

The Center for Responsible Lending and Consumer Bankers Association have jointly requested rulemaking on personal lending, while the National Consumer Law Center wants rulemaking to prohibit the listing of medical debt on credit reports.

While the CFPB has no plans to restrain the use of forced arbitration clauses, Director Rohit Chopra is open to the idea.

The CFPB said it would no longer tolerate nursing homes requiring caretakers to take on a prospective nursing home resident’s costs of care as a condition of admission.