Edition 1 • March 27, 2026
The Week in Consumer Protection
Credit bureaus face new accountability, the NY Attorney General targets predatory lenders, zombie mortgages resurface, and a landmark $191M refund is on its way to consumers.
CFPB
NY Attorney General
CourtListener
FTC
Federal Courts
This has been a consequential week for consumer rights. The Consumer Financial Protection Bureau is pressing credit reporting companies harder than ever on the accuracy of the data they maintain about you. Meanwhile, New York Attorney General Letitia James filed two major lawsuits targeting predatory lending practices, and the CFPB issued a warning about so-called "zombie" second mortgages that are coming back to haunt homeowners years after they were forgotten. Here is everything you need to know.
CFPB
Credit Bureaus Put on Notice: "Junk Data" in Your Report Is Against the Law
The CFPB made a forceful public statement this week: including inaccurate information in consumer credit reports is a violation of federal law, and the Bureau intends to hold credit reporting companies accountable.
Under the Fair Credit Reporting Act (FCRA), credit bureaus like Experian, Equifax, and TransUnion are required to maintain "reasonable procedures" to ensure the accuracy of what they report. In practice, that standard has been inconsistently enforced for years. The CFPB's announcement signals a shift toward more aggressive oversight.
Why does this matter in your daily life? A single error on your credit report can increase your mortgage rate by a full percentage point, disqualify you from an apartment lease, or cost you a job offer. The Bureau is making clear that consumers have the right to a report that reflects reality.
General Information
Pull your free credit reports at AnnualCreditReport.com and review each one carefully. If you find an error, dispute it in writing with the credit bureau. If they fail to investigate or correct it within 30 days, you may have a legal claim under the FCRA. An attorney can evaluate your situation at no cost.
Read the CFPB announcement →
NY Attorney General
AG James Sues Predatory Lender OneMain Financial in Multi-State Action
New York Attorney General Letitia James, leading a bipartisan coalition of state attorneys general, filed a lawsuit against OneMain Financial, one of the largest subprime personal loan companies in the country. The suit alleges that OneMain employed a systematic scheme to trap consumers in cycles of debt.
According to the complaint, OneMain's business model relied on convincing existing borrowers to refinance their loans before they were paid off, adding new fees and extending repayment timelines each time. The result: borrowers paid far more than they originally owed and found it nearly impossible to get out from under the debt.
In a separate action filed the same week, AG James also sued a home solar power company and its associated lenders for defrauding New York consumers out of hundreds of millions of dollars through deceptive financing arrangements.
General Information
If you have a loan with OneMain Financial and have been repeatedly encouraged to refinance, keep every document and statement you have received. You may be part of the class affected by this lawsuit. If a lender is pressuring you to refinance a loan you have not yet paid off, that is a red flag worth discussing with an attorney.
View NY AG press releases →
CFPB
"Zombie" Second Mortgages Are Coming Back to Life
The CFPB issued an alert about a troubling trend: second mortgages that homeowners assumed were settled, discharged, or forgotten are resurfacing years or even decades later, often with aggressive new servicers demanding payment.
These so-called "zombie mortgages" were frequently originated before the 2008 financial crisis. In many cases, homeowners stopped receiving bills and reasonably believed the debt was resolved. Now, debt buyers are acquiring these old second liens for pennies on the dollar and attempting to collect, sometimes threatening foreclosure.
The CFPB's warning is aimed at both consumers and servicers. Homeowners need to know that these collection attempts are subject to consumer protection laws, and servicers need to know that the Bureau is watching.
General Information
If you receive a notice about an old second mortgage you thought was resolved, do not ignore it, but do not pay without investigating. Request written verification of the debt. Check whether the statute of limitations has expired. An attorney can review the specific circumstances and advise you on your options, including whether the FDCPA or state consumer protection laws apply.
Read the full CFPB alert →
CFPB
$191 Million in Refunds Headed to Consumers Scammed by Tempoe
Over 250,000 American consumers will begin receiving refund checks as part of a $191 million distribution ordered by the CFPB. The money comes from enforcement action against Tempoe, LLC, a leasing company that the Bureau found had systematically tricked retail customers into expensive lease-to-own agreements.
Tempoe operated at point-of-sale in major retail stores. Consumers who thought they were making a simple purchase were instead enrolled in lease agreements that ultimately cost them two to three times the retail price of the item. Many consumers did not realize they were leasing rather than buying until they received their first statement.
General Information
If you made a purchase at a major retailer and later discovered you were enrolled in a Tempoe leasing plan, watch your mailbox for a refund check. Do not throw away any official correspondence from the CFPB. If you believe you were similarly deceived by another leasing or financing company, you may have a separate claim.
Read the CFPB announcement →
CFPB
TransUnion Subsidiary Agrees to Three-Year Government Contract Ban
Argus Information and Advisory Services, a data analytics subsidiary of TransUnion, agreed in writing that it will not seek any government contract with the CFPB for three years. The agreement is part of the Bureau's effort to hold its own contractors accountable for wrongdoing.
TransUnion is one of the three major credit bureaus that control the credit reporting system in the United States. When a subsidiary of one of these bureaus faces consequences from the very agency that oversees consumer financial protection, it signals meaningful regulatory pressure.
General Information
This is context, not a direct action item, but it matters. The regulatory environment for credit bureaus is becoming more demanding. If you have been unable to get TransUnion to correct an error on your report through the normal dispute process, you are not alone, and the law provides remedies beyond just filing disputes.
Read the full report →
CourtListener • Federal Courts
Court Watch: Recent Consumer Protection Opinions
This week's federal court activity included Fiecke-Stifter v. MidCountry Bank, a case touching on consumer banking disputes that may have implications for how financial institutions handle customer complaints and error resolution under the Electronic Fund Transfer Act.
We continue to monitor CourtListener for published opinions in FCRA, FDCPA, TCPA, and EFTA cases across federal districts. When a decision has direct implications for consumer rights, we will break it down here in plain language.
Why Court Decisions Matter
Federal court opinions shape how consumer protection laws are interpreted and applied. A favorable ruling in one district can strengthen cases for consumers across the country. We track these developments so you do not have to.
View on CourtListener →
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