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ARTICLE · 07 AUGUST 2012

CFPB Files First Public Enforcement Action Against California Loan Modification Operation

Loeb & Loeb LLP
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Taking a page from the playbook of the Federal Trade Commission, the new Consumer Federal Protection Bureau (CFPB) has filed its first civil enforcement action in federal court.

United StatesConsumer Protection
Loeb & Loeb'S Financial Reform Task Force
Loeb & Loeb'S Financial Reform Task Force

Taking a page from the playbook of the Federal Trade Commission, the new Consumer Federal Protection Bureau (CFPB) has filed its first civil enforcement action in federal court against participants in a Los Angeles-based loan modification program. Consumer Financial Protection Bureau v. Gordon et al, initially filed under seal in the Central District of California on July 18, named California attorney Chance E. Gordon and The Gordon Law Firm, P.C., along with another individual and corporations allegedly involved in the program.

The CFPB sought and obtained a temporary restraining order freezing the defendants' assets and appointing a temporary receiver; District Court Judge Ronald Lew granted the CFPB's requests the same day the action was filed. The action also seeks an unspecified amount of monetary equitable relief for rescission or reformation of contracts, refund of moneys paid, restitution and disgorgement or compensation for unjust enrichment.

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