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ARTICLE · 07 JANUARY 2022

CFPB Takes Action Against Purchaser Of Structured Settlements

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On December 17, the CFPB filed a proposed stipulated final judgment and order against a limited liability company, its principals, and an attorney who allegedly provided advisory services to consumers...

United StatesConsumer Protection
Moorari K. Shah
Moorari K. Shah
Gabriel Khoury
Gabriel Khoury
A.J. Dhaliwal
A.J. Dhaliwal
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On December 17, the CFPB filed a proposed stipulated final judgment and order against a limited liability company, its principals, and an attorney who allegedly provided advisory services to consumers who sold structured settlements to the company. The CFPB alleged that the company steered consumers to consider signing away future structured settlement payments for lump-sum payments, and to receive "independent advice" from an attorney who was paid directly by the company who indicated to consumers that the transactions required very little scrutiny.

The CFPB's original complaint filed in 2016 alleged that the attorney's conduct was unfair, abusive, and deceptive in violation of the CFPA for, among other things, failing to disclose his relationship with the company. The complaint also claimed that the company and its principals engaged in abusive conduct for encouraging consumers to take advances on their structured settlements and falsely representing that the

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