Consumer Financial Protection Bureau files suit to protect those poisoned by lead paint, others aggressively persuaded to sell large payouts for fraction of value
WASHINGTON – U.S. Senators Ben Cardin and Barbara A. Mikulski (both D-Md.) and Senator Edwarwd J. Markey (D-Mass.) lauded the Consumer Financial Protection Bureau (CFPB) for its work to protect consumers, primarily Marylanders, who may have been victims of financial fraud by Access Funding, LLC of Chevy Chase and others. The CFPB suit seeks to remedy “an illegal scheme in which victims of lead-paint poisoning and others were deceived into signing away future settlement payments in exchange for a significantly lower lump-sum payout.” The Senators wrote to CFPB Director Richard Cordray in September urging the agency to investigate these questionable structured-settlement transactions that potentially constituted financial fraud.
“Taking advantage of individuals who have already been victimized by lead-paint poisoning is unconscionable. We are pleased the CFPB took up our requested investigation and is pursuing a path to protect the vulnerable from further abuse at the hands of businesses designed to deceive and exploit Marylanders and other consumers. This case is a prime example of why we need a strong CFPB to protect consumers from those whose purpose is to swindle and do harm to others,” Senators Cardin, Mikulski and Markey said in response to the CFPB announcement.
“The CFPB’s complaint alleges that the defendants violated the Dodd-Frank Wall Street Reform and Consumer Protection Act’s prohibition on unfair, deceptive, and abusive acts and practices.” CFPB alleges the defendants by steering consumers to a “sham advisor” and “exploited consumers’ confusion to keep deals on track.”