Nationwide Biweekly Administration, Inc., Loan Payment Administration LLC, and Daniel S. Lipsky
On May 11, 2015, the Bureau filed a complaint against Nationwide Biweekly Administration, Inc., Loan Payment Administration LLC, and Daniel S. Lipsky alleging that they engaged in abusive and deceptive acts and practices in violation of the Consumer Financial Protection Act (CFPA) and the Telemarketing Sales Rule (TSR) regarding a mortgage payment product known as the “Interest Minimizer Program,” or IM Program. The Bureau alleges that the defendants misrepresented their affiliation with consumers’ mortgage lenders; the amount of interest savings consumers would realize, and when consumers would achieve savings on the IM Program; consumers’ ability to attain the purported savings on their own or through a low- or no-cost option offered by the consumers’ servicer; and fees for the program. The Bureau sought a permanent injunction, consumer redress, and civil money penalties. A trial was held beginning on April 24, 2017, and on September 8, 2017, the court issued an opinion and order finding that the defendants had engaged in deceptive and abusive conduct in violation of the CFPA and TSR. The court imposed a $7.93 million civil money penalty, but denied the Bureau’s request for restitution and disgorgement. On November 9, 2017, the court reduced the previous order to a judgment that includes permanently enjoining defendants from engaging in specified acts or practices. The court denied defendants’ post-trial motions on March 12, 2018, and both parties filed a notice of appeal. On January 27, 2023, the United States Court of Appeals for the Ninth Circuit issued a decision vacating the district court’s September 8, 2017 order and remanded the case to the district court to consider several issues raised on appeal. The Ninth Circuit’s decision did not include a ruling on the merits of the parties’ respective appeals. The case remains pending.