Connecticut Attorney General William Tong joined a coalition of 22 attorneys general in urging the Consumer Financial Protection Bureau (CFPB) to prohibit mortgage servicers from charging convenience fees. The coalition argues that these fees are exploitative and unfair, as homeowners have no choice in their servicers and fees often exceed the actual cost of processing payments. They request that the CFPB either ban such fees or limit them to actual costs, and require servicers to document their costs.
In-house legal teams should review all mortgage servicing agreements, loan servicing contracts, and vendor agreements with payment processors for clauses that authorize or define 'convenience fees' or 'payment processing fees.' Specifically examine fee schedules, payment method terms, and cost allocation provisions. Given the coalition's argument that fees often exceed actual processing costs and lack consumer choice, contracts may need amendments to: (1) cap fees at verifiable actual costs, (2) require detailed documentation and disclosure of processing costs to borrowers, and (3) potentially eliminate such fees for non-optional payment channels. Teams should also monitor for any CFPB rulemaking resulting from this petition to ensure future compliance.
Entity
Mortgage Servicers
Industry
Financial ServicesOfficial Press Release
https://portal.ct.gov/ag/press-releases/2022-press-releases/attorney-general-tong-calls-on-cfpb-to-prohibit-mortgage-servicers-from-charging-convenience-fees
state attorneys general multistate comment letter to cfpb co
https://portal.ct.gov/-/media/ag/press_releases/2022/state-attorneys-general-multistate-comment-letter-to-cfpb_convenience-fees_41122_final.pdf?rev=baf6911436064b58814d52d9b75bc789&hash=6DF955F0180BBF28E3F2E9D53692D67A
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
Connecticut Attorney General William Tong joined a coalition of states and local governments in filing suit against NHTSA over its rule weakening fuel economy standards for new passenger cars and light trucks. The lawsuit alleges the rule violates the agency’s statutory mandate and the Administrative Procedure Act; no penalty or final remedy is reported.
Connecticut Attorney General William Tong joined a multistate coalition suing the EPA over its repeal of greenhouse gas pollution limits for power plants and separately filed a notice of intent to sue over regulation of existing gas plants. The coalition asks the court to overturn the repeal and restore the protections; the release reports no monetary penalty or final order.
$400.0M
Connecticut Attorney General William Tong announced a $400 million settlement with Sandoz Inc. and Fougera Pharmaceuticals Inc. resolving allegations that the generic drug manufacturers conspired to inflate prices, limit competition, and restrain trade. The settlement includes consumer restitution and injunctive reforms; court approval was being sought.
Connecticut Attorney General William Tong joined a coalition of 21 attorneys general in submitting a comment letter opposing a DHS rule that allows certain affirmative asylum applications to be referred to removal proceedings without an asylum officer interview. The coalition argues the rule violates federal law and harms asylum seekers, including unaccompanied children; this was a policy opposition letter, not a privacy enforcement action.
Connecticut and Massachusetts co-led a coalition protest urging FERC to reject the proposed NextEra Energy-Dominion Energy merger. The coalition argued that the merger could increase market power and threaten energy affordability, reliability, and competition; the release does not report a final enforcement decision or penalty.
Connecticut officials warned residents about potential home improvement scams before an approaching nor’easter, including unlicensed contractors, high-pressure sales tactics, and demands for full payment upfront. The release provides consumer guidance on checking contractors and contract requirements; it does not announce an enforcement action or penalty against a named entity.