CFPB settles with Monster Loans

The Consumer Financial Protection Bureau has announced the filing of a proposed stipulated final judgment to resolve allegations in its lawsuit against California mortgage lender Chou Team Realty, LLC, which does business as Monster Loans, and several individuals and related companies, including Thomas Chou and Sean Cowell.

The Bureau's complaint alleged that Chou and Cowell were among the leaders of a scheme to use Monster Loans’ account with a major credit bureau to unlawfully obtain consumer reports for their associated student loan debt-relief companies, which in turn used the consumer reports to deceptively market their services nationwide and then charged consumers illegal fees. The proposed settlement, if entered by the court, would impose an $18 million redress judgment against Monster Loans, ban Monster Loans, Chou, and Cowell from the debt-relief industry, and impose a total $450,001 civil money penalty against them.

If approved by the court, the redress and civil penalty amounts would be partially suspended based on the defendants' alleged limited ability to pay.