What’s revealing is the agency that brought it: the Federal Trade Commission. Seven weeks after the new Consumer Financial Protection Bureau opened its doors with a mandate to police the consumer financial marketplace, the FTC shows no signs of backing off its own overlapping jurisdiction over financial fraud.
In addition to the payday lender case announced yesterday, the FTC earlier this month amended its complaint against U.S. Mortgage Funding Inc., adding a defendant and asking the court to issue a preliminary injunction. The FTC has charged the company with falsely promising financially distressed consumers that they would get loan modifications to make their mortgages more affordable.
