CFLA illegal fees $3M lawsuit settlement

Certified Forensic Loan Auditors (CFLA) agreed to a $3 million settlement with the Consumer Financial Protection Bureau (CFPB) to provide refunds to consumers for illegal fees.

The settlement benefits all customers who paid fees to CFLA between July 1, 2014, and July 20, 2020.

Certified Forensic Loan Auditors was a mortgage assistance relief and financial advisory company that sold services to customers online. CFLA and CEO Andrew Lehman allegedly violated federal law by charging illegal fees to customers.

The company allegedly promised consumers that its audits could help fight foreclosure actions brought by lenders. According to a lawsuit from the CFPB, CFLA failed to comply with federal regulations by charging consumers $1,495 upfront before producing and delivering audit documents or providing any other promised relief to customers. 

The CFPB claims consumers were misled by CFLA’s representations into believing the audit documents could help them prevent foreclosures. In reality, CFLA allegedly made “no effort” to determine if their services were actually effective in preventing foreclosures.

“The form, structure, and content of each Audit and package of litigation documents are substantially similar to all others,” the lawsuit notes. “Defendants make relatively minor changes to particularize each Audit and package of litigation documents to each borrower such as the borrower’s name, address, and specific mortgage lenders and servicers.”

CFLA agreed to pay over $3 million to resolve these claims without admitting any wrongdoing. 

The settlement includes $3 million in redress and $40,000 in civil penalties. In addition to providing refunds, the settlement bans CFLA and its CEO from providing financial advisory services or mortgage assistance relief services in the future. 

Under the terms of the CFPB settlement, CFLA customers can receive a refund for the fees they paid the company. No disbursement details are available in the final judgment order.

Consumers must provide a list of all fees paid to CFLA and proof of payments. Failure to provide this documentation may result in denied claims.

Consumers who receive a refund from this settlement are not barred from taking legal action against CFLA.

Affected customers do not have the option to object to the settlement or exclude themselves from the deal. 

Final judgment in the case was entered July 20, 2020.

In order to receive a refund from this CFPB settlement, consumers must submit a valid claim form by the extended deadline of Jan. 16, 2023. The original deadline for the settlement was July 20, 2022, but was extended to allow more consumers to participate in the deal.

Who’s Eligible

Customers who paid fees to CFLA between July 1, 2014, and July 20, 2020

Potential Award

Refund for fees paid to the company

Proof of Purchase

Supporting documentation may include proof of canceled checks or money orders; eCheck receipts; credit card, debit card, or bank statements showing payment was sent to CFLA; or an email confirmation that a specific payment was received

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

01/16/2023

Case Name

Consumer Financial Protection Bureau, et al. v. CFLA, Case No. CV 19-07722-ODW, in the U.S. District Court for the Central District of California

Final Hearing

N/A

Settlement Website

CFPB-CFLA.org

Claims Administrator

CFPB v. CFLA
Civil Penalty Fund Third-Party Administrator
P.O. Box 6909
Portland, OR 97228-6909
info@cfpb-CFLA.org
855-675-2859

Class Counsel

Benjamin Vaughn
Gabriel S H Hopkins
Kevin E Friedl
Leanne E Hartmann
CONSUMER FINANCIAL PROTECTION BUREAU

Defense Counsel

Andrew Lehman
Maryam Atighechi
ATIGHECHI LAW GROUP APC

Michael R Carrigan