By Andrew A. Turner, J.D.
A land-development company and individuals involved in a property development have been ordered by the Consumer Financial Protection Bureau to repair the Tennessee county roads at Hawks Bluff Development that they failed to maintain as promised in marketing materials. It was back in July 2013, that a call to action in the Bluffites blog urged residents to complain to the CFPB that they were not delivered the promised goods and services when they bought their land.
The CFPB exercised its authority under the Interstate Land Sales Full Disclosure Act, a statute formerly administered by the Department of Housing and Urban Development, until the Dodd-Frank Act transferred enforcement authority to the Bureau. The CFPB said that the developers falsely represented that roads would be maintained until they were dedicated to and accepted by county government.
Under the terms of a consent order, the developers will be required to repair roads in the development to the CFPB’s satisfaction and consistent with an engineering report to be prepared by an independent consultant. Within 60 days, a comprehensive compliance plan for road repair must be submitted to the CFPB Enforcement Office for review. Any changes in the compliance plan requested by the CFPB must be made within 15 days. The developers will be required to implement and adhere to the steps and deadlines outlined in the approved compliance plan.
The consent order also includes provisions for compliance monitoring by the CFPB. Modification of non-material requirements, such as reasonable extensions of time, requires a written request to the CFPB Enforcement Office.
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