CFPB To Banks: Offer More “No Overdraft” Checking Accounts, Provide Accurate Credit Information

CFPB To Banks: Offer More “No Overdraft” Checking Accounts, Provide Accurate Credit Information

Some 10 million Americans are considered “unbanked,” often because they are believed to pose too high a credit risk for a bank to offer them a standard checking account. But the federal Consumer Financial Protection Bureau believes many of these people could be brought into the fold if more banks were to offer lower-risk deposit accounts that provided the benefits of a checking account without being a risk to the financial institution. [More]

Toyota Must Pay $22M For Charging Higher Interest To Non-White Borrowers

Toyota Must Pay $22M For Charging Higher Interest To Non-White Borrowers

Under the Equal Credit Opportunity Act, creditors are prohibited from discriminating against loan applicants based on race or national origin. But that was a rule Toyota’s financing unit allegedly violated, resulting in thousands of African-American, Asian and Pacific Islander borrowers paying higher interest rates than their white counterparts. Now, in an effort to resolve charges filed by the Consumer Financial Protection Bureau, Toyota Motor Credit Corporation must pay $21.9 million to wronged consumers.  [More]

“Buy Here, Pay Here” Dealer To Return $700K To Consumers Over Deceptive Lending Practices

“Buy Here, Pay Here” Dealer To Return $700K To Consumers Over Deceptive Lending Practices

Federal regulators continued their crackdown on not-so-upfront “buy-here, pay-here” auto dealers today, ordering a Colorado-based dealer to pay nearly $1 million in restitution and fines for operating an abusive financing scheme.  [More]

Law Firm Must Pay $3.1M For Operating Automated Debt-Collection Lawsuit “Factory”

Law Firm Must Pay $3.1M For Operating Automated Debt-Collection Lawsuit “Factory”

A Georgia-based law firm behind hundreds of thousands of debt-collection lawsuits, and its principal partners, have agreed to pay a total of $3.1 million in penalties to settle federal accusations that they were operating a lawsuit mill in violation of the law. [More]

(Mike Mozart)/
(Mike Mozart)

Verizon, Sprint Customers Have Until Dec. 31 To Claim A Piece Of The $158M Cramming Settlement Pie

The holidays can be a tiring, stressful time, full of never-ending checklists. While you might have checked off plenty of your to-do items, if you’re a Verizon or Sprint customer, you’ll want to make sure you add “check to see if I’m eligible for a bill-cramming refund,” to the top of your list.  [More]

CarHop Must Pay $6.4 Million In Penalties For  Jeopardizing Consumers’ Credit With Inaccurate Reports

CarHop Must Pay $6.4 Million In Penalties For Jeopardizing Consumers’ Credit With Inaccurate Reports

CarHop, one of the country’s largest “buy-here, pay-here” auto dealers, promotes itself as a company that offers fast approval for “just about anyone, despite bad or no credit.” While the company prides itself on the ability to help consumers, federal regulators say the dealer and its financing arm often did more harm than good when it came to reporting on customers’ credit behavior. To that end, CarHop must pay $6.4 million in penalties for providing damaging, inaccurate consumer information to credit reporting agencies (CRAs).  [More]

Lender EZCORP Must Pay $10M In Refunds, Fines For Illegal In-Person Debt Collection Practices

Lender EZCORP Must Pay $10M In Refunds, Fines For Illegal In-Person Debt Collection Practices

A small-dollar lender has been slammed with a top-dollar penalty by federal regulators who say that the company’s debt collection practices violated the law.  [More]

Consumer Advocates Ask Regulators To Investigate T-Mobile Over Advertising, Debt Collection Practices

Consumer Advocates Ask Regulators To Investigate T-Mobile Over Advertising, Debt Collection Practices

Those two-year mobile phone contracts we all signed for so long became a relic of the past pretty quickly over the last two years, with national providers all abandoning ship. T-Mobile moved to “contract freedom” almost two years ago now, and has since then continued to make a big deal over the fact that their users are neither locked into time-locked agreements nor face old-school high data overage fees. [More]

Debt Collector Must Pay $2.5M In Refunds, Penalties For Illegally Collecting Consumers’ Old AT&T Debt

Debt Collector Must Pay $2.5M In Refunds, Penalties For Illegally Collecting Consumers’ Old AT&T Debt

Federal regulators continued their fight against unscrupulous debt collectors today, ordering a Massachusetts organization to pay $2.5 million in refunds and penalties for illegally collecting unverified debt and providing inaccurate information to national credit reporting agencies.  [More]

Subprime Credit Reporting Company To Pay $8M For Illegally Obtaining Consumers’ Credit Info

Subprime Credit Reporting Company To Pay $8M For Illegally Obtaining Consumers’ Credit Info

Under the Fair Credit Reporting Act, companies – and lenders – are allowed to access credit reports only for “permissible purposes,” like determining if a person is creditworthy. But federal regulators say a Florida-based subprime credit reporting company illegally obtained tens of thousands of consumers’ credit reports for use in marketing materials for potential clients, including payday lenders.

[More]

Consumers saved $9 billion in overdraft fees since 2009.

Report: Credit Card Reforms Saved Consumers $16B In Six Years

In 2009, lawmakers passed a massive set of reforms for the credit card industry – known as the Credit Card Accountability Responsibility and Disclosure Act (CARD Act) — aimed at protecting consumers though transparency, fairness, accountability and better access to an array of financial products. A new report from the agency tasked with enforcing these rules, finds that nearly six years after implementation, consumers have saved nearly $16 billion in fees.  [More]

(Steven Depolo)

Regulators Take Action Against Online Lender For Deceiving Borrowers On Default Charges

When a company’s name has the word “integrity” in it, you may assume it’s a wholesome, truthful operation forthcoming with information that its customers would find beneficial. That apparently wasn’t the case with Integrity Advance, as federal regulators accused the short-term online lender of deceiving borrowers about the true cost of its loans.  [More]

(David Goehring)

Federal Inquiry Probes TCF Bank’s Overdraft Practices

Overdraft fees cost consumers an average of $32 billion each year. The hefty fees and their often less-than-transparent policies, which vary greatly between banks and financial products, have long garnered the ire of consumer advocates and federal regulators. Case in point: a Minnesota-based bank is now under investigation for possibly unfair and deceptive practices related to its overdraft program.  [More]

The operation sent millions of letters like the one picture above to students and families promising assistance in receiving financial aid.

Feds Sue Scammers Who Charged For Bogus Student Financial Aid Assistance

Paying for college out of pocket is nearly impossible for millions of prospective students. Instead, these individuals turn to scholarships, grants, and student loans, often relying on financial service programs to assist them in obtaining the funds. But not all of the companies promising a helping hand are looking out for your best interests. That was apparently the case for a California company accused of ripping off tens of thousands of victims in a nationwide financial aid scam. [More]

(https://www.flickr.com/photos/tonyjcase/8734645882)

Nation’s Biggest Employment Background Screeners Must Pay $13M Over Inaccurate Reports

Before offering a prospective employee a job, many companies will first perform a background check. As with credit reports, any inaccuracies in these transcripts can affect an applicant’s eligibility for employment. To that end, federal regulators have ordered two of the country’s largest employment background screening report providers to pay $13 million in penalties and refunds for providing inaccurate information.  [More]

RushCard To Create Reimbursement Fund For Customers Unable To Access Money

RushCard To Create Reimbursement Fund For Customers Unable To Access Money

The thousands of unbanked consumers who rely on prepaid RushCards but have been unable to access their funds because of a technical glitch, may receive compensation for the issue.  [More]

Feds Win Default Judgment Against Corinthian Colleges Over Predatory Lending Scheme

Feds Win Default Judgment Against Corinthian Colleges Over Predatory Lending Scheme

In September 2014, just seven months before Everest University, WyoTech and Heald College closed their doors, federal regulators sued the for-profit colleges’ parent company Corinthian Colleges Inc claiming it duped thousands of students into taking out costly, predatory, and often financially devastating, private student loans to finance their post-secondary education. This week, the Consumer Financial Protection Bureau won a default judgment against the for-profit educator for engaging in a predatory lending scheme.  [More]

Auto Lender Must Pay $3.28M In Refunds, Penalties For Illegal Debt Collection Tactics Against Servicemembers

Auto Lender Must Pay $3.28M In Refunds, Penalties For Illegal Debt Collection Tactics Against Servicemembers

Four months after federal regulators filed a lawsuit against an Ohio-based auto loan company over allegations it violated consumer protection laws – including those protecting servicemembers – in order to collect debts, Security National Automotive Acceptance Company (SNAAC) will pay $3.28 million in refunds and fines to resolve the case.  [More]