Add-ons allowed in states like Louisiana defeat the purpose of initial interest rate caps.

Most State Laws Can’t Protect Borrowers From Predatory Installment Loans, Open-End Lines Of Credit

As regulators continue to craft rules meant to crackdown on costly and harmful short-term payday lending, companies are offering alternative products like installment loans and open lines of credit to consumers. But, as it turns out, these cash infusions can be just as devastating to those in need, and few states offer sufficient protections for borrowers. [More]

Western Union-Owned Mortgage Company Must Return $33.4M To Customers

Western Union-Owned Mortgage Company Must Return $33.4M To Customers

A mortgage payment company owned by Western Union has agreed to return $33.4 million to consumers following allegations that it misled customers into thinking they could save thousands of dollars on their home loans. [More]

Appeals Court Revives Texas Bank’s Lawsuit Challenging Constitutionality Of CFPB

Appeals Court Revives Texas Bank’s Lawsuit Challenging Constitutionality Of CFPB

This week, the Consumer Financial Protection Bureau celebrates its fourth anniversary of protecting consumers from harmful practices and shady characters in the financial sector. But instead of buying the regulatory arm a big ol’ birthday cake, a federal appeals court is gifting the Bureau with a revived lawsuit challenging its constitutionality. [More]

Discover Bank Must Pay $18.5 Million Over Illegal Student Loan Servicing Practices

Discover Bank Must Pay $18.5 Million Over Illegal Student Loan Servicing Practices

As federal regulators continue to probe potentially unscrupulous student loan servicing practices, the Consumer Financial Protection Bureau has ordered Discover Bank and its affiliates to pay nearly $18.5 million in refunds and fines for, among other things, overstating amounts due on student loans and failing to notify borrowers of their rights. [More]

Expansion Of Military Lending Act Closes Loopholes Exploited By Predatory Lenders

Expansion Of Military Lending Act Closes Loopholes Exploited By Predatory Lenders

Nearly a decade after legislation was put in place to protect U.S. military personnel and their families from predatory financial products, the Military Lending Act received a much-needed update to close loopholes often exploited by shady lenders to skirt the rules and put the financial lives of servicemembers at risk. [More]

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Citibank Must Pay $700M Over Illegal Marketing, Collection Practices

The Consumer Financial Protection Bureau ordered Citibank and one of its subsidiaries to pay $700 million in relief to more than 8.8 million consumers for engaging in a string of illegal credit card practices, including deceptively marketing and billing for debt protection and credit monitoring services, and misrepresenting fees related to debt collection actions. [More]

CFPB Reminds Retailers They Can’t Accept Military Allotments For Certain Purchases

CFPB Reminds Retailers They Can’t Accept Military Allotments For Certain Purchases

Allotments allow military servicemembers to automatically direct some of their paycheck to parties of their choosing, ideally for savings, insurance premiums, housing payments, and support of dependents. Until recently, allotments could also be used to make retail purchases, but such transactions weren’t covered by many of the legal protections that come with traditional payment methods like electronic checks and debit cards. Recently enacted rules now prohibit the use of allotments for buying personal property, and federal regulators are reminding retailers they have to follow the law. [More]

CFPB Launches Monthly Reports To Showcase Financial Difficulties In Specific Areas Of The U.S.

CFPB Launches Monthly Reports To Showcase Financial Difficulties In Specific Areas Of The U.S.

Have you ever wondered if people on the other side of the country run into the same difficulties dealing with financial institutions as you do? Well, wonder no more, as the Consumer Financial Protection Bureau announced today that it will provide a peek into the overall state of consumer complaints in the U.S. and how individuals in certain areas deal with companies providing financial products and services through a new monthly series. First up: Milwaukee, WI, and debt collection. [More]

Consumer Groups Urge CFPB To Provide Better Oversight, Rules Over Student Loan Servicing

Consumer Groups Urge CFPB To Provide Better Oversight, Rules Over Student Loan Servicing

Two months ago, the Consumer Financial Protection Bureau took the first steps in tackling issues within the student loan servicing arena by asking consumers and organizations to share their thoughts on the state of an industry that is tasked with recouping the more than $1.2 trillion in outstanding student loan debt in the U.S. Now, as the deadline to submit comments has come and gone, we know a bit more about just how the industry is perceived by those tasked with sticking up for consumers.  [More]

Honda Finance Unit Must Pay $24 Million For Charging Higher Interest To Non-White Borrowers

Honda Finance Unit Must Pay $24 Million 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 Honda’s financing unit allegedly violated, resulting in thousands of African-American, Hispanic, and Asian and Pacific Islander borrowers paying higher interest rates than white borrowers for their auto loans. Now, as part of a settlement with federal regulators to resolve allegations that the company allowed discriminatory loan pricing, the company must provide $24 million in restitution to borrowers. [More]

Bank Of America, Wells Fargo Top List Of Most Complained About Mortgage Issuers

Bank Of America, Wells Fargo Top List Of Most Complained About Mortgage Issuers

For the past four years, the Consumer Financial Protection Bureau’s Consumer Complaint Database has seen its fair share of consumer issues related to mortgages. In fact, complaints regarding loan modification, collection, foreclosure, loan servicing, payments and escrow accounts continue to be one of the biggest financial thorns in consumers’ sides. And the worst offender? Bank of America. [More]

CFPB Releases Educational Guides To Help Non-English Speakers Avoid Scams, Understand Financial Issues

CFPB Releases Educational Guides To Help Non-English Speakers Avoid Scams, Understand Financial Issues

Understanding the world of finance can be difficult for just about anyone in this country, but especially so when the rules of the industry are written in a language that you might not be proficient in. For these consumers, the Consumer Financial Protection Bureau has created a new set of guides aimed at helping them avoid financial devastation. [More]

Regulator Issues “Guiding Principles” For Making Real-Time Payments Safe, Secure

Regulator Issues “Guiding Principles” For Making Real-Time Payments Safe, Secure

If you buy something with a debit/credit card or an online check, there can be a delay of hours or days before the other party gets those funds. Advances in technology are allowing payment platforms to cut that down to mere seconds, which could help consumers by preventing banks from re-ordering multiple transactions to maximize overdrafts. But as non-cash payments inch closer to real-time transactions, federal regulators want to ensure that companies are following certain best practices to make things safe and consumer-friendly as possible. [More]

Military Personnel Face Student Loan Issues Despite Required Protections

Military Personnel Face Student Loan Issues Despite Required Protections

The Servicemembers Civil Relief Act (SCRA) provides a number of protections for military personnel and their families when it comes to private and federal student loans. While these benefits aim to alleviate the burden servicemembers face when paying back their educational debts, a new report from the Consumer Financial Protection Bureau shows that many student loan servicers continuously fail to uphold their end of the SCRA requirements.  [More]

Companies Must Refund Millions Of Dollars For Credit Card Add-On Services Customers Never Received

Companies Must Refund Millions Of Dollars For Credit Card Add-On Services Customers Never Received

As a rule of thumb, if you’re a company and you charge a customer for a service or product, you’re supposed to actually provide that service or product. That apparently wasn’t a practice adhered to by two credit card add-on companies that must now pay millions of dollars in fines and refunds. [More]

CFPB Proposes Delay Of New Mortgage Rules By Two Months

CFPB Proposes Delay Of New Mortgage Rules By Two Months

Prospective homebuyers anticipating a more streamlined disclosure process while buying their dream home may have to wait a little longer, as the Consumer Financial Protection Bureau is proposing a delay to new rules. [More]

Here's snippet of the consumer narrative database.

CFPB Publishes More Than 7,700 Detailed Financial Grievances To Public-Facing Database

Sharing your nightmare experience with a financial institution, product or service could help another consumer avoid such dastardly situations. And from the looks of the Consumer Financial Protection Bureau’s new public-facing Consumer Complaint Database, people have a lot to share. [More]