Deal Provides $480 Million In Debt Relief To Current & Former Corinthian Colleges Students

Deal Provides $480 Million In Debt Relief To Current & Former Corinthian Colleges Students

When student-loan servicing company Educational Credit Management Corporation revealed it would purchase 56 campuses belonging to embattled for-profit college chain Corinthian Colleges, regulators and consumer advocates began working to ensure that students affected by CCI’s collapse would be protected under the deal. Today, the Consumer Financial Protection Bureau and the U.S. Department of Education announced some students would receive the help they deserve in the way of $480 million in debt relief. [More]

(Observe The Banana)

Report: CFPB To Release Rules Governing Payday Loan Industry Soon

Last March, the Consumer Financial Protection Bureau said it was in the “late stages” of crafting rules to rein in the often predatory payday lending industry. Nearly a year, later the agency is reportedly on the cusp of announcing said rules. [More]

(Bill Bradford)

CFPB Proposal Aims To Improve Mortgage Access In Rural & Underserved Areas

A new proposal issued by the Consumer Financial Protection Bureau this week aims to make it easier for consumers in rural and underserved areas of the United State to obtain mortgages. [More]

(Morgan)

Proposed Scorecard Could Help Protect Students From Dangerous Banking Products

For the past several years, federal agencies, lawmakers and consumer advocates have shared their displeasure with the rather cozy relationship between the financial industry and higher education institutions and set out to protect consumers from the often shady deals made between the two groups. Now the Consumer Financial Protection Bureau is setting out to protect students by creating a scorecard that would help ensure colleges have all the pertinent details when it comes to partnering with financial institutions that offer checking and prepaid accounts to students. [More]

Nearly half of all consumers didn't shop around before applying for a mortgage.

Many Homebuyers Spend More Time Shopping For A TV Than Looking For The Right Mortgage

Potential homeowners might spend months nitpicking and fretting over the features of a seemingly endless series of houses they could buy, but a new report from the Consumer Financial Protection Bureau claims that half of American homebuyers aren’t taking the same care when it comes to shopping around for the right mortgage, often putting themselves in precarious lending situations and missing out on savings. [More]

(Hammerin Man)

CFPB Urges DoD To Close Loopholes That Cost Military Personnel Millions Of Dollars

Nearly three months ago the Obama administration and the Department of Defense announced a proposed overhaul of the Military Lending Act that would aim to close loopholes regularly exploited by predatory lenders in order to sink their hooks into military borrowers. Now, a new report from the Consumer Financial Protection Bureau highlights just how devastating – and costly – those loopholes can be for servicemembers. [More]

The CFPB, along with AGs from Virginia and North Carolina took action against Freedom Furniture & Electronics and its related companies for alleged illegal debt collection practices involving servicemembers.

CFPB: Retailer Allegedly Using Illegal Debt Collection Practices Against Servicemembers Must Refund $2.5M

The Consumer Financial Protection Bureau continues its fight against companies that continuously take advantage of members of the military, despite protections afforded to them under federal laws. Regulators’ latest victory? A settlement demanding over $2.5 million in consumer relief from three companies that allegedly used illegal tactics to pilfer money from servicemembers and their families. [More]

(northernplateguy)

CFPB Suit: Texas Company Charged Consumers Millions In Fees For Credit Card They Couldn’t Use

Credit cards, while often a risky financial product, can at times prove to be a proverbial lifesaver when you get into a pinch. For that reason, most consumers who apply for a card envision using it as a valid form of payment for any number of reasons. While a Texas-based company marketed their credit card as general-use, consumers quickly found out that wasn’t actually the case. And so, the Consumer Financial Protection Bureau has filed suit against the company for its allegedly deceptive ways. [More]

(Adam Fagen)

CFPB Takes Action Against Two Alleged Student Debt Relief Scams

Student loan borrowers have enough to worry about, so they shouldn’t have to deal with being hounded by so-called debt relief companies promising to provide consumers with repayment benefits that actually come free of charge with federal loans. Today, the Consumer Financial Protection Bureau took action to put a stop to two such relief scams that reaped millions of dollars from thousands of consumers. [More]

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Consumer Advocates Shine Spotlight On Too-Common Credit Reporting Errors

By now we know that credit reporting agencies are notoriously difficult to work with when it comes to fixing errors on one’s credit report. While legislators and consumers groups have long called upon credit reporting agencies to provide better service to disputing customers, little has been done to actually affect change. Now, advocates with Consumers Union are putting the spotlight on how devastating these errors can be for consumers. [More]

New DoD Protections Aim To Keep Shady Businesses From Taking Advantage of Military Members

New DoD Protections Aim To Keep Shady Businesses From Taking Advantage of Military Members

Members of the military — particularly younger members from lower-income backgrounds — are too often the target of shady, predatory businesses looking to take advantage of their youth and inexperience with finances. The Military Lending Act offers some protections, but these operators find ways to get around the law. On Friday, the U.S. Dept. of Defense took steps to eliminate some of those exploitations by creating reforms to the current military discretionary allotment system. [More]

(jetsetpress)

CFPB Proposes Rules To Protect Consumers From Shoddy Foreclosure Practices

Since the recession began in the late 2000s, many homeowners have struggled to keep their homes, often fighting off aggressive and shady foreclosure attempts. Over the years, consumers groups have fought to extend protections for these consumers. On Thursday, the Consumer Financial Protection Bureau took steps to ensure that homeowners and struggling borrowers are treated fairly by mortgage servicers. [More]

(Misfit Photographer)

CFPB Orders ‘Buy-Here, Pay-Here’ Auto Dealer DriveTime To Pay $8M Penalty For Unfair Debt Collection Practices

For the first time in its existence the Consumer Financial Protection Bureau took action against a so-called “buy-here, pay-here” vehicle dealer, ordering the company to pay $8 million and fix its egregious ways. [More]

(Great Beyond)

CFPB: Mortgage Lender Must Refund Consumers $730,000 for Steering Them Into Costlier Mortgages

Taking out an expensive loan is often the only option when it comes to financing a new home. And while most prospective home buyers might expect their mortgage lender to find them the best deal, that isn’t always the case. Take for example a California-based mortgage lender being ordered to provide $730,000 in consumer redress for an illegal compensation system that offered bonuses to employees for steering borrowers into higher interest loans. [More]

(Newton Free Library)

Treasury Dept. Urges Student Loan Servicers To Do A Better Job, Try Incentives

Hot of the heels of a report from the Consumer Financial Protection Bureau detailing how loan servicers trick consumers into paying more, top officials with the Department of Treasury implored the industry to fix their often nefarious ways. [More]

Older Americans report facing several issues when it comes to interactions with debt collectors.

CFPB Finds Older Consumers Face Illegal, Harassing Tactics From Debt Collectors

As if we hadn’t said it enough, but debt collectors are the worst, especially when they use illegal tactics to pry money from older American’s living on fixed incomes. A new report from the Consumer Financial Protection Bureau shines light on the issues older consumers face when it comes to their financial well-being. [More]

(darrenleno)

Student Loan Servicers Tricked Borrowers Into Paying More, Made Illegal Collection Calls

As if student loan borrowers needed more bad news, the Consumer Financial Protection Bureau released a report this week detailing how some student loan servicers have tricked consumers into paying higher fees and misrepresented balances due. [More]

Banks Can Stop Wasting Stamps; Can Post Privacy Disclosures Online Instead

Banks Can Stop Wasting Stamps; Can Post Privacy Disclosures Online Instead

Customers of some banks may be receiving one less communication by mail following the Consumer Financial Protection Bureau’s finalization of a rule to promote more effective privacy disclosures. Translation: some banks can post their privacy notices online rather than slapping a stamp on them. [More]