The CFPB found 82% of loans are 
renewed within fourteen days, and this percentage varies by only three percentage points across 
the three groups of states.

4 Out Of 5 Payday Loans Are Made To Consumers Caught In Debt Trap

The revolving door that is the payday lending debt trap is real. The high-interest, short-term loans may even be more damaging to consumers that previously thought. Four out of five payday loans are rolled over or renewed every 14 days by borrowers who end up paying more in fees than the amount of their original loan, a new Consumer Financial Protection Bureau report finds. [More]

Most Debt Collector Complaints Made By Consumers Being Hounded For Money They Don’t Owe

Most Debt Collector Complaints Made By Consumers Being Hounded For Money They Don’t Owe

We’re not sure how many times we’ve said it, but it’s worth repeating: Debt collectors are the worst. It’s not just that they’re often rude and occasionally violate the law. What really puts collection agencies at the bottom of the barrel is the fact that they consistently go after debt that consumers simply don’t owe. [More]

States’ Attempts To Reform Payday Lending Are Often Just Smoke & Mirrors

States’ Attempts To Reform Payday Lending Are Often Just Smoke & Mirrors

Payday lending has been getting a makeover of sorts recently. A number of banks, including Wells Fargo, have discontinued their payday-like direct deposit advance programs after federal regulators tightened their guidance over the high-cost products. Now, a number of state legislatures are discussing payday lending reform bills, which they say will make short-term loans safer for consumers. But are they truly helpful to those who need them? Not quite, say consumer advocates. [More]

Prepaid Debit Cards: Salvation From Overdraft Fees Or Putting Your Money At Risk?

Prepaid Debit Cards: Salvation From Overdraft Fees Or Putting Your Money At Risk?

No overdraft penalties, no overspending and sometime low but occasionally ridiculous fees are all perks that have led consumers to an increased use of prepaid debit cards in the last year. And while the cards are convenient there are plenty of reasons consumers should by wary. [More]

CFPB Alleges Mortgage Insurer Operated 15-Year-Long Kickback Scheme

CFPB Alleges Mortgage Insurer Operated 15-Year-Long Kickback Scheme

The Consumer Financial Protection Bureau has begun proceedings against PHH Corporation for its involvement in a 15-year-long mortgage insurance kickback scheme that collected hundreds of millions of dollars from homeowners. [More]

New Rule Requiring Banks To Make Sure Borrowers Can Actually Repay Mortgages Goes Into Effect This Week

New Rule Requiring Banks To Make Sure Borrowers Can Actually Repay Mortgages Goes Into Effect This Week

Want a mortgage? Go for it! But thanks to new rules from the Consumer Financial Protection Bureau, the banks are going to need some proof first that you can actually, you know, pay it back. [More]

(thisisbossi)

CFPB: Many Of The 33 Million American Workers Eligible For Loan Forgiveness Aren’t Using It

Are you working in a job that serves other Americans — in a school, hospital, city hall perhaps — while living saddled with student loan debt? You could be part of the more than 33 million workers eligible to have student loans forgiven, a large number of which aren’t even aware they can do so. The Consumer Financial Protection Bureau says loan forgiveness program are too confusing for many to take advantage of, leading to a large number of wasted opportunities. [More]

(frankieleon.)

Are Prepaid Cards Improving Or Are They Still A Confusing Mess Of Hidden Fees?

First, the good news: Our wiser, elder siblings at Consumer Reports have ranked the best and worst prepaid cards for the very first time, and it seems many cards have lower fees and act a lot like traditional bank accounts. But now for the bad news: Fee information can still be tricky to find and many cards don’t come with the guarantees you can get with a regular debit card. [More]

Get your party hats on, CFPB.

Senate Finally Confirms Richard Cordray As CFPB Director

Pop the bubbly and take a deep breath of relief, Richard Cordray. The Senate finally reconfirmed Cordray today as the director of the Consumer Financial Protection Bureau, a post he’s held since the bureau’s creation in January 2012. It’s about dang time, as the vote had been idling along in light of a stalemate among some lawmakers who wanted changes to be made to the CFPB first before any nominee was even considered. [More]

CFPB's Richard Cordray

Survey Says: 74% Of Consumers Support Approving A CFPB Director

This week the Senate is preparing to vote on whether or not to confirm Richard Cordray as Director of the Consumer Financial Protection Bureau, something that’s not a shock considering he’s been overseeing the bureau for the entirety of its existence, since January 2012. And while there has been some pushback against his confirmation, a survey from the Consumer Reports National Research Center shows 74% of consumers support the approval of a director. [More]

(frankieleon)

CFPB: Bank Customers Leaking $225 In Overdraft Fees Per Year On Average

Why is your bank account leaking so much money ever year? Where does it all go? Checking account customers are bleeding funds to the tune of about $225 per year on average, the Consumer Financial Protection Bureau says in a new study. That means that despite regulations aimed at lessening the effects of overdraft fees and clear up the whole process. [More]

(frankieleon)

CFPB’s First Criminal Referral Leads To U.S. Indicting Debt-Repair Firm For Defrauding 1,200

In the first criminal referral from the Consumer Financial Protection Bureau, the U.S. is coming out swinging against a debt-settlement company in a new indictment. The firm has been charged with defrauding more than 1,200 people struggling with credit-card debt, with prosecutors saying the defendants “systematically exploited and defrauded” people around the U.S. [More]

Senate Panel Gives Thumbs-Up To Confirming CFPB Director Cordray

Senate Panel Gives Thumbs-Up To Confirming CFPB Director Cordray

Consumer Financial Protection Bureau director Richard Cordray moved one step closer to sticking around as the young agency’s head this morning, with the Senate Banking Committee narrowly giving its approval to his confirmation. [More]

CFPB Director Richard Cordray.

CFPB Director Cordray To Make His Case For Another Term Tomorrow

A little more than a year after taking the reins as the first Director of the Consumer Financial Protection Bureau, Richard Cordray will be appearing tomorrow before the Senate Banking Committee to answer questions and make his case for another term at the Bureau’s helm. [More]

Keep on keepin' on, Cordray.

Richard Cordray Re-Nominated To Head Consumer Financial Protection Bureau

Ever since Richard Cordray was appointed head of the very first Consumer Financial Protection Bureau back in January 2012, he’s rolled up his sleeves as the director and dug into the task of making the financial industry less confusing to consumers. He and the CFPB have addressed credit card companies, credit bureaus, debt collectors, mortgage applications, big banks and their myriad of fees and all matter of consumer complaints. And now he gets to do it again this year! [More]

(afagen)

CFPB Warns Specialty Credit Reporting Agencies: You’ve Gotta Issue Free Annual Reports, Too

Oh, hey, specialty credit reporting companies. Whatcha doing? Just hanging out? That’s great. Listen, just an FYI, you need to be issuing free credit reports to your customers, too. Nope, it’s not just the three largest credit reporting companies, you’re all in the same boat. Our pals at the Consumer Financial Protection Bureau are here to remind you, in case you’d conveniently forgotten. [More]

CFPB Devises New Simple Forms For Mortgages That Won't Boggle Your Eyeballs

CFPB Devises New Simple Forms For Mortgages That Won't Boggle Your Eyeballs

If mortgage disclosure forms actually told homeowners exactly what they were getting into, in the simplest of terms, perhaps everyone could catch a break — from the lenders to the often confused consumers who have to deal with the current system and its four complicated documents from two separate government agencies. The Consumer Financial Protection Bureau is on the march once again, and this time its director Richard Cordray is proposing one simple mortgage disclosure form. [More]