consumer financial protection bureau

Experian Fined $3M, Accused Of Misleading Consumers About Usefulness Of Credit Scores

Experian Fined $3M, Accused Of Misleading Consumers About Usefulness Of Credit Scores

Two months after federal regulators fined two of the nation’s largest credit reporting agencies — Equifax and TransUnion — $23 million for misleading consumers about the cost and usefulness of credit monitoring services, the Consumer Financial Protection Bureau has announced a $3 million settlement with Experian over allegations that the credit agency misled consumers about the usefulness of the credit scores available for purchase. [More]

Adam Fagen

White House Wants Authority To Fire Consumer Protection Chief

While the heads of most federal agencies have been replaced since the new administration moved into the White House, Richard Cordray remains Director of the Consumer Financial Protection Bureau. That’s because President Trump currently can’t fire him without having to first show cause — a requirement the White House wants to get rid of. [More]

Jeff

More Than 1.1M Federal Student Loan Borrowers Entered Default Last Year

With the cost of college tuition continuing to increase, it likely comes as no surprise that more borrowers are finding themselves in default. In 2016 alone, 1.1 million borrowers entered default for their federal student loans.  [More]

(Jim Perry)

Court: CFPB Has Authority To Request Seven Years’ Worth Of Foreclosure Documents

Back in November, the Consumer Financial Protection Bureau filed a lawsuit against one of the nation’s largest providers of seller-financed homes after it failed to comply with a subpoena to turn over documents related to home foreclosures. This week, a judge upheld the Bureau’s authority to request the documents from Harbour Portfolio Advisors.  [More]

Adam Fagen

Appeals Court Will Rehear Case Involving Constitutionality Of Consumer Financial Protection Bureau

Four months after a three-judge panel issued a 2-1 ruling that the structure of the Consumer Financial Protection Bureau is unconstitutional, the full Court of Appeals for the D.C. Circuit has agreed to rehear the issue. [More]

Adam Fagen

Lawmakers Introduce Legislation That Would Abolish The CFPB

The future of the Consumer Financial Protection Bureau continues to remain in question with yet another attack being lobbed at the Bureau this week as lawmakers introduced new legislation both in the House and Senate that would abolish the agency. [More]

Adam Fagen

Bank-Backed Congressman Introducing Law To Gut Consumer Financial Protections

Less than a week after President Trump signed a mostly symbolic executive order directing federal regulators to revise the rules established by the 2010 financial reforms, one lawmaker (whose campaign just happens to have been heavily financed by big banks) is planning to introduce legislation to scale back consumer protections and allow banks to take more risks. [More]

Legal Fund Accused Of Deceiving 9/11 First Responders & NFL Players Out Of Settlement Payments

Legal Fund Accused Of Deceiving 9/11 First Responders & NFL Players Out Of Settlement Payments

The Consumer Financial Protection Bureau and the state of New York have accused a New Jersey company of defrauding customers — including Sept. 11 first responders and former NFL players suffering from long-term brain injuries — into signing away millions of dollars in settlement payouts. [More]

Patrick Fagen

Congress Trying To Roll Back Consumer Protections For Prepaid Cards

Last fall, weeks before the election, the Consumer Financial Protection Bureau concluded a three-year process of trying to make prepaid cards less costly. Those new rules, which would improve transparency and curb runaway fees, are set to go into effect later this year, but not if lawmakers on Capitol Hill have their say.  [More]

Feds Order MasterCard, RushCard Owner To Pay $13M Over Oct. 2015 Outages

Feds Order MasterCard, RushCard Owner To Pay $13M Over Oct. 2015 Outages

Nearly 15 months after tens of thousands of users of the prepaid RushCard were cut off from their funds because of an apparent technical glitch, the company behind the card, UniRush and its payment processor MasterCard have been ordered to pay $13 million in refunds and penalties. [More]

Lenders, Real Estate Brokers To Pay More Than $5M For Alleged Kickback Scheme

Lenders, Real Estate Brokers To Pay More Than $5M For Alleged Kickback Scheme

The home buying process is complicated and expensive enough without mortgage servicers and real estate brokers tacking on illegal and costly fees. To that end, the Consumer Financial Protection Bureau has ordered Prospect Mortgage and three other companies to pay more than $5 million to settle allegations they participated in an illegal kickback scheme.  [More]

Feds Sue Debt Relief Law Firm For Charging Customers Illegal Fees

Feds Sue Debt Relief Law Firm For Charging Customers Illegal Fees

Nearly four years ago, federal regulators shut down a debt relief company — Morgan Drexen — accused of deceiving customers with promises of reducing their debt and charging illegal upfront fees to do so. While that company eventually paid $170 million to resolve the allegations, the Consumer Financial Protection Bureau Monday sued a related company using the same playbook.  [More]

CitiFinancial, CitiMortgage To Pay $28.8M Over Mortgage Servicing Issues

CitiFinancial, CitiMortgage To Pay $28.8M Over Mortgage Servicing Issues

Millions of consumers lost their homes when the housing market bubble burst. But federal regulators say some of those people may have been able to stay in their homes had mortgage lenders fulfilled their requirements. To that end, the Consumer Financial Protection Bureau has ordered two Citigroup subsidiaries to pay $28.8 million to resolve allegations that some of its mortgage units harmed home borrowers.  [More]

Student Loan Giant Navient Sued By CFPB & Two States Over Alleged Illegal Practices

Student Loan Giant Navient Sued By CFPB & Two States Over Alleged Illegal Practices

Eighteen months after Sallie Mae spin-off Navient revealed that its wholly-owned subsidiary Navient Solutions Inc could one day be on the receiving end of a federal lawsuit related to its student loans servicing practices, the day has come to pass. The Consumer Financial Protection Bureau, along with two states, filed lawsuits against the nation’s largest student loan company for allegedly cheating borrowers out of repayment rights.  [More]

MeneerDijk

Medical Debt Collection Firms Must Refund $577K For Threatening Consumers

In this latest episode of Debt Collectors Behaving Badly, we bring you the tale of two medical debt collection law firms who must now refund hundreds of thousands of dollars after they were caught falsely claiming that attorneys were involved in collection actions. [More]

PROMY PINK SOAPBOX

Student Loan Servicing Issues Contribute To Older Borrowers’ Defaults

In 2015, nearly 40% of all federal student loan borrowers over the age of 65 were in default, thanks in part to issues they faced when it came to the servicing of their debts, including problems enrolling in income-driven repayment plans and accessing protections as co-signers.  [More]

James Callan

Retailers Ask Congress To Please Not Roll Back Dodd-Frank Debit Card Reforms

Both the banking industry and conservative lawmakers are hoping that the incoming Trump administration will agree to repeal the 2010 Dodd-Frank Financial Reforms, but many in the retail world are calling on Congress to retain at least the portion of the law involving debit card transactions. [More]

Chris Blakeley

Equifax, TransUnion To Pay $23M For Misleading Consumers About Credit Monitoring

The nation’s three largest credit reporting agencies — TransUnion, Equifax, and Experian — not only collect consumers’ financial information to assist lenders in gauging whether or not someone is qualified for a loan, fit for a job, or can afford a place to live, they also provide people with credit-related products and resources that are meant to help them keep tabs on or improve their credit. But, according to federal regulators, Equifax and TransUnion haven’t been upfront about the costs and usefulness of these products, and now they’re on the hook for a total $23.1 million in fines and refunds.  [More]