For the last 10 months, it’s been one of the banking industry’s worst-kept secrets that Wells Fargo’s student loan servicing business was being investigated by federal regulators. Today, the Consumer Financial Protection Bureau confirmed these rumors and ordered Wells to pay more than $4 million in refunds and penalties over allegedly illegal loan servicing practices that increased costs and unfairly penalized certain borrowers. [More]
Nearly a decade after the housing bubble burst and the government created programs to provide relief for homeowners facing foreclosure, the Consumer Financial Protection Bureau is working to ensure that consumers continue to receive needed assistance tailored to changing home retention needs. Today, the Bureau has released new a new outline to guide the creation of new solutions for foreclosure relief. [More]
The fact that two-thirds of college-bound students who take out loans to finance their higher education have little to no idea what they’re agreeing to, doesn’t mean these borrowers shouldn’t receive adequate protection from unscrupulous loan servicing companies. New guidelines from a pair of federal agencies are aimed at ensuring student loan borrowers get the service and protection they deserve. [More]
More than two years ago, the Consumer Financial Protection Bureau enacted rules about the ways mortgage servicers could operate and interact with borrowers, but a new report finds that many of these servicing companies continue to go about (bad) business as usual, using failed technology that has already harmed American homeowners.
Consumer advocates, regulators, and representatives of the small-dollar lending industry descended upon Kansas City on Thursday to discuss the Consumer Financial Protection Bureau’s long-awaited proposed rules intended to rein in predatory lending. [More]
After nearly four years of studying the issue of high-cost, short-term financial products like payday loans, and auto-title loans, the Consumer Financial Protection Bureau has finally released its proposed rules intended to prevent borrowers from falling into the costly revolving debt trap that can leave people worse off than if they hadn’t borrowed money in the first place. [More]
When seeking an infusion of cash to make ends meet, consumers may turn to payday loans, cash advance loans, or auto title loans. While each of these short-term, high-interest loans pose a financial risk to borrowers, only one has the ability to take away what is often a person’s largest asset: their vehicle. And, according to a new report, one-in-five consumers who take out a single-payment auto title loan have their car seized by lenders. [More]
Last October, thousands of unbanked consumers who rely on prepaid RushCards were unable to access their funds because of a technical glitch. After toying with the idea of creating a compensation fund for those customers, RushCard announced Thursday that it will pay at least $19 million to card users affected by the weeks-long outage. [More]
All American Check Cashing collects approximately $1 million in check-cashing fees each year. But according to federal regulators, the company, which also provides payday loans, obtains those fees through deceptive means, including refusing to tell customers what they will be charged and lying to prevent consumers from backing out of transactions. [More]
The typical outsider’s view of payday lending involves seedy looking storefront shops in strip malls near pawn shops and bail bonds, so the idea of going to a short-term lender with a cleanly designed, professional website might seem more appealing (not to mention convenient). However, a new report finds that online payday loans may wreak more financial havoc than their bricks-and-mortar counterparts. [More]
Federal law bars debt relief services from receiving upfront fees before they’ve even renegotiated a single debt for a customer. But one student loan debt relief operation allegedly took in nearly $3.6 million in illegal fees, only to enroll borrowers in programs that are already available for free.
If we’ve said it once, we’ve said it a million time: those who attempt – and often succeed – at scamming senior citizens of their savings are the worst of the worst when it comes to already unsavory, immoral fraudsters. Despite regulators’ attempts to take these operations out of commission, one in five older Americans report being the victims of financial exploitations either by ne’er-do-wells or family members. [More]
While millions of Americans are no strangers to questionable debt-collection practices, a new report from the Consumer Financial Protection Bureau shows that the men and women in the armed forces are twice as likely than their civilian counterparts to file a complaint when a collector crosses the line.
Back in 2013, the Consumer Financial Protection Bureau sued Morgan Drexen, accusing the debt relief company of deceiving customers with promises of reducing their debt and charging illegal upfront fees to do so. Today, the Bureau announced a federal district court approved a final judgement requiring the company to pay $132.8 million in restitution and a $40 million civil penalty. [More]
Faith-based community organizations are among the loudest voices in the battle against predatory lending practices like payday loans. And while most of their efforts are on education and local reforms, a coalition of these groups is thinking nationally, calling on Congress, including the chair of the Democratic National Party, to rethink their support a pro-payday loan piece of legislation. [More]
Last December, the Consumer Financial Protection Bureau filed a lawsuit against Student Loan Processing.US, a debt relief operation, that allegedly reaped millions of dollars from thousands of consumer by promising to provide repayment benefits that come free of charge with federal student loans. Today, the agency took steps to put an end to the organization once and for all. [More]
In recent years, countless private student loan borrowers have found themselves placed in automatic default – even if they were up-to-date on payments – when their co-signer died or filed for bankruptcy. Federal regulators now appear poised to rein in this often devastating practice, warning student loan lenders and servicers that they could soon face enforcement action if they continue the practice. [More]