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Payday Lenders Go To Court In Attempt To Keep Working With Banks

The payday lending industry claims that recent regulatory efforts to rein in short-term, high-interest loans have severely restricted their access to traditional banks. Now a trade organization representing the controversial lenders has asked for a federal court to intervene. [More]

Adam Fagen

Consumer Financial Protection Bureau Challenges Ruling That Its Structure Is Unconstitutional

Last month, a split three-judge panel of the D.C. Circuit Court of Appeals ruled that the structure of the Consumer Financial Protection Bureau is unconstitutional as it puts too much authority in the hands of one person. Now the CFPB is challenging that ruling, petitioning for a review of the matter by the full D.C. Circuit, in what the Bureau claims “may be the most important separation-of-powers case in a generation.” [More]

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Feds Go After Pawnbroker For Misleading Costs On Auto-Title Loans

Pawnbrokers offer cash-strapped consumers an avenue to acquire quick cash in exchange for holding possession of their valuables, sometimes stepping into the world of such things as auto-title loans. One such company is now facing the ire of federal regulators for allegedly deceiving customers about the cost of its loans.  [More]

Jeff

Some Student Loan Borrowers Improperly Denied Payment Assistance

Each year, more than five million student loan borrowers are better able to manage their debts thanks in part to government-based loan repayment plans. But yet another report has found that not all students qualified to participate in these income-driven repayment plans are able to, though at no fault of their own.  [More]

Adam Fagen

Last week, a split federal appeals panel ruled that the structure of the Consumer Financial Protection Bureau is unconstitutional because the Bureau’s sole Director can not be removed from office at the whim of the President. While the CFPB has yet to appeal this decision, a filing in a separate lawsuit provides a preview of the argument the Bureau could eventually make to try to overturn the ruling. [More]

Navy Federal Credit Union Ordered To Pay $28.5M Over Bad Debt Collection Practices

Navy Federal Credit Union Ordered To Pay $28.5M Over Bad Debt Collection Practices

Navy Federal Credit Union offers customers — current and former military servicemembers and their families — a wide range of financial products and services, including loans that must be repaid. But when those customers fell behind on those payments, federal regulators allege that NFCU illegally threatened borrowers and restricted access to their accounts. To resolve these allegations, the company must now pay $28.5 million in refunds and penalties. [More]

Patrick Fagan

Two years after the Consumer Financial Protection Bureau first proposed rules aimed at making prepaid cards safer and less costly for the 24 million unbanked consumers who make use of these sometimes costly and fee-laden financial products, the agency is releasing the final version of the rules that will kick in a year from now.  [More]

Short-Term Loan Startup LendUp Ordered To Pay $3.6M Over Alleged Lending Violations

Short-Term Loan Startup LendUp Ordered To Pay $3.6M Over Alleged Lending Violations

When a company promises to lend you money and rebuild your credit — all through your phone — it can be hard to pass up the offer, especially when you’re in a pinch. But what happens when that lender doesn’t deliver? It gets fined millions of dollars by the federal government, or at least that’s the case for online lender LendUp. [More]

moxythecat

Feds Fine TitleMax, TitleBucks Parent Company $9M Over Alleged Illegal Loan Practices

The terms and conditions for short-term, high-cost loans can often be confusing, making it difficult to decipher just how much a borrower will spend to repay an initial loan. That was apparently the case for TMX Finance, the company behind TitleMax, as federal regulators fined the company $9 million for allegedly luring consumers into costly loan renewals by presenting them with misleading information about monthly plans.  [More]

Chris Blakeley

Credit Repair Service Accused Of Misleading Customers, Charging Illegal Fees

It can take years, decades even, to repair one’s credit. Unfortunately, there is no quick fix, despite promises of relief from companies offering their services for a price. Today, the Consumer Financial Protection Bureau sued one such company, Prime Marketing Holdings, for allegedly misleading consumers and charging illegal fees.  [More]

Stephan De Witte

Feds Sue Five Arizona Title Lenders For Failing To Provide Annual Percentage Rates On Ads

When taking out a loan or similar cash infusion that has to be repaid over time, it’s important — and required — that lenders provide borrowers with the annual interest rate they’ll be paying before the debt obligation is resolved. Today, federal regulators announced it sued five auto title loans companies for failing to provide that information to consumers in advertisements.  [More]

For-Profit College Operator Bridgepoint Agrees To Forgive $23.5M In Student Loans

For-Profit College Operator Bridgepoint Agrees To Forgive $23.5M In Student Loans

Two months after Bridgepoint Education, the operator of for-profit colleges Ashford University and the University of the Rockies, revealed it was being investigated by the Department of Justice over its federal student aid funding, another federal agency has ordered the company to forgive $23 million in student loans and pay an $8 million penalty over allegedly illegal student lending practices.  [More]

Mike Mozart

Wells Fargo Must Pay $4M Over Allegedly Illegal Student Loan Servicing

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]

Great Beyond

Guidelines Intend To Protect Homeowners As Foreclosure Relief Programs Expire

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]

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New Guidelines Aim To Improve Customer Service, Enhance Protections On Federal Student Loans

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]