Following reports of more than 1,000 employee injuries, home furnishings retailer Ashley Furniture has agreed to pay $1.75 million to settle numerous allegations by the Occupational Safety and Health Administration.
While debtor prisons have long been outlawed, failure to pay a court-ordered fine or fee can get you locked up. But in a letter sent yesterday to state court administrators, the Department of Justice advises against using the penal system as a way to collect debts. [More]
Under the Equal Credit Opportunity Act, creditors are prohibited from discriminating against loan applicants based on race or national origin. But that was a rule Toyota’s financing unit allegedly violated, resulting in thousands of African-American, Asian and Pacific Islander borrowers paying higher interest rates than their white counterparts. Now, in an effort to resolve charges filed by the Consumer Financial Protection Bureau, Toyota Motor Credit Corporation must pay $21.9 million to wronged consumers. [More]
Shortly after taking over as head of the National Highway Traffic Safety Administration, Mark Rosekind warned carmakers, consumers, and anyone who would listen that 2015 could see more recalls than the recallapalooza that was 2014. Fast forward 12 months, and his prediction has become a reality. [More]
Federal regulators continued an ongoing crackdown on deceptive payday loan players by reaching a multimillion-dollar agreement with two lenders to settle accusations they illegally charged consumers with undisclosed and inflated fees. [More]
CarHop Must Pay $6.4 Million In Penalties For Jeopardizing Consumers’ Credit With Inaccurate Reports
CarHop, one of the country’s largest “buy-here, pay-here” auto dealers, promotes itself as a company that offers fast approval for “just about anyone, despite bad or no credit.” While the company prides itself on the ability to help consumers, federal regulators say the dealer and its financing arm often did more harm than good when it came to reporting on customers’ credit behavior. To that end, CarHop must pay $6.4 million in penalties for providing damaging, inaccurate consumer information to credit reporting agencies (CRAs). [More]
Fiat Chrysler will pay a $70 million fine to federal regulators over allegations it under-reported injuries and deaths related to vehicle crashes. [More]
According to a new report, Wells Fargo is the latest big-name bank to be scrutinized as part of the Consumer Financial Protection Bureau’s ongoing investigation into student loan servicing practices.
Regulators Take Action Against Fifth Third Bank For Auto-Lending Discrimination, Illegal Credit Card Practices
Federal regulators dished out a double dose of enforcement today by taking action against Fifth Third Bank for allegedly charging higher interest rates to minority borrowers for car loans and deceptively marketing credit card add-on products to bank customers. [More]
“Redlining” is the act of denying services, either directly or through selectively raising prices, to residents of a certain area based on race or ethnicity. Federal law prohibits creditors from this type of discrimination, but New Jersey-based Hudson City Savings Bank is now on the hook for a total of nearly $33 million for allegedly providing unequal access to credit in parts of four states. [More]
Can a financial incentive make people change their driving habits? One police department in Pennsylvania is taking a slightly passive-aggressive approach to preventing accidents with signs that remind motorists how stop signs work. “Complete Stops: FREE,” the signs say. “Rolling Stops: $128.50. Your choice.” Police in neighboring towns are interested in the signs now, too. [More]