After a recent report alleged that Wells Fargo had charged its auto loan customers for unnecessary and unwanted insurance — resulting in 25,000 repossessed vehicles — the bank now faces a lawsuit from one of those borrowers. [More]
restitution
Wells Fargo Customers Sue Bank Over Alleged Insurance Scheme That Led To Vehicle Repossessions
DeVry Will Pay $2.75M To Settle State’s Allegations Of Misleading Advertising
One month after DeVry Education Group agreed to pay $100 million to settle federal regulatory charges that it used deceptive ads to recruit students, the for-profit educator has come to a multimillion-dollar settlement that should close the book on one state-level investigation. [More]
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]
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]
Online Lender Claiming Tribal Affiliation Must Refund, Cancel $11.6M In Payday Loans
For years, online lenders have claimed affiliations with tribal groups in order to skirt state laws related to short-term, high-interest loans. Today, the state of Minnesota came to a settlement over a years-long, so-called “rent-a-tribe” loan scheme with CashCall, ordering the lender to pay $11.6 million in relief to borrowers. [More]
$5M Credit Card Skimming Scheme Nets Man Seven Years In Jail
A high-ranking member of the largest card-skimming operation in the U.S. will spend the next seven years in prison for his part in a scheme that used ATMs at several national banks to steal $5 million from credit card accounts.
Toyota Must Pay $22M For Charging Higher Interest To Non-White Borrowers
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]
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]
Honda Finance Unit Must Pay $24 Million For Charging Higher Interest To Non-White Borrowers
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 Honda’s financing unit allegedly violated, resulting in thousands of African-American, Hispanic, and Asian and Pacific Islander borrowers paying higher interest rates than white borrowers for their auto loans. Now, as part of a settlement with federal regulators to resolve allegations that the company allowed discriminatory loan pricing, the company must provide $24 million in restitution to borrowers. [More]
Sketchy Retailer Caught Scamming Servicemembers With Pointless Fees
A discount retailer that came under fire last month for its questionable lending and marketing practices received a slap on the wrist from federal regulators for allegedly tricking thousands of servicemembers into paying fees for legal protections they already had and for certain services that the company failed to provide. [More]
DISH Network Will Pay $5.9 Million Back To Customers
In 2006, five states launched an investigation into DISH Network‘s crummy sales practices after hundreds of complaints from consumers. Now the company has agreed to pay $5.9 million to 46 states in a settlement announced today—and at least some of that money is earmarked for DISH customers.