Read the latest on the Consumer Financial Protection Bureau (CFPB).
- Overdraft Services Need Greater Oversight
American Banker 14 Oct 2013
Overdraft service, once an occasional courtesy provided to bank customers, is now a high-cost service that pushes many consumers out of the banking system completely, writes Susan Weinstock of The Pew Charitable Trusts. The penalties when customers spend more than what is in their account average $225 per year, she reports.
- CFPB Takes Aggressive Action Against HMDA Violators
American Banker 10 Oct 2013
The Consumer Financial Protection Bureau (CFPB) on Oct. 9 penalized two non-bank mortgage lenders for reporting erroneous data to regulators.
- Is the Death Knell Sounding for Payday Lenders?
ConsumerAffairs.com (CA) 07 Oct 2013
Consumer advocates and regulators have long complained about the payday loan industry, saying that the small loans -- which carry high fees and often must be repaid in full in about two weeks -- trap borrowers in a cycle of debt. The Center for Responsible Lending (CRL) has been lobbying to curb the business on a national level, and it believes a sea change is underway.
- Consumer Agency Fines Payment Processor Meracord Over Debt-Relief Firms' Illegal Fees
Washington Post 04 Oct 2013
The Consumer Financial Protection Bureau (CFPB) has fined Meracord, one of the country's largest payment-processing companies, $1.3 million for helping debt-relief firms levy illegal upfront fees on struggling consumers. According to the regulator, Meracord processed at least $11 million in illicit fees from October 2010 to July of this year. Of more than 11,000 consumers who paid the upfront charges, almost 5,000 of them did not have any of their debts resolved.
- CFPB Should Take Tougher Stance Against Credit Cards, Consumer Groups Say
American Banker 03 Oct 2013
Consumer advocates have asked that the Consumer Financial Protection Bureau (CFPB) take an even harder line with credit card issuers. At a field hearing in Chicago after the watchdog released its study on the impact of card regulations over the last four years, advocates urged the regulator not to leave its scrutiny at simply sneaky rate hikes and fees but to delve deeper into legal disclosures.
- Lenders Warn Dealers About Bias
Automotive News 02 Oct 2013
Auto lenders have been sending letters to dealerships to inform them that many of their practices suggest a pattern of discrimination against minorities, women, or the elderly.
- Bank Credit-Card Fees Face New Scrutiny by U.S. Consumer Bureau
Bloomberg 02 Oct 2013
The Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 limited lenders' ability to hike interest rates, curtailed late fees, and forced lenders to obtain customers' consent to apply over-limit fees. The law produced $4 billion in savings to U.S. consumers last year through these impacts, according to the Consumer Financial Protection Bureau (CFPB), which calculated that the total cost of credit on the cards is down by two percentage points.
- Officials Launch Review of Debit Cards at College
Boston Globe 30 Sep 2013
The distribution of financial aid to students via debit cards has grabbed the attention of federal officials and lawmakers concerned that students are unaware of the fees associated with the cards.
- CFPB Rejects Bid by Tribal Online Lenders to Block Probe
Bloomberg 26 Sep 2013
Three Native American online lenders, claiming that the Consumer Financial Protection Bureau has no authority over them, have lost their bid to terminate an investigation against them for possible abuses of consumers.
- States Sharpen Payday-Loan Scrutiny
Wall Street Journal 26 Sep 2013
State regulators are trying to rein in payday loans by pressuring lenders to submit customer information to state databases. Alabama became the most recent state to call for a database, following similar proposals in California, Pennsylvania, and other areas.
- Regulators Tell Banks That Reporting Elder Abuse Doesn't Violate Privacy Laws
Cleveland Plain Dealer 24 Sep 2013
The Consumer Financial Protection Bureau, along with half a dozen other federal regulators, issued guidelines on Sept. 24 reaffirming that reporting suspected financial abuse is not a breach of privacy laws.
- Big Banks, Big Complaints: CFPB’s Database Reveals Trends
The Financial Brand 24 Sep 2013
U.S. consumers have lodged almost 19,000 gripes against banks and credit unions since the creation of the Consumer Financial Protection Bureau’s public Consumer Complaints Database.
- CFPB Takes Aim at Sallie Mae for Student Loan Servicing
Huffington Post 24 Sep 2013
The Consumer Financial Protection Bureau (CFPB) is criticizing the Department of Education’s preferred companies for servicing its $1 trillion in student loans, underscoring potentially poor customer service.
- CFPB Leader Not Backing Down on Lending Discrimination Cases
Housing Wire 24 Sep 2013
Without intervention by the U.S. Supreme Court, the Consumer Financial Protection Bureau (CFPB) will continue to hold up disparate impact as the appropriate legal theory to use in filing lending bias cases against banks.
- Chase Scraps Joint Credit Cards
CNN Money 24 Sep 2013
In a move likely to be copied by other banks, Chase has announced it will no longer allow customers to open joint credit cards -- a popular option for couples sharing the responsibility of repayment.
- Jackson, Miss. Puts Resident on Direct Dial to CFPB
Reverse Mortgage Daily 22 Sep 2013
Jackson, Miss., has become the second city to launch a direct phone partnership with the Consumer Financial Protection Bureau (CFPB).
- Regulator Bars Employers From Requiring Pay on Debit Cards
Wall Street Journal 18 Sep 2013
The Consumer Financial Protection Bureau (CFPB) said Thursday that employers cannot require that workers receive paychecks on debit cards, and that employees must be given other options. The cards have been lambasted by consumer advocates, New York's attorney general, and U.S. lawmakers.
- Cordray Says Lenders Ready for Compliance With Mortgage Rule
Bloomberg 17 Sep 2013
Cordray Says Lenders Ready for Compliance With Mortgage Rule
- Americans Agree on Regulating Wall Street
U.S. News & World Report 17 Sep 2013
On the fifth anniversary of the financial meltdown, the Center for Responsible Lending and Americans for Financial Reform jointly released the results of a nationwide survey of likely voters conducted earlier this summer by Lake Research Partners.
- Capital One to Refund $150 Million to Credit Card Customers
Los Angeles Times 18 Jul 2012
In the Consumer Financial Protection Bureau's first major enforcement action since the agency went live last July, it has ordered Capital One Bank to refund $140 million to credit card consumers for questionable marketing of add-on products. At the same time, the federal Office of the Comptroller of the Currency hit Capital One with its own $10 million consent order tied to unfair billing practices from May 2002 to June 2011, for total refunds of $150 million. Additionally, Capital One must pay $60 million combined in civil penalties for the practices. CFPB director Richard Cordray said the bank's call center operators tricked customers with low credit scores or credit limits into buying "products they didn't understand, didn't want, or in some cases, couldn't even use" -- such as payment protection and credit monitoring -- when they activated their credit cards. As part of the consent orders, Capital One has agreed to refund the full amount of add-on products, plus interest, to customers who enrolled in them or tried unsuccessfully to cancel them on or after Aug. 1, 2010. Finance charges and other associated fees will be refunded as well. "We are putting companies on notice that these deceptive practices are against the law and will not be tolerated," Cordray declared.