Read the latest on the Consumer Financial Protection Bureau (CFPB).
- CFPB Warns of Crackdown If Credit-Report Errors Aren't Fixed
Wall Street Journal 05 Sep 2013
The Consumer Financial Protection Bureau (CFPB) on Sept. 4 put financial firms on notice that they need to improve their responses to disputes over credit reports. The agency said lenders and debt collectors must conduct a thorough review of documents submitted by consumers to challenge any mistakes and disclose any errors to credit reporting firms
- More Banks Could Face Scrutiny Over Foreclosure Billing Practices
American Banker 28 Aug 2013
Federal and state regulators are more closely scrutinizing the practice of padding foreclosure expenses, warning mortgage servicers that they are liable for ensuring that fees charged by lawyers and third-party vendors are reasonable and accurate.
- Consumer Bureau: Too Few Use Loan Forgiveness
Associated Press 28 Aug 2013
More than 33 million U.S. workers qualify for student loan forgiveness because they work in public service fields. "We estimate that one in four working Americans has a job that meets the definition of public service under this program," confirmed Consumer Financial Protection Bureau director Richard Cordray.
- CFPB Slams Mortgage Servicers Over 'Sloppy' Tactics
American Banker 22 Aug 2013
Mortgage servicing issues persist, despite a renewed focus on these problems in the wake of the foreclosure crisis, finds a report issued Aug. 21 by the Consumer Financial Protection Bureau. Based on exams conducted between November and June, the agency specifically cited "sloppy" and "poor" practices related to mortgage transfers, payment processing, and loss mitigation procedures.
- U.S. Consumer Bureau Files Lawsuit Against Nevada Debt-Relief Firm
Reuters 20 Aug 2013
The U.S. Consumer Financial Protection Bureau is taking Morgan Drexen, a Nevada-based debt settlement company, to court for allegedly imposing improper fees and misleading the public about its services.
- CFPB Updates Exam Guide for QM, Mortgage Rules
American Banker 16 Aug 2013
The Consumer Financial Protection Bureau on Aug. 15 issued updated exam procedures for a number of mortgage rules set to take effect next year. The interim exam procedures cover far more details and rules related to mortgages than when the agency released its first round of exam guidance in June.
- Auto-Title Lenders Peel Into Ohio
Cleveland Plain Dealer (OH) 16 Aug 2013
TMX Finance, the biggest auto title lender in the country, is expanding into Ohio, where it plans to open 12 outlets. Payday loans were officially banned there in 2008, but the state unofficially allowed the lenders to continue. Car title lending is not specifically sanctioned; but, like with the payday lending industry, there are loopholes that allow them to operate under other statutes.
- Many Can't Pay Student Loans
Wall Street Journal 06 Aug 2013
About 40 percent of borrowers with direct federal student loans are repaying them, according to a new report by the Consumer Financial Protection Bureau that offers the first comprehensive snapshot of the lending program since the government created it in 2010.
- Watchdog's Complaint Tracking Gets Results
USA Today 05 Aug 2013
The Consumer Financial Protection Bureau's growing database of financial services complaints could help consumers rule out companies that show up too often, but CFPB director Richard Cordray believes other factors should be considered as well.
- Consumer Protection Chief Puts Focus on Student Loans
USA Today 05 Aug 2013
U.S. Consumer Financial Protection Bureau (CFPB) director Richard Cordray says the agency is trying to improve consumer decision-making on student loans. It has fielded 2,000 complaints related to private student loans just from Oct. 1, 2012 through March 31, 2013.
- Blog: Over a Million Are Denied Bank Accounts for Past Errors
New York Times 30 Jul 2013
Institutions like Bank of America, Citibank, and Wells Fargo insist that the use of databases that record individuals' banking mistakes, such as bounced checks or minor overdrafts, help them weed out risky customers and fight fraud.
- What CFPB Crackdown on Utah Lender Means for Loan Officer Compensation
American Banker 30 Jul 2013
The Consumer Financial Protection Bureau (CFPB) has filed a federal complaint against Salt Lake City-based mortgage bank Castle & Cooke Mortgage for allegedly paying quarterly bonuses to loan originators who directed borrowers into higher-cost loans but lacked a written policy describing the bonuses, as required by new loan compensation rules
- U.S. Regulators Moving Cautiously on Mortgage Reforms
Reuters 29 Jul 2013
U.S. bank regulators are carefully crafting various rules to put a stop to reckless underwriting and other mortgage market abuses, claiming they are cognizant of arguments from an alliance of both banks and consumer groups that excessively strict regulations could hinder credit availability.
- Wells Fargo Halts Card Debt Sales as Scrutiny Mounts
American Banker 29 Jul 2013
Wells Fargo reportedly has ceased sales of its customers' unpaid consumer loans to third-party debt collection agencies. The bank's move follows JPMorgan Chase's more drastic decision to freeze most of its credit card debt-sales activities.
- Senator Presses Consumer Bureau on Installment Lender World Finance
ProPublica 25 Jul 2013
The Senate Special Committee on Aging held a July 24 hearing that examined how high-cost financial products such as payday loans affect seniors. Sen. Ron Wyden (D-Ore.) questioned a top official from the Consumer Financial Protection Bureau (CFPB) on how to address and prevent abuses by installment lenders.
- Consumers Rack Up $14.3 Billion in 'Gray' Charges
USA Today 25 Jul 2013
A new study commissioned by BillGuard reveals that U.S. consumers are individually paying hundreds of dollars in extra charges every year for services they never wanted or intended to sign up for.
- Expect an Even Bolder CFPB in Year Three
American Banker 23 Jul 2013
Now that the Senate has confirmed Richard Cordray as head of the Consumer Financial Protection Bureau (CFPB), the federal bank regulator is expected to be even more aggressive in its third year of existence. Observers expect the CFPB to continue its progress to implement provisions of the Dodd-Frank Act and increase public enforcement actions.
- Mortgage Lender Accused of Paying Illegal Bonuses for Costlier Loans
Los Angeles Times 23 Jul 2013
The Consumer Financial Protection Bureau has filed suit against Castle & Cooke Mortgage, which it says paid illegal bonuses to employees who steered home buyers toward higher-cost financing.
- 'Consumer Mortgage Choice Act' Takes Away Consumers' Choices
American Banker 22 Jul 2013
Americans still have not fully recovered from the foreclosure crisis, yet some members of Congress already want to dilute new consumer protection rules for mortgage products, write Rep. Maxine Waters (D-Calif.) and Sen. Elizabeth Warren (D-Mass.). The proposed Consumer Mortgage Choice Act would undermine the Dodd-Frank Act’s ability-to-repay stipulation requiring lenders to assess whether a borrower can afford a mortgage before extending credit to that individual.
- The Good Guy Wins
New York Times 22 Jul 2013
Two years after his nomination by President Obama, Richard Cordray was confirmed last week as director of the Consumer Financial Protection Bureau (CFPB). This will allow the agency to build on its existing accomplishments, including a crackdown on abusive credit card tactics, and boost other projects, such as the regulation of credit reporting agencies and debt collectors.