DIRS.INFO The most relevant business & tech news

☆ Fifth Third bank hit must pay penalties for repossessing cars and forcing auto insurance on customers
▼ + stars: | 2024-07-09 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +2 min

The CFPB said it was imposing penalties on the bank for illegally charging customers for unnecessary auto insurance policies. “Fifth Third Bank demanded borrowers pay for coverage they did not need or else face delinquency, additional fees and repossessions,” the agency said in a statement. For its illegal auto insurance activities, the bank must pay $5 million in redress to affected customers, the CFPB said. In 2015, the bank was ordered to pay $18 million to harmed Black and Hispanic borrowers in what CFPB charged was discriminatory auto loan pricing. And it was ordered to pay $3 million to harmed consumers and a $500,000 penalty for illegal credit card practices.

Persons: ”, Rohit Chopra, CFPB, incentivize, ” CFPB, Susan Zaunbrecher Organizations: New, New York CNN — Fifth Third Bank, Consumer Financial, Bureau, Third Bank, Bank, Fifth Locations: New York, Cincinnati , Ohio, Midwest

☆ Credit card late fees capped at $8 as part of Biden administration crackdown on junk fees
▼ + stars: | 2024-03-05 | by ( Matt Egan | ) edition.cnn.com time to read: +3 min

CNN —Federal regulators finalized a rule on Tuesday to cap most credit card late fees at $8 as part of a broader push by the Biden administration to eliminate junk fees. The new rule applies to large credit card issuers – those with more than 1 million accounts. These companies represent more than 95% of total outstanding credit card debt, according to the CFPB. It also comes as Americans continue to pile on credit card debt, which recently exceeded a record $1.1 trillion. Some borrowers, especially Millennials and those with lower incomes, have been falling behind on their credit card debt following more than two years of high inflation.

Persons: Biden, ”, Rohit Chopra, “, Greg Baer, Joe Biden, “ It’s, Chuck Bell Organizations: CNN, Consumer Financial, White, Bank Policy Institute, Council, Consumer

☆ Consumer watchdog agency proposes limits on overdraft fees at big banks and credit unions
▼ + stars: | 2024-01-17 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +4 min

New York CNN —The Consumer Financial Protection Bureau on Wednesday said it is proposing a rule that would curb excessive overdraft fees charged to customers of large banks and credit unions, potentially saving consumers as much as $3.5 billion a year. Too often, the consumer watchdog agency has noted, bank customers are surprised by overdraft fees and those who can least afford them are charged the most frequently. Annual overdraft fee revenue in 2019 was an estimated $12.6 billion,” CFPB said. Today, big banks have made many modifications to their overdraft practices, effectively lowering their overdraft revenue to roughly $9 billion a year. The CFPB rule would lower that amount further by requiring big banks and credit unions to be as forthcoming about the terms of extending an overdraft loan as they are for other lending products.

Persons: ”, Rohit Chopra, CFPB, ” CFPB Organizations: New, New York CNN, Consumer Financial, Biden Administration Locations: New York, United States

☆ Americans ran up $105 billion in credit card interest last year alone
▼ + stars: | 2023-10-25 | by ( Matt Egan | ) edition.cnn.com time to read: +5 min

New York CNN —Danielle Foskie is among a growing number of Americans who have stumbled into a credit card doom loop. She turrned to credit cards to get by, eventually racking up $60,000 in credit card debt. Americans were hit with $105 billion in credit card interest last year alone, according to the CFPB’s biennial consumer credit card report. As signs of consumer stress emerge, the credit card industry continues to perform well financially. The report also warned of an “apparent lack of competition” on credit card rates.

Persons: Danielle Foskie, I’ve, ” Foskie, She’s, Renee Barrett, ” Barrett, Barrett, “, ”, Rohit Chopra Organizations: New, New York CNN, CNN, Financial, “, New York Fed Locations: New York, Cleveland , Ohio, United States, Bronx, Covid

☆ US watchdog teases crackdown on data brokers that sell Americans’ personal information
▼ + stars: | 2023-08-15 | by ( Brian Fung | ) edition.cnn.com time to read: +3 min

Washington CNN —The US government plans to rein in the vast data broker industry with new, privacy-focused regulations that aim to safeguard millions of Americans’ personal information from data breaches, violent criminals and even artificial intelligence chatbots. The potential rules, which are not yet public or final, could bar data brokers from selling certain types of consumer information — including a person’s income or their criminal and payment history — except in specific circumstances, the CFPB said. The push could also see new restrictions on the sale of personal information such as Social Security numbers, names and addresses, which the CFPB said data brokers often buy from the major credit reporting bureaus to create their own profiles on individual consumers. The announcement follows an agency study into the data broker industry this year that found widespread concerns about how consumer data is being collected, used and shared. The CFPB isn’t the only US agency clamping down on the massive data industry.

Persons: ”, Rohit Chopra, Lina Khan Organizations: Washington CNN, Consumer Financial, Fair, U.S, Federal Trade Commission

As a result, the Consumer Financial Protection Bureau ordered Bank of America (BAC) to pay more than $100 million to customers and $90 million in penalties. The Office of the Comptroller of the Currency also ordered Bank of America (BAC) to pay $60 million in fines. “Bank of America wrongfully withheld credit card rewards, double-dipped on fees, and opened accounts without consent,” CFPB Director Rohit Chopra said in a statement. Bank of America noted in an email to CNN that those fees were eliminated last year. In 2014, it was ordered by the CFPB to pay $727 million in redress to consumers for illegal credit card practices.

Persons: Wells, ”, Rohit Chopra, Bank of America “, “ Organizations: New, New York CNN, Bank of, Consumer Financial Protection Bureau, Bank of America, Currency, “ Bank of, OCC, CNN, of America Locations: New York, United States

Those are some of the infractions allegedly committed by Wells Fargo that has led the bank to agree to a $3.7 billion settlement with the Consumer Financial Protection Bureau. “The CFPB is ordering Wells Fargo to refund billions of dollars to consumers across the country. “As we have said before, we and our regulators have identified a series of unacceptable practices that we have been working systematically to change and provide customer remediation where warranted," Wells Fargo CEO Charlie Scharf said. "This far-reaching agreement is an important milestone in our work to transform the operating practices at Wells Fargo and to put these issues behind us. Wells Fargo has been the target of regulators since at least 2011, when reports of its strategy to cross-sell multiple products to customers first emerged.

Dec 20 (Reuters) - Wells Fargo & Co (WFC.N) agreed to pay $3.7 billion to settle charges from a U.S. consumer watchdog over widespread mismanagement of car loans, mortgages and bank accounts, the regulator said Tuesday. "Wells Fargo is a corporate recidivist that puts one-third of American households at risk of harm,” CFPB Director Rohit Chopra told journalists in a briefing. Shares of Wells Fargo were down less than 1% in late morning trading. Wells Fargo has faced multiple enforcement actions taken by the CFPB and other banking regulators for violations across the bank's business lines. Scharf became CEO in 2019, the fourth person to lead Wells Fargo since the scandal emerged.

Search resuls for: "” CFPB"

8 mentions found