Top related persons:
Top related locs:
Top related orgs:

Search resuls for: "CFPB's"


25 mentions found


The CFPB and state attorneys general sued a career boot camp that declared bankruptcy in 2022. Prehired sued nearly 300 former students last year, saying they'd defaulted on their loans. "Prehired also represented that consumers would pay nothing until they got a job and 'partner[ed] with' Prehired in their career. The lawsuit also accused Prehired of "falsely representing the amount of debt owed by consumers by stating that Prehired could collect more than the consumer legally owed." The complaint said Prehired filed more than 280 lawsuits in 2022 demanding that former students who it said had defaulted pay $25,000 each.
Persons: Prehired, they'd, Bob Ferguson, Washingtonians, bootcamps, Ben Kaufman Organizations: Service, Consumer Financial Protection, California's Department of Financial Protection, Innovation, LinkedIn, Delaware's Department of Justice, Washington Attorney General's Locations: Wall, Silicon, Prehired
Bank of America made at least $80 million by repeatedly charging customers a $35 fee, the CFPB said. The bank would sometimes push the fee multiple times on the same transaction, per the CFPB. "Over a period of multiple years, Bank of America generated substantial additional revenue by illegally charging multiple $35 fees." The regulator ordered the bank to refund customers $80.4 million, and to pay a $120 million total fine. In May 2022, the bank was also made to pay $10 million in civil penalties for unlawfully garnishing its customers' wages.
Persons: It's, Rohit Chopra, William Haldin, Haldin Organizations: of America, Service, Bank of America, Consumer Finance Protection, Bank of Locations: Wall, Silicon
Bank of America was issuing credit cards to people without their consent for years, the CFPB said. The CFPB did not say how many current and former bank staffers were accused of submitting false credit card applications. "Bank of America wrongfully withheld credit card rewards, double-dipped on fees, and opened accounts without consent," said CFPB Director Rohit Chopra in the statement. The bank was also ordered to pay $727 million in 2014 for misleading consumers in marketing for its credit card add-ons. In 2016, Wells Fargo was similarly fined $185 million for secretly issuing credit cards to customers without them knowing.
Persons: Rohit Chopra, William Haldin, Haldin, Wells Fargo Organizations: of America, Service, Privacy, Bank of America, Consumer Financial, Bureau, Bank of Locations: Wall, Silicon, Wells
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBofA's sales goals expectations became a 'pressure cooker' for illegal activity, says CFPB's Rohit ChopraRohit Chopra, CFPB director, joins 'Last Call' to talk Bank of America having to pay out $250 million dollars for charging bogus fees to customers and creating fake accounts.
Persons: CFPB's Rohit Chopra Rohit Chopra Organizations: Bank of America
[1/2] Signage is seen at the Consumer Financial Protection Bureau (CFPB) headquarters in Washington, D.C., U.S., May 14, 2021. REUTERS/Andrew KellyJune 27 (Reuters) - The top U.S. consumer finance watchdog on Tuesday said it had fined the Nebraska payment processor ACI Worldwide (ACIW.O) $25 million for improperly processing more than $2 billion in mortgage payment transactions without customer authorization. ACI Worldwide consented to the CFPB order without admitting or denying responsibility. According to the CFPB, during a test of the payments platform in April 2021, ACI improperly used actual consumer data, rather than dummy data, which illegally initiated more than $2.3 billion in payments. Reporting by Douglas Gillison; Editing by Chizu NomiyamaOur Standards: The Thomson Reuters Trust Principles.
Persons: Andrew Kelly, Cooper, Rohit Chopra, Douglas Gillison, Chizu Organizations: Consumer Financial Protection Bureau, Washington , D.C, REUTERS, Mr, Consumer Financial, Bureau, ACI, Thomson Locations: Washington ,, Nebraska
Yuliya Taba | E+ | Getty ImagesThe Consumer Financial Protection Bureau is warning that roughly 1 in 5 student loan borrowers have financial risk factors that could cause them to struggle when their payments resume in the fall. What to do if Biden's student debt plan is struck downHere's how things go so bad with student loan debt in the U.S. Student loan borrowers are deeper in debtMeanwhile, more than half of student loan borrowers expected to resume their payments have higher monthly debt-related expenses than they did before the pause on bills began (excluding their student debt or mortgage payment), the CFPB writes. While federal student loan payments were suspended, many borrowers probably used their freed-up cash to take on more debt, Kantrowitz said. However, the CFPB's findings show millions of student loan borrowers will resume their payments in a more precarious financial situation.
Persons: Yuliya, Joe Biden, Kentia Elbaum, Justice Barrett, Mark Kantrowitz, Kantrowitz, Persis Yu Organizations: Financial, U.S . Department of Education, Finance, Consumer, Supreme, Student, Protection Locations: U.S, delinquencies
The Consumer Financial Protection Bureau advised Americans against storing money in payment apps. Surveys have found that about 76% of all Americans have used an app like Venmo at least once. Money stored in apps is often not insured, unlike deposits at larger banks insured by the government. You should probably stop leaving money in your Venmo and PayPal accounts for days, weeks, or even months at a time. That's the official view of a federal government agency that is warning users of popular payment apps like Venmo, PayPal, Cash App, and more that they should avoid keeping large amounts of money on the app because it could be at risk.
Persons: That's, Rohit Chopra Organizations: Consumer Financial, Bureau, Morning, PayPal
The agency resolved its 2020 lawsuit against Rhode Island-based Citizens Bank for violating the Truth in Lending Act, which protects consumers against unfair credit billing and credit card practices. The CFPB said in its suit that the bank automatically denied fraud claims and billing error notices in certain circumstances. "As outstanding credit card debt approaches $1 trillion, the CFPB will be closely watching the conduct of the credit card industry." Citizens Bank noted that the issue involved a small subset of its credit card customers. Citizens Bank is among the 15 largest consumer banks in the U.S. with branches and ATMs in 14 states and Washington, D.C.
WASHINGTON — New York Attorney General Letitia James is leading a multistate effort to urge the Supreme Court to overturn a decision that threatens the existence of the nation's leading consumer protection agency. Attorneys general in 22 other states and the District of Columbia joined New York in an amicus brief filing to the court Tuesday in support of the Consumer Financial Protection Bureau. The brief comes a day after dozens of current and former Democratic lawmakers filed a separate amicus brief defending the agency. The Supreme Court agreed in February to hear arguments after the Biden administration appealed the U.S. 5th Circuit Court of Appeals' decision that the CFPB's funding method is unconstitutional. If the Supreme Court decides not to overturn the 5th Circuit's ruling, it could invalidate "numerous CFPB rules and other regulatory actions" and harm millions of Americans while destabilizing the consumer financial sector, the attorneys general said in a statement.
WASHINGTON — Over 140 current and former Democratic lawmakers filed an amicus brief in the Supreme Court on Monday to defend the country's leading consumer protection agency from challenges to its regulatory authority. Brown chairs the Senate Banking Committee while Waters is the ranking member of the House Financial Services Committee. The Supreme Court agreed to hear arguments in the case in February, four months after a federal appeals court panel unanimously ruled that the CFPB's funding method was unconstitutional. The Biden administration appealed the 5th Circuit's decision to the Supreme Court, but a final decision could be delayed until June 2024 to hear other arguments in the case. In the brief, lawmakers said succinctly that "the judgment should be reversed."
Sen. Elizabeth Warren wants to know if credit card companies stand with the banks. Currently, credit card companies are permitted to fine consumers up to $41 for each missed credit card payment — no questions asked. The other nine credit card companies Warren sent the letter to did not immediately reply to a request for comment. She wanted to know why reducing credit card late fees would be any different. Warren also asked each credit card company to answer how much money they collect in credit card fees each year — and the proportion from low-income earners — and the actual cost of collecting those fees.
March 23 (Reuters) - The U.S. Consumer Financial Protection Bureau's funding structure is constitutional, a Manhattan appeals court ruled on Thursday, as the U.S. Supreme Court prepares to consider the issue next term. Circuit Court of Appeals finding the CFPB's funding unconstitutional. Circuit Court Judge Richard Sullivan said the constitution only requires that expenditures be authorized by an act of Congress. U.S. Supreme Court decisions and historical principles of congressional spending support that conclusion, he wrote. Circuit Court of Appeals, No.
March 23 (Reuters) - A Virginia company has agreed to pay $24 million over allegedly illegal debt collection practices, the top U.S. agency for consumer financial protection said on Thursday, calling this a repeat offense. In 2015 the CFPB ordered Portfolio Recovery Associates to cease collecting on debts without reasonable basis, selling debt, or threatening to sue or suing when they had no intent to prove their claims. The company agreed to pay $27 million to resolve these allegations. The latest $24 million payment agreement includes a fine, as well as repayment to consumers harmed, pending court approval. Portfolio Recovery Associates did not immediately respond to a request for comment.
Republican Rick Scott and Democrat Elizabeth Warren blamed the collapse of the two banks on regulatory failures at the U.S. central bank, which has operated up to now with an internal inspector general who reports to the Fed board. "Our legislation fixes that by establishing a presidentially-appointed, Senate-confirmed inspector general at the Fed, like every other major government agency," Scott said in a joint release with Warren. Warren said this month's banking upheavals "have underscored the urgent need for a truly independent inspector general to hold Fed officials accountable for any lapses or wrongdoing." She sits on both the Senate Banking Committee and the Senate Finance Committee, and chairs subcommittees of both panels. Reporting by David Morgan and Heather Timmons; Editing by Scott Malone and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.
The CFPB found some student-loan companies have continued to collect on debt that was discharged in bankruptcy. It comes after the Education and Justice Departments reformed bankruptcy guidance for borrowers last year. The student loan servicing industry should ensure that their collection practices are compliant with the law." The companies' unlawful misconduct only adds to the difficult process borrowers must face when attempting to get rid of their student debt through bankruptcy. The entire student loan industry should take notice—the days of cheating borrowers out of their legal right to bankruptcy are over."
WASHINGTON — Lawmakers discussed ways to reform, or altogether defund, the nation's foremost consumer protection agency on Thursday, as the regulator takes aim at illegal "junk fees" levied on consumers. GOP lawmakers in the hearing criticized the Biden administration's push to eradicate "junk fees," largely regulated by the CFPB. On Wednesday, the agency released a list of illegal junk fees encompassing deposit accounts; auto and mortgage loan servicing; and payday and title lending. Subcommittee member Rep. Blaine Luetkemeyer, R-Mo., said Chopra has used junk fees as an excuse to expand his authority. The CFPB's working definition of junk fees is "any fee they don't like," argued Devin Watkins, an attorney at the conservative-leaning Competitive Enterprise Institute.
Fitch identified Discover Financial Services (DFS.N), Capital One Financial (COF.N), Synchrony Financial (SYF.N) and Bread Financial Holdings (BFH.N) among those at risk. Credit card companies typically rely on late fees to act as a bulwark against spending volumes tapering off when the economic environment is tough. If the CFPB's rule is implemented in its current form, it could reduce those fees by as much as 75% annually, the agency said. Michael Taiano, senior analyst at Fitch Ratings, said card companies could potentially resort to legal action to delay enforcement of these rules. "They could also respond by introducing other fees, like statement charges, which would charge a customer every time they request a statement," Taiano said.
Feb 27 (Reuters) - The U.S. consumer financial watchdog agency on Monday said it had permanently barred California mortgage broker RMK Financial Corp. from the mortgage lending industry, accusing it of repeat violations against military personnel and their families. "Our action reflects our commitment to weed out repeat offenders, and we are shutting down this outfit for good," he said. According to the CFPB, Majestic Home Loan "tricked" military families by falsely claiming government affiliation while also deceiving borrowers about interest rates. The agency on Thursday announced a $10 million fine against the Georgia title lender TitleMax for allegedly making unlawful loans to military personnel and charging illegally high interest rates. The Supreme Court on Monday agreed to hear an appeal against an October ruling from the 5th U.S.
The justices will hear the case during the court's next term, which begins in October. The case is the latest to come before the Supreme Court seeking to rein in the authority of federal agencies. The CFPB, which enforces consumer financial laws, was created after the 2008 financial crisis as part of a federal law known as the Dodd–Frank Wall Street Reform and Consumer Protection Act. A Democratic-led Congress in 2010 set up the agency to draw funding annually from the Federal Reserve, the U.S. central bank, which last fiscal year transferred around $642 million to the consumer protection agency. The court heard arguments in November in two other cases involving agency power.
The Supreme Court on Monday agreed to hear arguments in a case challenging the constitutionality of funding for the Consumer Financial Protection Bureau. The order taking the case came four months after a federal appeals court panel unanimously ruled that the CFPB's funding mechanism was unconstitutional. The Biden administration had asked the Supreme Court to hear its appeal of that ruling. CNBC has requested comment from the Community Financial Services Association of America, the group that challenged the CFPB's authority in the case. The court, in its 5-4 ruling that year, said that the director must be removable by the will of the president, for any reason.
The Supreme Court will take on a lower court's decision that the Consumer Financial Protection Bureau's federal funding is unconstitutional. Senator Elizabeth Warren advocated for the Supreme Court to strike down that decision. "If the Supreme Court follows more than a century of law and historical precedent, it will strike down the Fifth Circuit's decision before it throws our financial markets and economy into chaos." McHenry, who now runs the House Financial Services Committee, has hinted at seeking stronger oversight for CFPB for months now. And that's on top of a longer context of Republicans challenging the CFPB's funding and decision making.
The Supreme Court will take on a lower court's decision that the Consumer Financial Protection Bureau's funding structure is unconstitutional. CFPB was set up to prevent another 2008-like financial crisis and has cracked down on big banks and the student-loan industry. On Monday, the Supreme Court agreed to take a decision from the Fifth Circuit Court of Appeals, which ruled in October that the Consumer Financial Protection Bureau's (CFPB) funding structure is unconstitutional. The Supreme Court won't hear the case until next term, though, meaning a final decision isn't likely until the spring of 2024. Created in 2011 under former President Barack Obama, the CFPB was intended to protect Americans from another financial crisis following the 2008 recession.
Feb 23 (Reuters) - The U.S. consumer watchdog on Thursday fined TitleMax $10 million, saying the Georgia-based title lender illegally made thousands of auto loans to military borrowers over a five-year period, often charging interest rates well above legal limits. The Consumer Financial Protection Bureau said the business, which comprises an array of entities operating under TMX Finance LLC, was a repeat offender. From 2016 to 2021 TitleMax made nearly 2,700 prohibited auto loans to borrowers covered by the Military Lending Act and charged illegal fees on about 15,000 loans, the CFPB said. In its statement, TitleMax said the CFPB's factual and legal allegations were unproven and untrue. It also denied being a repeat offender, saying it had complied with all prior Bureau directions.
Since the start of the pandemic, Americans have been able to access free weekly credit reports. "Even when consumers are successful in having their complaint addressed, complaints call into question the underlying data contained in consumers' credit reports," the report read. Navigating the credit reporting system in the United States requires skill and often a good deal of patience. Democratic Rep. Maxine Waters of California, who chaired the panel at the time, said during the hearing that a public credit reporting agency "would be a major upgrade over today's broken, biased credit reporting system." Consumer advocates stress that not only should credit reports be easily accessible but that Americans should be able to scrutinize the information contained in credit reports.
Kannon Shanmugam of Paul, Weiss, Rifkind, Wharton & Garrison represented PayPal, while CFPB senior counsel Christopher Deal represented the regulator. The CFPB created its Prepaid Rule to offer consumers legal protections on prepaid accounts similar to those on products such as checking accounts, including the ability to challenge payment errors, unauthorized transactions and fraud. Chief Judge Sri Srinivasan and Circuit Judge Cornelia Pillard joined Rao's decision. The appeals court returned the case to Leon to consider PayPal's other challenges to the Prepaid Rule, including constitutional and administrative law claims. Circuit Court of Appeals, No.
Total: 25