Consumer Financial Protection Bureau Recovers $14 Million in First Half of 2017

Last week, the Consumer Financial Protection Bureau (CFPB) announced that in January to June of 2017, supervisory actions resulted in $14 million for over 104,000 consumers.  "The Bureau’s recent supervision work has returned $14 million to more than 100,000 consumers, and found companies deceiving consumers and violating the law," CFPB Director Richard Cordray stated. "Through supervision, the CFPB is putting an end to practices that harm consumers and taking proactive steps to prevent future violations."

Supervision and Corrective Actions

The CFPB has authorization to supervise credit unions and banks with over $10 billion in assets.  The CFP also has authorization to supervise certain non-banks, such as mortgage lenders, private student loan lender, payday lenders, as well as “larger participants.” CFPB supervisory reviews and exams generally will involve investigating an entity’s compliance with federal consumer finance laws, and assessing the entity’s compliance management system.  When an entity has been determined to have violated a statute or regulation, the CFPB will direct the entity to take corrective actions.  Corrective actions are things like improving training or implementing new policies.  These entities are also directed to send refunds to customers, credit accounts, pay restitution, or take other actions.

Improper Conduct

Some of the improper conduct found earlier this year and highlighted by the CFBP include, among other things: automobile loan servicers repossessing borrowers’ vehicles after borrower has caught up payments or entered into agreements to avoid repossession, deceptive misrepresentations to consumers regarding the availability and costs of pay by phone options, and misrepresentation to consumers about the benefits and terms of credit card add-on products.

In addition to supervising certain banks and non-banks who originate their own debt, the CFPB also covers non-banks who are larger participants in debt collection field.  During their examinations, the CFPB found several violations of the Fair Debt Collection Practices Act, such as false representations made to authorized users on credit cards concerning their liability for the debt, false representations about credit reports, and communications with consumers at inconvenient times.

If you are having problems with a lender or debt collector, we can help.  Please contact our office location most convenient to you to set up an appointment with an attorney. To read the Supervisory Highlights published by the CFPB that I referenced above, click here.