Search Results: CFPB

CFPB Enters Into $95 Million Consent Order with Credit Union to Resolve Allegations of Improper Overdraft Fee Practices

​On November 7, 2024, the CFPB ann​ounced​​ that it had entered into​ a consent order with a major credit union​​ resolving ​allegations that the credit union improperly assessed overdraft fees against consumers​​. The credit union agreed to pay nearly $95 million to resolve the allegations. ​​In its ​consent order​, the CFPB​ alleged that…

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CFPB Enters into Consent Orders with Tech Company and Bank Over Credit Card Allegations

On October 23, 2024, the CFPB announced that it had entered into separate consent orders with a large tech company and a bank over a joint credit card venture. The CFPB alleges that the credit card, which combined the tech company’s software with the credit-backing of the bank, ​was launched prematurely, which…

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CFPB Issues Guidance Emphasizing the Importance for Banks to Maintain Sufficient Proof of Customers’ Affirmative Consent to Overdraft Services

In recent discussions surrounding banking practices, the issue of overdraft fees, particularly for ATM and one-time debit card transactions, has gained significant attention.  On September 17, 2024, the Consumer Financial Protection Bureau (Bureau) issued Consumer Financial Protection Circular 2024-05 asserting that “[a] bank or credit union can be in violation…

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CFPB Permanently Bans Large Student Loan Servicer from Market and Orders Redress of $120 Million

On September 12, 2024, the CFPB announced that it entered into a stipulated proposed order with a large student loan servicer resolving allegations that the servicer forced borrowers into costly repayment options.​ Under the proposed order, the servicer would cease its servicing federal direct loans. In a January 2017 complaint, the CFPB accused the…

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CFPB Enters into $28 Million Consent Order Resolving Allegations of Consumer Credit Misreporting

​On September 11, the CFPB announced that it had entered into a consent order with a national bank resolving allegations that the bank reported inaccurate information to consumer reporting companies.  The bank agreed to pay nearly $28 million to resolve these allegations.​ The CFPB alleged the bank violated the Fair Credit Reporting Act (FCRA) and the Consumer…

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CFPB Report Spotlights Consumer Risks with Private, Solar-Specific Loans

On August 7, 2024, the Consumer Financial Protection Bureau (CFPB) issued a report spotlighting four marketing and financing practices relating to solar financing that it claims pose significant consumer risks (the Report).  The CFPB noted that solar-powered electricity is a growing industry—suggesting that these risks may become an enforcement priority. …

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CFPB Enters Into Consent Order With Mortgage Servicer Resolving Allegations of Improper Foreclosure Practices

On August 21, 2024, the Consumer Financial Protection Bureau (CFPB)​ announced​ that it entered into a consent order with a​ Florida-based mortgage servicer, resolving allegations related to the mortgage servicer’s foreclosure practices. ​The consent order​ resolves allegations ​that the mortgage servicer’s foreclosure practices violated the Consumer Financial Protection Act of 2010 (CFPA), 12 U.S.C. §§ 5531, 5536; the…

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CFPB Files Suit Against "Rent-to-Own" Business Alleging Illegal Lending Practices

​On July 26, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it filed a complaint against a point-of-sale financing company and its former chief executive officer in the United States District Court for the District of Utah. The complaint alleges that defendants’ “virtual rent-to-own” ​product uses misleading marketing and abusive enrollment practices that target consumers with…

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Seventh Circuit Revives CFPB’s ECOA Action Alleging Discrimination Against Prospective Applicants Against Nonbank Lender

On July 11, the Seventh Circuit held that the Equal Credit Opportunity Act, 15 U.S.C. § 1691 et seq. (ECOA) authorizes the imposition of liability for the discouragement of prospective applicants. See CFPB v. Townstone Financial, Inc., ___ F.4th ___ (7th Cir. 2024), 2024 WL 3370023. As anticipated in Goodwin’s…

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CFPB Files Proposed Judgment in Bank Suit Regarding the Opening of Unauthorized Accounts

​On July 9, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it filed a proposed stipulated final judgment and ​order in its suit against a national bank accused of allegedly opening unauthorized accounts on behalf of consumers​​. ​ The proposed judgment would resolve allegations that the bank opened unauthorized accounts in the names of its customers.  As…

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CFPB Enters Into Consent Order with Bank Resolving Allegations of Force-Placed-Insurance

On July 9, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a national bank, resolving allegations related to the bank’s auto lending practices. The consent order​ ​​related to auto lending practices resolves allegations that the bank’s practices related to force-placed insurance policies violated the Consumer Financial Protection Act of 2010 (CFPA), 12…

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CFPB Issues New Rule on Use of Artificial Intelligence Models in Mortgage Lending

On June 24, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it had approved a new rule about the use of algorithms and artificial intelligence (AI) for home appraisals and valuations. The new rule was promulgated by the CFPB, the Federal Reserve, the Federal Deposit Insurance Corporation, the National…

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CFPB Proposes Rule to Ban Medical Debt from Credit Reports

Earlier this month, the Consumer Financial Protection Bureau (CFPB) issued a proposed rule to amend Regulation V, which implements the Fair Credit Reporting Act (FCRA), as to medical information and debt.   This proposed rule follows Director Chopra’s remarks in March 2022, concerning a report on medical billing and collection practices…

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CFPB Settles with Nonbank Mortgage Originator for $4 Million

On June 18, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it has filed a proposed order that would require a Florida-based nonbank mortgage loan originator to pay a $3.95 million penalty for allegedly submitting incorrect loan data to federal regulators.   In an October 2023 complaint, the CFPB accused the mortgage originator of…

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CFPB Enters into Consent Orders with Reverse Mortgage Servicers for $16.5 Million

On June 18, 2024, the Consumer Financial Protection Bureau (CFPB or Bureau) announced that it has entered into consent orders with two companies totaling $16.5 million in civil penalties and consumer redress​, resolving allegations that those companies failed to properly service reverse mortgages. The CFPB alleged both companies violated the Consumer Financial Protection Act…

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