Search Results: CFPB

CFPB Orders Money Exchange Company to Pay $2.5 Million Over Remittance Practices

On January 30, 2025, the Consumer Financial Protection Bureau (CFPB) announced  that it had entered into a consent order with an international remittance company regarding the company’s use of deceptive advertising for fee amounts and failure to properly disclose applicable fees, in violation of both the Consumer Financial Protection Act (CFPA) and the Electronic Fund…

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CFPB Files Suit Against Bank For Alleged Savings Account Interest Rate Freezing

On January 14, 2025, the CFPB announced ​that it had filed a complaint against a large national bank​​ for alleged ​violations of the Consumer Financial Protection Act (CFPA), the Truth in Savings Act (TISA) and TISA’s implementing regulation, Regulation DD,​ regarding the bank’s alleged improper interest rate practices. According to the CFPB’s complaint, the bank offered a…

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CFPB Sues Consumer Reporting Agency Regarding Investigations of Consumer Disputes

On January 7, 2025, the Consumer Financial Protection Bureau (“CFPB”) filed a complaint against a nationwide consumer reporting agency (“Agency”) under the Fair Credit Reporting Act (“FCRA”) and the Consumer Financial Protection Act of 2010 (“CFPA”). The CFPB claims that the Agency inadequately reinvestigated consumer disputes that challenged the information found in consumer…

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CFPB Sues Bank Regarding Allegations of Fraud Against Benefit Recipients

​On December 6, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it had filed suit against a bank subsidiary of a financial services company for allegedly disconnecting customer service calls, charging illegal ATM fees, misleading fraud victims, imposing illegal terms ​​of service on consumers seeking to stop payments, failing to investigate account…

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CFPB Enters Into Consent Order with Student Lender Resolving Allegations of Deceptive Advertising

​​On December 5, 2024, the CFPB announced that it had entered into a proposed stipulated final judgment​ and order with a student lender and its investors, resolving allegations that the student lender had violated the Consumer Financial Protection Act​ (CFPA)​, the Truth in Lending Act (TILA), and Regulation Z through deceptive advertising and disclosures. In…

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CFPB Permanently Bans Student Loan Servicer

On December 4, 2024, the CFPB announced that it entered into a proposed stip​​ulated judgment with a student loan servicer and its owner, resolving allegations that the student loan servicer violated the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act (CFPA). According to the judgment, the servicer at issue and its owner illegally…

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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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