Search Results: CFPB

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 and DOJ File Complaint and Proposed Consent Order Against Mortgage Over Racial Discrimination Allegations

On October 15, 2024 the CFPB and DOJ announced​ they had jointly filed a complaint and consent or​der ​against a mortgage company over allegations of racial discrimination in Birmingham, Alabama​​. ​ ​The joint complaint alleged that the company engaged in unlawful discrimination by “redlining majority-Black and high-Black areas in Birmingham” and engaging in acts that would discourage applicants…

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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 Enters Consent Order and Stipulation with National Bank to Resolve Allegations of Inaccurate Furnishing of Credit Information and Dispute Investigations

On September 11, 2024 the CFPB announced that it had entered into a consent order and stipulation with a national bank, resolving allegations that the bank repeatedly furnished inaccurate credit information, and that the bank knew of the inaccuracies for a year or more before correcting them in violation of the Fair Credit Reporting Act (FCRA),…

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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 Lender to Resolve Allegations of Deceptive Conduct Toward Veterans and Servicemembers

​​On August 29, 2024, the CFPB announced that it had entered into a stipulation and consent order with ​​​​a Florida-based mortgage lender, resolving allegations that the mortgage provider ​​had misrepresented the payment terms of​ cash-out mortgage refinance loans​ it offered to servicemembers and veterans. In its consent order, ​the CFPB alleged that the mortgage lender committed ​​deceptive acts or…

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