CFPB recovers $14 million in first half 2017
More than 100,000 consumers awarded compensation.
The United States Consumer Financial Protection Bureau (CFPB) sought and recovered $14 million worth of monetary relief for over 104,000 harmed consumers between January and June 2017.
The CFPB takes action against individuals and companies in breach of the law, while those affected are often awarded financial compensation as a result of these violations.
The bureau released findings from its Supervisory Highlights report, revealing it had successfully prosecuted against a number of banking institutions, credit card companies, auto lenders and debt collectors.
Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB is authorized to supervise banks and credit unions with more than $10 billion in assets, as well as certain non-banking companies.
The report found that in the first half of the year, banks had deceived American consumers in a variety of ways, including inaccurately describing when account fees would be waived and misrepresenting overdraft services.
Numerous credit card companies were reprimanded by examiners for not properly disclosing the cost and availability of pay-by-phone options, resulting in customers being overcharged for services they didn’t need.
Some auto loan service businesses were found to be unjustly listing consumer accounts as delinquent and improperly repossessing vehicles. In other cases, repossession cancellations were ignored.
One or more debt collectors violated regulations by not confirming they had contacted the correct person before beginning collections or by attempting to collect from consumers not directly responsible for the debt.
Additionally, some payday lenders were found to have repeatedly contacted third parties in relation to debt collection, including personal and work references listed on borrowers’ loan applications.
The report also revealed a number of mortgage companies overcharged consumers closing fees, while one or more brokers inaccurately charged application fees before consumers had agreed to mortgage transactions.
One or more mortgage servicers were found to have not exercised reasonable diligence in collecting information needed to complete borrowers’ applications, while others did not correctly list fees charged.
However, the CFPB did note that during the first half of 2017 both banks and non-banks were able to effectively comply with the bureau’s Know Before You Owe mortgage disclosure rule changes.
Have you received money for a compensation case? If you’re concerned about the authenticity of a check you receive, you can visit the CFPB’s payments by case page on the watchdog’s website to confirm its validity.