The CFPB’s Fall 2014 supervisory highlights, covering supervisory activity between March and June, points to failings by student loan servicers and debt collectors. The highlights identified six failings by student loan servicers, including misleading statements to consumers and telephone harassment. Debt collectors’ misconduct included charging illegal convenience fees to consumers paying by credit card, false threats of litigation and improper disclosure to third parties.
The Department of Defense is proposing to expand the reach of the Military Lending Act’s interest rate cap. The Act caps the interest rate on some kinds of loans to servicemembers at 36%. At present the Act’s cap applies to relatively few loans. Read More »Military Lending Act Amendment Proposed
The CFPB started collecting consumer complaints regarding debt collection in July, 2013. Fourteen months later, the data for Maryland paint an interesting picture of the collection industry’s activities in the state.
CFPB has fined U.S. Bank over its sale of two add-on products to credit card customers. “Privacy Guard” and “Identity Secure” were paid services sold to credit card customers between 2003 and 2012.
On September 16, 2014, The CFPB announced that it would sue Corinthian Colleges, which runs over 100 school campuses for falsely advertising of job prospects and illegal debt collection practices. CFPB has issued this notice to past and current students. The CFPB’s complaint is here.Read More »The CFPB’s Action Against Corinthian Colleges, Inc.
CFPB Enforcement Division Responds to Motion to Dismiss Filed by “Lawsuit Mill” Frederick J. Hanna & Associates
In July the CFPB sued Frederick J. Hanna & Associates, a Georgia law firm, for its debt collection practices (complaint here), calling the firm a “lawsuit mill.” Hanna & Associates filed a Motion to Dismiss (copy hosted by CFPB monitor) in September, and the CFPB’s response (copy hosted by Consumer Financial Services blog) elegantly explains what Hanna was doing wrong:
September 28, 2014
USA Discounters, a business that targets service members, has been fined $400,000 by the CFPB for misleading its customers. The CFPB’s action comes less than two months after a joint Washington Post/ Pro Publica report detailed USA Discounters’ collection practices.Read More »CFPB Fines USA Discounters