CFPB Supervision Recovers $11 Million for 225,000 Harmed Consumers
November 01, 2016 / Source: CFPB
Washington, D.C. – The Consumer Financial Protection Bureau (CFPB) today announced in its Supervisory Highlights report that recent supervisory actions returned more than $11 million to more than 225,000 harmed consumers. The CFPB also uncovered student loan servicer violations, such as failing to enroll qualified borrowers in affordable federal loan repayment plans, and is issuing updated procedures for student loan servicing exams. The report also outlines violations found in auto loan origination and servicing, debt collection, and mortgage origination. Additionally, the report provides information on compliance with CFPB rules and regulations, new exam policies, and best practices for better communication with non-English-speaking consumers.
“Our examiners continue to find sloppy or callous practices among some student loan servicers and other financial institutions that violate the law and put consumers at risk,” said CFPB Director Richard Cordray. “If their practices hurt consumers, they need to rethink and change their practices in light of the actions and observations found in this report.”
The Dodd-Frank Wall Street Reform and Consumer Protection Act authorizes the CFPB to supervise banks and credit unions with more than $10 billion in assets and certain nonbanks, including mortgage companies, private student lenders, and payday lenders. The CFPB has issued rules to supervise the larger participants in certain markets including consumer reporting, debt collection, student loan servicing, international money transfers, and auto finance.
Today’s report, the 13th edition of Supervisory Highlights, is focused on supervisory work generally completed between May and August 2016. It includes issues CFPB examiners found in student loan servicing, auto loan origination and servicing, debt collection, and mortgage origination. Supervisory actions in the areas of deposits, mortgage servicing, and credit cards returned $11.3 million to consumers. Specific issues uncovered by CFPB examiners being addressed through supervisory or enforcement action include: