Ed's Blog

CFPB Gets Results for Consumers In December

By Ed Mierzwinski
Consumer Program Director

In December, the CFPB got major results for the consumers it is charged with protecting from unfair financial practices. Here's a quick rundown of the CFPB's enforcement and other actions this holiday month.

  • On December 10, the CFPB Ordered GE Capital Retail Bank to repay consumers $34 million over deceptive marketing by doctors and dentists of its CareCredit medical debt credit card. As we noted to the press: "Somebody you're expecting to provide you with treatment steps in and acts as your bank and you just think, oh, they're here to help me," [Mierzwinski]  said. "You're shopping for health care, you're not shopping for credit, and that's what the CFPB's message is here today."
  • On December 12, CFPB held an important field hearing in Dallas to announce preliminary results of its study of forced arbitration clauses in consumer contracts. After it completes the study, and issues a report to Congress, the CFPB gains statutory authority to ban or regulate these small print boilerplate contractual provisions that limit your right to go to court to redress unfair practices. The report issued by CFPB found that 9 out of 10 clauses requiring arbitration of claims also limit consumer rights to band together in class actions.
  • On December 16, the CFPB, joined by several states, filed its first online lending lawsuit, against a loan servicing company known as CashCall. The CFPB rejected the firms's various defenses of its activities, such as " seeking to collect on loans that were completely void or partially nullified because the loans violated either state caps on interest rates or state licensing requirement laws." Among the rejected defenses was the firm's claim that its relationship with Western Sky, a lender allegedly connected with a Native American Indian reservation, gave it some sort of "rent-a-tribe" sovereign immunity from state or federal law.
  • On December 17, the CFPB publicly backed U.S. PIRG's long-time position that financial institutions should publicly disclose all of their campus card agreements with colleges and universities. Currently, institutions only need to disclose agreements regarding credit cards, but not debit, checking, or prepaid cards. Statement from my U.S. PIRG colleague Ethan Senack has more details on the CFPB's report and on campus card problems.
  • On December 19, the CFPB and 49 states settled claims with the nation's largest non-bank mortgage servicer, Ocwen in a case resulting in $2 billion in loan modifications and $125 million in direct consumer refunds. As CFPB Director Cordray explained: "We believe that Ocwen violated federal consumer financial laws at every stage of the mortgage servicing process."
  • The next day, December 20, CFPB and the U.S. Department of Justice imposed $80 million in penalties for illegal auto lending practices on Ally Financial Inc. and Ally Bank for "markup policies that have resulted in illegal discrimination against over 235,000 African-American, Hispanic, and Asian and Pacific Islander borrowers." Ally is formerly GMAC.
  • On December 23, CFPB and "the Department of Justice (DOJ) filed a joint complaint against National City Bank [through  successor PNC Bank] for charging higher prices on mortgage loans to African-American and Hispanic borrowers than similarly creditworthy white borrowers between the years 2002 and 2008.The bank will repay consumers $35 million.
  • And, that same day, December 23, CFPB also ordered American Express to "refund an estimated $59.5 million to more than 335,000 consumers for illegal credit card practices" associated with credit card add-on products. CFPB and other regulators also imposed a total of $16.2 million in penalties. For those of you not keeping score at home, in 2012 CFPB and other regulators had already slammed AmEx for $85 million in consumer refunds plus $27.5 million in additional penalties. In 2012, regulators "found that at every stage of the consumer experience, from marketing to enrollment to payment to debt collection, American Express violated consumer protection laws."

Well, it's been a good month for consumers and a bad month for corporate crime. The CFPB is getting results and making markets work better by better aligning the interests of sellers with consumers. We know that the trade press paper The American Banker noticed. Let's hope other banks and financial firms get the message in the New Year. Unfair or deceptive financial practices will not be tolerated by the CFPB, the first federal financial agency with just one job, protecting consumers. If you get caught with ill-gotten consumer gains, CFPB will make you pay them back.

Comments

protecting consumers. If you get caught with ill-gotten consumer gains, CFPB will make you pay them back.This website has very good content. Someone I work with visits your blog regularly and
Grey's anatomy seasons 1-9 DVD Box set
Breaking Bad Seasons 1-5 DVD Box set
NCIS Seasons 1-10 dvd box set
House MD seasons 1-8 DVD Box set
Curb your Enthusiasm seasons 1-8 DVD Box set

South Africa is brimmed with the excitement and joy of World Cup and if you want to be a core fan of any team then it is time to know about the best teams. I would prefer Spain due to many reasons which will convince you also.
http://rosie.besaba.com/alfamart-official-partner-merchandise-piala-duni...
http://maskodoq.blogspot.com/2013/07/CiptoJunaedy.html
http://maskodoq.blogspot.com/2014/03/unit-link-terbaik-di-indonesia.html
http://etnisjawa.blogspot.com/2013/08/apakah-cipto-junaedy-bohong.html
http://rosie.besaba.com/situs-online-terbaik-terpercaya/

Despite these improvements, not all toys on store shelves are tested by the Commission and parents still need to take care to seek out safe toys. Our Trouble in Toyland survey found five major hazards in the toys we surveyed note : Web page addresses and e-mail addresses turn into links automatically. : http://goo.gl/QX1YL2 http://kwn.me/p243
http://goo.gl/ms9gJ2
http://goo.gl/G1cGxl http://goo.gl/Ibe4n0
http://goo.gl/dKoer7 http://kwn.me/p244 Precisely what a few clearance about ones v-beck with the - it looks like . Voting rights were the big issue in committee last week. Keep an eye out for updates as we move forward! Every day, our families are bombarded by a toxic soup of chemicals found in consumer products, in air, food and water pollution. Maryland PIRG supports legislation that at www.muhammadridwan.web.id

I’ve been browsing online more than 3 hours today, yet I never found any interesting post like yours. It’s pretty worth enough for me. In my opinion, if all webmasters and bloggers made good article as you did, the web will be much more useful than ever before.

Please check nice entry http://arentin.blogspot.com/2014/02/unit-link-terbaik-di-indonesia-commo... , also don't forget please read significant news http://arentin.blogspot.com/2014/02/hotelmurahdijakarta.html also best news http://www.postingku.com Junaedy also news http://arisnbw.blogspot.com/2013/10/ciptojunaedy.html Cipto also best article http://arisnb.nulis.web.id/cipto-junaedy.html that's good also significant article http://kerajinantembaga.aagallery.co.id dan http://arentin.blogspot.com/2013/05/cipto-junaedy.html and http://www.aagallery.co.id also http://www.aa-gallery.co.id and http://www.aagallery.net . Love it !

http://mahirseogoogle.blogspot.com/2014/06/adro.html ADRO TEXTILE Konveksi Murah Indonesia – Tlp 081362666444 !
http://clorot.blogspot.com/2014/04/kursus.html Kursus SEO dan Internet Marketing Terbaik di Jakarta

You should comment on the competition comparison of the blog. You can highlight it's mind boggling. Your blog exploration/tour will broaden your conversions. 338A Sbobet Casino

ADRO TEXTILE Konveksi Murah Indonesia – Tlp 081362666444 ! http://seojoz.blogspot.com/2014/05/adro-textile.html
Kursus SEO Dan Internet Marketing Terbaik Di Jakarta http://seojoz.blogspot.com/2014/06/kursus-seo-dan-internet-marketing.html

http://www.betterfootball.org In this article, we are going to talk about how to blow past your competition and how to become a better football player fast. There are a lot of people that will tell you there's a magic pill or potion you can take and you will become a better football player or become a better athlete overnight.

http://www.sportindustryjobs.org People being affected by the economy will need some type of entertainment to get away from all the financial hardships and that is when you and the sporting industry comes in. Now I am not saying that getting a job in sports is a piece of cake but arming yourself with these seven tips will greatly increase your chances of landing a job in your area of choice in the sporting world.

http://www.esportshub.org Magazines are the platforms which render different aspects of information such as news, views, articles, reviews and much more stuff of public interest.

http://www.sportrabbit.org The best dog breeds for hunting rabbits are any member of the hunting dog group with a good nose for scenting game and a willingness and ability to follow a scent trail without becoming distracted.

I have recently started a blog, the info you provide on this site has helped me greatly. There is obviously a lot to know about this. I think he did some good things in features also. Keep working, great job! Thanks for a very interesting blog. What else can I get that kind of information written in such a perfect approach? I have a company that I"m simply now operating on, and I"ve been on the look out for such information.
http://www.seoedan.com/2014/03/bisnis-online-dan-peluang-usaha-terbaik.html
http://goo.gl/6Du9vL
http://www.seoedan.com/2014/04/itudomino.html
http://goo.gl/5Rw9kG
http://goo.gl/NvDCfi
http://www.seoedan.com/2014/04/globalbola.html
http://goo.gl/Bv5HNP
http://www.seoedan.com/2014/04/ligadaun.html
http://goo.gl/rWpFgu
http://goo.gl/LTwuVQ
http://puanguerraagoraenoticia.blogspot.com/2014/03/abcbolacom-agen-judi...
http://lashoraslentas.blogspot.com/2014/04/ligadauncom-agen-taruhan-bola...
http://www.seoedan.com/2014/03/bisnis-online-dan-peluang-usaha-terbaik.html

Much thanks to you for the embodiment of an otherworldly online journal. Where else might any individual get that sort of data composed in quite an impressive accumulate way? I have a presentation that I am quickly finishing up, and I have been on the search out for such informative content, and I a large number of Thank to you.
http://motoooor.weebly.com/
http://resepyos.jigsy.com/
http://resep99.tripod.com/
http://sempeh.soup.io/

http://www.sportzup.org Online sport betting is a game of skill. For that reason online sport betting is big business the world over. Sport betting is a popular past-time all over the world; in fact it is deeply rooted in the culture of almost all civilizations.

to enrollment to payment to debt collection, American Express violated consumer protection laws."recommended it to me to read also. Thank you pertaining to giving this excellent content on your web-siteTwo and a Half Men Seasons 1-10 DVD Box Set
Criminal Minds Seasons 1-8 DVD Box Set
Doctor Who Seasons 1-7 DVD Box Set
CSI Miami Seasons 1-10 DVD Box Set
Family Guy Season 1-11 DVD Box Set

american banker? people start buy some item on grosir tas murah

Hey There. I found your blog using msn. This is a really well written article.

I’ll be sure to bookmark it and come back to read more of your useful information.
Thanks for the post. I’ll definitely comeback.

my blog:Cipto http://pertapantrik.blogspot.com/2014/04/cipto-junaedy.html Junaedy http://ceengle.tulisan.web.id/cipto-junaedy/ Cipto http://pertapantrik.blogspot.com/2014/04/cipto-junaedy-memberi-pekerjaan... Junaedy
Peluang Usaha http://pertapantrik.blogspot.com/2014/04/peluang-usaha-franchise.html Franchise / Waralaba Laundry Kiloan Profesional Terbesar Di Indonesia

It is a funny and exciting thing that driving a 2014 Yamaha Jet Ski on the vast sea, at the same time, it is a dangerous thing for you to drive it in the sea, so you need to take protective measures to ensure safety.

First, when you drive a 2014 Sea Doo Jet Ski you need to make sure that the driver and the passenger wear personal flotation devices.

Second, you need to wear the proper gear such as wet suits, goggles, gloves, and foot wear/deck shoes.

Third, always wear or attach to your wrist a small, mouth operated whistle when you drive a 2014 Kawasaki Jet Ski.

Forth, check the fuel level before the 2014 Yamaha WaveRunners starting. Make sure you have enough fuel to return to shore.

Fifth, drivers and passenger should always keep both feet on the floor footrest. Keep your hands, feet, hair, and clothing away from the pump intake.

Sixth, never operate the Yamaha Jet Ski in less than 0.30 m of water.

Seventh, pay close attention to your speed around swimming areas, beaches, docks, and waterfronts.

I agree with you Diar, this is what i looking for. I want you to know, i search about this every where and just found it here,,,Nice, i hope you always success...
Decoder TV Kabel Berbayar Piala Dunia 2014 dan juga Decoder TV Kabel Berbayar Piala Dunia 2014
quote-net | Cara Membuat | Dessain Interior | Tips serta KIB | Komunitas Internet Banjar

Priority Action

The overuse of antibiotics on factory farms is threatening the effectiveness of lifesaving antibiotics. Call on the Food and Drug Administration to put an end to the worst practices.

Support Us

Your donation supports U.S. PIRG’s work to stand up for consumers on the issues that matter, especially when powerful interests are blocking progress.

Consumer Alerts

Join our network and stay up to date on our campaigns, get important consumer updates and take action on critical issues.