Ed's Blog

CFPB Gets Results for Consumers...And Taxpayers, Too

By Ed Mierzwinski
Consumer Program Director

Last week, the CFPB ordered Bank of America to refund $727 million to consumers for deceptive marketing of credit card add-on products, including identity theft protection and payment protection/debt cancellation insurance. I've written extensively about just how tawdry and junky these products are.

It's the CFPB's 5th such case against a big credit card company. Total refunds to consumers for all five cases, including the 4 others against Capital One, Discover, American Express and JPM Chase, total nearly $1.5 billion dollars. Add the refunds to consumers from CFPB's two other cases for different credit card violations, against AmEx and GE Capital Retail Bank, and refunds directly to consumers from credit card wrongdoers alone total $1.6 billion. The CFPB is certainly getting results for consumers. The PIRG-backed Americans for Financial Reform has a running chart listing all the CFPB's enforcement actions.

But since tomorrow is tax day, it's also important to recognize that taxpayers also benefited from CFPB's action. CFPB's consent agreement ordered BofA not to take a tax writeoff (nor seek indemnification) on the $20 million civil penalty it also was required to pay into the CFPB's Civil Penalty Fund:

73. The Bank shall treat the civil money penalty as a penalty paid to the government for all purposes. Regardless of how the Bureau ultimately uses those funds, the Bank shall not:

(a) Claim, assert, or apply for a tax deduction or tax credit with regard to any federal, state, or local tax for any civil money penalty that the Bank pays pursuant to this Order; or

(b) Seek or accept, directly or indirectly, reimbursement or indemnification from any source, including, but not limited to, payment made pursuant to any insurance policy, with regard to any civil money penalty that the Bank pays pursuant to this Order.

U.S. PIRG has long urged federal agencies to include similar language in their consent orders. Voluntary consent decrees, where a company "neither admits nor denies wrongdoing," must include such "no writeoff" language. If they do not, the company is likely to be able to claim a tax writeoff. U.S. PIRG Education Fund's report "Subsiding Bad Behavior" has more.

A U.S. PIRG examination of CFPB consent orders finds that paragraph 73 from the BofA order has been a "boilerplate" provision of all its settlements since the middle of FY 2013. Other agencies, including SEC and EPA, are getting the message, too. The CFPB also makes all its consent orders public (not all agencies do). But as U.S. PIRG's recent Fact Sheet No Tax Write-Offs for Wall Street Wrongdoing shows, not every bank regulator has gotten the message yet.

To protect taxpayers, as well as maximize the deterrent effect of civil penalties, U.S. PIRG's basic recommendation is that all government agencies should:

  • Make all settlement payouts non-deductible by default, including standard language in all agreements to that effect.
  • Publicly disclose all settlements on agency websites and include information about any portion that corporations have not been barred from deducting on their taxes.
  • Require corporate filings to the Securities and Exchange Commission to explain whether any settlement payments were written off.
  • Ensure “truth in advertising” by requiring regulators and corporations to disclose the after-tax amounts of settlements, a more accurate portrayal of the penalty a company will really pay.

Comments

People and negotiators are so careful nowadays especially if it is a public content and matter. There is no surprise is that; a published material is so tightly concerned with the mortgage business party. Because if there are flaws in the settlement, that means public will make them pay.
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/

Perhaps you can write next articles referring to this article. I wish to learn more issues about it!

The other nice article http://arentin.blogspot.com/2014/02/unit-link-terbaik-di-indonesia-commo... , & don't forget please go to useful article http://arisnbw.blogspot.com & good article http://www.postingku.com Junaedy & article http://arisnbw.blogspot.com/2013/10/ciptojunaedy.html & good article http://arisnb.nulis.web.id/cipto-junaedy.html Cipto that interesting & useful 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 !

Testing 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

Testing 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

Thanks combination of suitable and useful information and well-written sentences that will certainly entice your sense.There are so multiple comments here that are really entertaining and conducive to me thanks for sharing a link especially for sharing this blog. Piala Dunia 2014

http://www.living-business.org You could own the Real Estate or be the company that provides the service. Or combine them and get the best of both worlds.

http://www.smartgreenbusiness.org I wish I could take about a week to give business people an introduction to Green business practices. Environmentalism has become an immense diversity of issues, and even scaling down to the parts that apply to business leaves enough information to fill a truckload of books.

http://www.minoritybusinesssolutions.org Small minority business owners are faced with a lot of obstacles when attempting to create the right small business marketing strategies. There are so many barriers to overcome with marketing

http://www.living-business.org You could own the Real Estate or be the company that provides the service. Or combine them and get the best of both worlds.

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

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: 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

http://www.smartgridbusinessnetwork.org In many of my articles I've explained the benefits of owning variable speed pool pumps. One of the major benefits I continually point out is the reduction of energy consumption on the power grid.

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.
BUNDA.COM AGEN TEXAS DAN DOMINO ONLINE INDONESIA TERPERCAYA |
BENGKEL LAS"

Most creditors are not as cut-throat as you think, and they will work
ith you to schedule smaller payments that fiit your budget.
Thee biggest reasons employees ask for payroll advances is their lack of budgeting
skills; moxt say they live paycheck to paycheck. It wil alxo show the credit companies how
responsible you are, and iff you do need to gett more ctedit in the future, you will have a much easier time.

Here is my web page <a href="http://topcreditscore.co">bankruptcies</a>

The idea of being able to get fantastic Cipto Junaedy properties at affordable prices may seem fantastic at first but there are a few drawbacks that you need Cipto Junaedy to be aware of. The first is that with a short sale property, the bank and the seller both have to approve your offer. If one or the other does not like the amount Unit Link Terbaik di Indonesia Commonwealth Life Investra Link that you are offering or the terms that your offer is conditional on the sale will not go through. Because you are dealing with a group of individuals, you may find that approval or rejection Sambut Brazil 2014 of your offer will take a very long time to finalize as well.

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://motoooor.weebly.com/
http://motorcoment.wordpress.com/
http://motorciamik.weebly.com/
http://bib1991.wordpress.com/

wow thanks for your posting were you must visit Cipto Junaedy - Pakar Property http://catatan-kk.blogspot.com/2014/04/cipto-junaedy.html to know about them.

Pages

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.