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WBK Industry News - Federal Regulatory Developments

CFPB Recovers $14 Million for Approximately 104,000 Consumers in First Half of 2017

From January through June of 2017, CFPB supervisory resolutions resulted in consumer restitution of approximately $14 million.  The CFPB outlines their findings in Issue 16, Summer 2017 Supervisory Highlights.   Some of the highlighted findings include:

  • Consumers being misled by banks about overdraft coverage, and checking account fees.
  • Consumers deceived by credit card companies about pay-by-phone fees such as failure to disclose less costly fees or options.
  • Wrongly repossessed automobiles including repossessing after repossession was cancelled, wrongful listing of accounts as being delinquent when they were not, failing to check documentation to check and see if repossession had been cancelled.
  • Improper communication with consumers about debts including repeated calls to third parties such as personal and work references, failing to stop calls by asking third parties to relay messages and not confirming that the correct party was contacted prior to starting collection activities.
  • Disregard for Know Before You Owe mortgage rules involving, but not limited to improperly charged fees prior to consumer agreement to the mortgage transaction and overcharge of closing fees.
  • Servicers and/or their vendors failed to take or took improper steps in working with borrowers attempting to avoid foreclosure.