WBK Industry News - Federal Regulatory Developments

CFPB Supervision of Banks and Nonbanks Recovers $14.3 Million for Consumers

On March 8, 2016, the Consumer Financial Protection Bureau (CFPB) released their 10th edition of Supervisory Highlights, generally covering supervisory activities completed between September 2015 and December 2015.

Recent non-public supervisory actions and self-reported violations at banks and nonbanks resulted in $14.3 million in remediation to approximately 228,000 consumers. Examinations conducted during the last months of 2015 found violations in the student loan market, including illegal automatic defaults by student loan servicers and illegal garnishment threats by debt collectors performing services for the Department of Education. Examiners also found instances of international money transfer companies violating the CFPB’s new remittance rule, inaccuracies with deposit account information provided to credit reporting companies, and debt collectors illegally contacting consumers after receiving written requests from consumers to cease debt collection communications.