Tag Archives: CFPB

Binding Arbitration Rules Get Consumer Protection Bureau Scrutiny

by Ann Carrns, New York Times

Customers who have disputes with banks or credit card companies often can be forced to go to arbitration before a private lawyer to try to resolve the problem, rather than before a judge in court. That’s because many financial accounts come with built-in contracts containing “pre-dispute” arbitration clauses — so-called because consumers agree to them when they sign up for the account, before they actually have a disagreement. Read More ›

Corinthian Students To Get $480 Million Relief From ‘Predatory’ Loans

by Chris Kirkham, Los Angeles Times

As many as 170,000 students who took out private loans offered by Corinthian will see an immediate 40% reduction in their balances — about $1,880 on average — with additional reductions likely in the future. All students will see a 20% tuition reduction. And those enrolled in poor-performing programs can seek a full refund or transfer into another program. … Corinthian has been on a downward spiral since last summer, when the U.S. Department of Education restricted its access to federal student aid amid concerns that the company had falsified student job placement data. Read More ›

CFPB Lawsuit: Sprint Made Millions Off Consumers Acting As A “Breeding Ground” For Bill-Cramming

by Ashlee Kieler, Consumerist

sprint logo

The CFPB reports that most affected Sprint customers were initially targeted by the third-party products online. “Consumers clicked on ads that brought them to websites asking them to enter their cellphone numbers,” officials with the CFPB say in a news release. “Some merchants tricked consumers into providing their cellphone numbers to receive ‘free’ digital content and then charged for it. Many others simply placed fabricated charges on bills without delivering any goods or communicating with consumers.” Read More ›

CFPB: College Credit Card Agreements On Decline; Debit, Prepaid Card Agreements Increase

by Ashlee Kieler, Consumerist

Now, instead of signing onto agreements for the more regulated credit cards, [banking institutions and colleges] are focusing on debit and prepaid cards, which generally have fewer consumer protections. In fact, a report from the Government Accountability Office earlier this year found there were at least 852 schools that had agreements with companies to market debit or prepaid cards to students in 2013. Read More ›

CFPB Stretches Bank Rules to Cover Prepaid Cards, Mobile Payments

by Sheryl Harris, The Plain Dealer (Cleveland, Ohio)

“Many of these prepaid consumers are living paycheck to paycheck, and are engaged in a constant battle to make ends meet,” said CFPB Director Richard Cordray in remarks prepared for a field hearing Thursday. “They are some of the most economically vulnerable among us, and most of them have no idea that the prepaid cards they choose to purchase are largely unregulated.” … Many prepaid card issuers broadened consumer protections and trimmed fees as they came under increased scrutiny from the bureau. Read More ›

CFPB Finds Older Consumers Face Illegal, Harassing Tactics from Debt Collectors

by Ashlee Kieler, Consumerist

A new report from the Consumer Financial Protection Bureau shines light on the issues older consumers face when it comes to their financial well-being. According to the report, which looked at older consumers’ complaints filed with the CFPB between July 2013 to September 2014, the number one issue Americans 62 years of age and older faced involved their experiences with debt collectors. The CFPB issued a consumer advisory including tips for older Americans faced with debt collection. Read More ›

The CFPB has only just begun tackling financial services in its first four years

by Ashlee Kieler, Consumerist

Four years ago, the Consumer Financial Protection Bureau was created as a safeguard to ensure the financial industry followed the rules when selling products and services to consumers – and a lot has happened since that time. From returning billions of dollars to consumers who were wrong by financial services to holding for-profit colleges accountable for their deceptions, the work of the CFPB has touched many areas of the financial world and it continues to expand. While the CFPB has provided assistance to millions of consumers in its short time, there is undoubtedly more issues to be addressed. Read More ›

Nasty surprise for some student loan borrowers

by Herb Weisbaum, CNBC

Students who take out private loans to pay for college could face a nasty surprise if their co-signer dies or files for bankruptcy: The lender may suddenly demand the loan be paid in full—or even worse, put that loan in default—even though all payments are being made on time. The Consumer Financial Protection Bureau issued a consumer advisory on Tuesday, warning borrowers that these “auto-default” clauses may be in their loan agreements and serious financial consequences could result. Read More ›

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