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CFPB Supervisory Highlights: Servicing and Collection of Consumer Debt

The Consumer Financial Protection Bureau (CFPB) has released its Supervisory Highlights Issue 34, focusing on the servicing and collection of consumer debt. This edition summarizes supervisory findings from April 1, 2023, to December 31, 2023, covering auto loans, student loans, debt collection, credit card account management, and deposit/prepaid accounts.

CFPB Auto Finance Supervisory Highlights Issue 35

The CFPB has released its Fall 2024 Supervisory Highlights, focusing on auto finance. The report details findings on origination disclosures, repossessions, servicing, add-on products, and furnishing deficiencies, highlighting a trend of significant violations. It also notes public enforcement actions within the auto finance market.

CFPB Supervisory Highlights: Student Lending

The CFPB has released its Supervisory Highlights Special Edition on Student Lending, Issue 36. This document details findings from supervisory examinations concerning private student loans, including issues with refinancing disclosures, illusory benefits, noteholder liability, illegal collection tactics, and federal loan servicing during the return to repayment.

CFPB Supervisory Highlights Issue 37

The Consumer Financial Protection Bureau (CFPB) has released Supervisory Highlights Issue 37, detailing recent findings in deposit accounts, furnishing, and short-term small dollar lending. The report highlights violations of the Fair Credit Reporting Act and unfair practices related to overdraft fees, with significant refunds issued by mortgage servicers and originators.

CFPB Orders Equifax $15M Penalty for FCRA Violations

The Consumer Financial Protection Bureau (CFPB) has ordered Equifax, Inc. and Equifax Information Services LLC to pay a $15 million civil money penalty for violations of the Fair Credit Reporting Act (FCRA). The order addresses failures in reinvestigating consumer disputes, preventing improper reinsertion of deleted information, and ensuring data accuracy.

CFPB Orders American Honda Finance $12.8M Penalty and Redress

The Consumer Financial Protection Bureau (CFPB) ordered American Honda Finance Corporation (Honda Finance) to pay a $2.5 million civil money penalty and $10.3 million in consumer redress. The order addresses violations of the Fair Credit Reporting Act (FCRA) related to inaccurate reporting of consumer payment deferrals during the COVID-19 pandemic.

CFPB Orders Wise US Inc. $450k Redress and $44,955 Penalty

The CFPB has amended a consent order against Wise US Inc., requiring the company to provide approximately $450,000 in consumer redress and pay a $44,955 civil money penalty. The order resolves violations related to deceptive marketing disclosures and failures to comply with EFTA and Regulation E requirements.

CFPB Fines Draper & Kramer $1.5M, Bans Mortgage Lending

The CFPB fined Draper & Kramer Mortgage Corporation $1.5 million and banned it from residential mortgage lending for violations of the Equal Credit Opportunity Act. The Bureau has since issued a no-action letter, ceasing monitoring and enforcement of the consent order due to the company ceasing operations and the Bureau's resource prioritization.

CFPB v. Synapse Financial Technologies - Consumer Protection Enforcement

The CFPB has taken enforcement action against Synapse Financial Technologies, Inc. for alleged violations of the Consumer Financial Protection Act, resulting in a $1 civil money penalty and injunctive relief. The action stems from Synapse's failure to maintain adequate records of consumer funds, leading to a shortfall of $60-90 million and loss of access to funds for consumers.