Consumer Financial Protection Bureau

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Apple, Goldman Penalized $89M Over 'New Kind of Credit Card'

Regulators say companies inflicted 'real harm' to thousands of consumers with Apple Card

(Newser) - Government regulators on Wednesday ordered Apple and Goldman Sachs to pay a combined $89 million in penalties and restitution for misleading consumers about the Apple Card and mishandling their complaints. The Consumer Financial Protection Bureau said its investigation found the partners violated the Consumer Financial Protection Act and the Truth...

Watchdog Finds Parents Surprised by School Lunch Fee

There's a way around the charge, report says, but not much transparency about it

(Newser) - Rebecca Wood, 45, was already dealing with high medical bills in 2020 when she noticed she was being charged a $2.49 "program fee" each time she loaded money onto her daughter's school lunch account. As more schools turn to cashless payment systems, more districts have contracted with...

Feds Move to Ban Medical Debt From Credit Reports

Rule change would prohibit lenders from evaluating it when dispensing loans

(Newser) - The Biden administration announced new rules Tuesday that would prevent medical debt from factoring into whether someone qualifies to rent an apartment, buy a car, or take on a mortgage. The Consumer Financial Protection Bureau said the changes would remove medical bills from credit reports and prevent lenders from making...

SCOTUS Sides With CFPB, Turns Back Conservative Attack

Reverses lower court's ruling on consumer bureau's funding

(Newser) - The Supreme Court on Thursday rejected a conservative-led attack that could have undermined the Consumer Financial Protection Bureau, reports the AP . The justices ruled 7-2 that the way the agency is funded doesn't violate the Constitution, reversing a lower court. The CFPB was created after the 2008 financial crisis...

Huge Credit Card Late Fees May Be Going Away

New regulation capping late charges at $8 goes into effect in spring, but banks will likely push back

(Newser) - Back in October, the White House announced an ambitious initiative to get rid of rampant junk fees, including in the banking industry. On Tuesday, the Consumer Financial Protection Bureau announced a big move toward that end, with a new regulation that will significantly reduce the late fees that customers have...

Feds Order Bank of America to Pay $250M in New Scandal

CFPB says bank charged junk fees, withheld bonuses, opened fake accounts

(Newser) - Bank of America must pay more than $100 million to customers for doubling up on some fees, withholding reward bonuses, and opening accounts without customer consent, reports the AP . Bank of America will pay $90 million in penalties to its organization and $60 million in penalties to the Office of...

Supreme Court to Decide Fate of Consumer Watchdog

GOP-led states call Consumer Financial Protection Bureau a 'failed experiment'

(Newser) - The Supreme Court said Monday it will take up a Republican-led challenge to the Consumer Financial Protection Bureau, a case that could threaten how the consumer watchdog agency functions. It is the second time in three years that the justices will be examining the federal agency, which was created in...

Feds Impose Massive Penalty on Wells Fargo

Bank will remain in regulators' crosshairs for foreseeable future

(Newser) - Megabank Wells Fargo has been ordered to pay $3.7 billion in a settlement with the Consumer Financial Protection Bureau. Per NBC News , the action includes $1.7 billion in civil penalties; the rest is restitution for millions of consumers who have been ripped off in various ways since 2011....

Under Old Watchdog Chief: 2 to 4 Enforcements a Month. Now: Zero

No enforcement action in the Consumer Financial Protection Bureau in 135 days and counting

(Newser) - In the 135 days since the Trump administration took control of the nation's consumer watchdog agency, it hasn't recorded a single enforcement action against banks, credit card companies, debt collectors, or any finance companies whatsoever. That's likely no fluke: Mick Mulvaney, appointed acting director of the Consumer...

2 Memos From 2 Bosses Reveal Chaos at Agency

The CFPB currently has 2 interim directors, and they both showed up for work on Monday

(Newser) - So how goes life as an employee of the Consumer Financial Protection Bureau on Monday? Two memos cited by the Washington Post tell the tale:
  • From the boss: “I hope that everyone had a great Thanksgiving. With Thanksgiving in mind, I wanted to take a moment to share my
...

Federal Agency Has Dueling Directors, and One's Suing

Monday is likely to be a chaotic day at the Consumer Financial Protection Bureau

(Newser) - Monday is likely to be a chaotic day at the Consumer Financial Protection Bureau: The federal agency now has two dueling directors , and they both say the law is clearly on their side. Leandra English, who was set to become acting director after the early departure of Richard Cordray , filed...

It's Unclear Who Will Be in Charge of US Agency Come Monday

Trump, outgoing director appoint dueling heads of Consumer Financial Protection Bureau

(Newser) - While consumers were fighting over fancy televisions on Black Friday, the US government was fighting over consumers. The New York Times reports Richard Cordray suddenly left his position as director of the Consumer Financial Protection Bureau on Friday—a week ahead of schedule. One of his final moves before heading...

Head of Consumer Agency Reviled by Republicans Is Leaving

Richard Cordray to resign, giving Trump chance to reshape CFPB

(Newser) - Richard Cordray, the first director of the Consumer Financial Protection Bureau, said Wednesday he will leave the position by the end of the month. The resignation of Cordray, who was appointed by then-President Obama, will give President Trump a chance to appoint his own director of the powerful agency established...

CFPB Chief: Senate Vote a 'Giant Setback for Every Consumer'

GOP senators (and VP Mike Pence) just made it harder for consumers to sue financial institutions

(Newser) - A rule that would have offered consumers a powerful tool against financial institutions by allowing them to join together to sue saw its demise Tuesday night at the hands of Senate Republicans. The New York Times and Wall Street Journal report that, by a vote of 51 to 50 (with...

Equifax Security Chief's Degree Was in Music

She is one of 2 senior execs stepping down

(Newser) - Two senior Equifax execs have stepped down as the investigation of what may be the biggest data breach in US history continues. The credit-reporting firm says security chief Susan Mauldin and chief technology officer David Webb are retiring effective immediately, the New York Times reports. After the leak that exposed...

Something New for Users of Prepaid Cards: Basic Protection

Feds bring in new rules for fast-growing industry

(Newser) - Federal regulators announced new rules Wednesday governing the quickly growing prepaid debit card industry, an effort more than two years in the making that should bring basic account protections to its customers, who are often financially disadvantaged. Prepaid debit card issuers will have to provide their customers with basic account...

5.3K Wells Fargo Workers Fired for Creating Fake Accounts

Employees got bonuses; customers got extra fees

(Newser) - Wells Fargo has been slapped with a record $185 million penalty over a scam carried out by its own employees—5,300 of whom were fired. The Consumer Financial Protection Bureau says Wells Fargo workers trying to reach sales targets opened around 2 million phony deposit or credit card accounts,...

Feds Aiming Crackdown at 'Chameleon' Lenders

Consumer Financial Protection Bureau steps in to end 'black hole' of debt

(Newser) - Payday loans can lead to what one borrower describes to the New York Times as a "black hole," with one high-interest short-term loan leading to another as borrowers struggle to repay the money. While state laws have targeted the problem, federal agencies have stayed out of the matter—...

Students Default on Loans Over Obscure Provision

... even if they've been paying on time

(Newser) - Because the nation's student-debt situation wasn't enough of a mess: A new federal report warns that some students are going into default even when they've been paying back their loans on time, reports USA Today . It's because of an obscure provision covering private student loans—if...

AmEx to Cough Up $75M Over Deceptive Practices

335K consumers will get refunds for credit card add-on programs

(Newser) - American Express has agreed to pony up $75.7 million over what the Consumer Financial Protection Bureau is calling "deceptive marketing to sell credit card add-on products," reports the LA Times . Some $59.5 million of that will go toward refunds to the 335,000-plus consumers who were...

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