CFPB Has Recovered $14 Million for Consumers in 2017
The Consumer Financial Protection Bureau released a report yesterday detailing the success of its investigative efforts. The Bureau has recovered a total of $14 million for consumers in the first half of 2017, helping over 104,000 people.
The CFPB oversees a variety of financial institutions, from auto lenders to credit card issuers to debt collection agencies. Between January and June 2017, the Bureau found:
- Debt collectors did not confirm they were contacting the proper people before pursuing a debt.
- Credit card companies did not disclose the fees associated with pay-by-phone services, and did not tell customers there were cheaper payment options available.
- Banks falsely portrayed the way checking account fees could be waived. They told customers the fees would be covered after making 10 or more payments from a checking account, but only debit card transactions were considered.
- Mortgage lenders charged customers for application fees before the customers agreed to the transaction.
- Auto lenders repossessed vehicles after the repossession order was supposed to be cancelled.
The CFPB attempts to directly work with the companies to resolve matters without going to court. The Bureau will ask the company to “send refunds to consumers, pay restitution, credit borrower accounts, or take other remedial actions as appropriate.” If necessary, the Bureau may launch an investigation so law enforcement can step in.