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On May 2, the CFPB published its Spring 2022 Prudential Highlights. The report’s findings, which generally cover reviews conducted between July and December 2021, are published to help institutions and the general public better understand how we review institutions to comply with federal supervisory laws. consumer finance. Highlights include the following findings:
- Auto service companies allegedly engaged in unfair, deceptive, or abusive acts or practices, such as wrongful repossessions, misleading consumers about final loan payment amounts, and overcharging for add-on products.
- Consumer information companies were known to accept information from companies providing consumer data, even though there were many signs that these providers were unreliable.
- Businesses have been found to violate the Fair Debt Collection Practices Act and the Consumer Financial Protection Act, for example by using false or misleading statements in debt collection.
- The financial institutions were accused of breaching Regulation E, including failing to: (i) remove a duplicate hold on an account; (ii) honored a request for payment on time; (iii) investigate errors; and (iv) provide notice to consumers regarding the Notice of Revocation of Provisional Credit.
The report also highlighted that:
- Remittance providers have engaged in deceptive acts or practices by making false and misleading representations of “instant” and “30 second” transfers, even though transfers may not be completed in 30 seconds or may otherwise be delayed, often up to 48 hours.
- Student loan servicers misled consumers by failing to issue incentive payments offered in their contract advertisements and by failing to issue timely payment repayments in response to loan modifications.
put into practice: This report confirms the CFPB’s scrutiny of participants in markets such as student loans, credit reports, money transfers and auto loans. As the CFPB conducts future reviews, the issues identified in the latest oversight highlights will likely be a recurring theme in future CFPB enforcement actions.
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