The Consumer Financial Protection Bureau has been looking out for the little guy since the recession 10 years ago, and this year alone they've returned $14MN in restitution to consumers harmed by illegal business practices.
"Through supervision, the CFPB is putting an end to practices that harm consumers and taking proactive steps to prevent further violations." said CFPB Director Richard Cordray.
While the announcement doesn't directly call out specific companies, they do list out some of the ways businesses had been harming consumers, such as:
- Banks misleading customers on checking account and overdraft charges.
- Credit card companies deceiving customers on pay-by-phone options, and failing to disclose less costly options to consumers.
- Auto lenders repossessing cars that were wrongly listed as delinquent or had their repossessions cancelled.
- Third-party debt collectors reaching out to collect debt without properly getting consent, and even contacting the wrong people to collect said debt.
- Mortgage companies overcharging on closing fees and application fees.
- Mortgage companies not disclosing documents needed for certain applications, and failing to let borrowers know their application rights or other application options.
These are just a sample of the rulings that the CFPB has handed down over the years. The recent Equifax data breach has dredged up some criticism for the Bureau, as some would like to see its powers and rulings stripped away, such as their newly-minted arbitration clause that could be repealed under the Congressional Review Act.
If anything, the deliquency and bad behavior of large scale companies like Equifax reasserts the importance of demanding company accountability by the CFPB, it's becoming all too clear that these businesses will try to assuage liability and good practices any chance they get.
© New Kapitall Holdings LLC. All rights reserved. Kapitall Wire is a division of New Kapitall Holdings LLC. Kapitall Generation, LLC is a wholly owned subsidiary of New Kapitall Holdings LLC. Kapitall Wire, which is not a broker/dealer, offers free cutting edge content and commentary and is produced for informational purposes only and should not be construed as research. Kapitall Wire is a product offered by New Kapitall Holdings, however, KapGen compliance personnel will oversee all Kapitall Wire material prior to release.