Links in “CFPB”
- White House Validates CFPB’s Efforts to Protect Uninformed Consumers
Behavioral economics, the mindset that consumers are not rational decision makers and have certain frailties that lead them to make decisions that are not in their best interest and therefore need protection, got a big boost this week. President Obama issued an Executive Order that encourages federal agencies to apply behavioral science insights to "improve how information is presented to consumers." [9/18/15]
- What in the World was World Law Thinking?
$67 million later, World Law Group has assuaged the CFPB for its illegal debt collection practices. Specifically, charging illegal upfront fees and making false promises. [9/16/15]
- Inspector General: CFPB’s Complaint Database Gets a “Needs to Improve”
A report by the Fed's Office of the Inspector General finds areas where the accuracy and completeness of the CFPB's consumer complaint database should be improved. The report noted that the CFPB "has not established separate management controls to ensure the accuracy of data extracted from the system," adding that it "found several noticeable inaccuracies in our analysis." See also here. [9/16/15]
- CFPB Still Collecting Data on ODP Programs
Although the CFPB has a pre-rule action on overdraft protection programs scheduled for this Fall, it is not likely that this will happen as the agency is still actively collecting data. Last week it issued a request for information on POS and ATM disclosures and has now requested that the OMB conduct a national survey of 8,000 consumers in order to gain a better understanding of how and why consumers use overdraft protection services. [9/15/15]
- CFPB to Debt Collectors: Pay Up
Two of the nationâs largest debt buyers and collectors, Encore Capital Group and Portfolio Recovery Associates, were nailed by the CFPB for deceptive tactics to collect bad debts. The two companies must refund millions of dollars, cease collections on millions of dollars of debt, and rehaul their debt collection practices. [9/10/15]
- CFPB Angling to Survey Overdrafters
The CFPB is seeking approval to conduct a survey of 8,000 individuals about their ATM/debit card overdraft experiences. The survey will oversample respondents who are more likely to have experience with overdraft fees. [9/10/15]
- Two Largest Debt Buyers Hit with $79 Million Penalty
The CFPB alleges the nation's two largest debt buyers attempted to collect debt that was unsubstantiated or inaccurate, as well as filing lawsuits against consumers without having the documentation to prove their allegations. [9/10/15]
- A Look at the CFPB’s Technical Reports on Mortgages
The CFPB is issuing two technical reports on mortgage lending to support its policymaking activities. One is a national database of mortgages, and the other is a national survey of mortgage borrowers. [9/9/15]
- CFPB on Sneakers, Pre-teens and Teaching Financial Common Sense
The CFPB's blog takes on a financial literacy for preteens. The blog uses the case examples of buying sneakers and discusses the importance of the role parent's provide to their preteens regarding the skills needed for a strong financial foundation. Using provided examples presents the need to balance against the exposure of often-influenced youth from advertising and peer influences. [9/4/15]
- CFPB Focus on Auto Lenders Could Cause Higher Loan Prices
According to the Wall Street Journal, American Honda Finance Company, a unit of Honda Motor Company, recently reached a settlement with the CFPB and the Justice Department over discriminatory loan practices. Following the settlement, Honda lowered one portion of its loansâ interest rates, but then raised the price of another component. Similar overhauls may be expected from other major auto lenders. [9/2/15]
