Links in “CFPB”

World Acceptance Corporation, which extends small-dollar loans to individuals, then refinances them multiple times, has acknowledged that it is under investigation by the CFPB. Also see this earlier story on the CFPB's two-part investigation. [8/14/15]

Opinion piece in Esquire uses Citizens Bank "shoddy" deposit-processing practice as an example of why calls to abolish the CFPB are a mistake. [8/14/15]

A former attorney for the CFPB provides a glimpse of how the bureau thinks. Whereas other agencies may look for a pattern or a practice before taking action against a lender, the CFPB may give a single consumer complaint the weight of 10,000. "If you point out to them that you have 3 million consumer contacts and 100 consumer complaints are statistically irrelevant they don’t care. In the CFPB's mind, every single consumer matters." [8/13/15]

The CFPB issued a report that determined that mandatory arbitration clauses harm consumers. However, George Mason University has taken that report to task by finding that its comparison of class action settlements to arbitration awards was not the appropriate methodology to use and that, in fact, consumers fare better through arbitration than through class action settlements. [8/13/15]

It’s hard to believe, but for years Citizen’s Bank had a policy that it would keep any discrepancies between the amount noted on the customer’s deposit ticket and the actual amount of the deposit based on the total of the cash and checks for small transactions. Over the years those small discrepancies amounted to about $11 million dollars in additional revenue to the bank. Now the CFPB says, “Give it back!” [8/13/15]

Citizens Bank of Pennsylvania has been charged by not one federal agency, but three. The CFPB, OCC, and FDIC have joined together to charge the bank for deceptive deposit practices. The bank will pay a total of $11 million in restitution and $20.5 million in federal penalties. [8/13/15]

The "unfair and deceptive" practice of sometimes pocketing the difference when there was a discrepancy between the size of the deposit and the number written on the deposit slips will cost Citizens Bank $14 million in restitution and $20.5 million in federal penalties. "This is sloppy banking," said CFPB Director Richard Cordray. [8/13/15]

The CFPB's own study is flawed, but even its own findings show arbitration works. [8/12/15]

World Acceptance Corporation, one of the largest consumer finance companies in the country, has plunged 22% in its shares. The cause of this drop is due to the CFPB, who may be taking legal action against World. [8/11/15]

Under new bankruptcy rules proposed by the CFPB, the periodic statement could become substantially more costly to management and deliver. [8/10/15]