Washington, D.C. – The Consumer Financial Protection Bureau (CFPB) today announced it is suing Sprint for “cramming” – the illegal practice of putting unauthorized third-party charges on consumers’ phone bills.
The lawsuit alleges that Sprint set up a billing system that allowed third parties to “cram” tens of millions of dollars in unauthorized charges on wireless bills. The CFPB is seeking refunds for affected consumers and penalties to deter this practice in the future. «Read the rest of this article»
Washington, D.C. – Consumers Union, the advocacy arm of Consumer Reports, today sent a letter to the Consumer Financial Protection Bureau about problems with credit reports and credit scores, including the challenges consumers face in correcting errors on their reports.
Pamela Banks, senior policy counsel for Consumers Union, said, “Credit report errors are far too common and consumers are paying a high price for scores that are likely not used in the marketplace.” «Read the rest of this article»
Written by Terri Moon Cronk
DoD News, Defense Media Activity
Washington, D.C. – Defense Secretary Chuck Hagel has directed a policy change in new paycheck allotments to prevent unscrupulous commercial lenders from taking advantage of troops and their families, Pentagon officials said today.
According to a Defense Department news release published today, effective January 1st, 2015, the change in DoD’s Financial Management Regulation will prohibit service members from allotting pay to buy, lease or rent personal property, a senior DoD official said. «Read the rest of this article»
One in Four American Workers May Be Eligible For Student Debt Forgiveness
Washington, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) launched a toolkit to empower school districts and other public service organizations to help their employees pay off student loan debt. The CFPB is asking these employers to make a pledge to inform their employees of their options.
Up to a quarter of the U.S. workforce is in public service and may be eligible for existing student loan debt forgiveness programs, according to a CFPB report also released today. «Read the rest of this article»
Iowa City, IA – Today, we’re issuing one of our most important rules to date, the Ability-to-Repay rule. It’s designed to assure the reliability of mortgages – making sure that lenders offer mortgages that consumers can actually afford to pay back. This is a simple, obvious principle that needs to be cemented in the housing market.
In the run-up to the financial crisis, we had a housing market that was reckless about lending money. Lenders thought they could make money on a loan even if the consumer could not pay back that loan, either by banking on rising housing prices or by off-loading the mortgage into the secondary market. This encouraged broad indifference to the ability of many consumers to repay loans, which dramatically increased mortgage delinquencies and rates of foreclosures. «Read the rest of this article»
Federal Regulators Fine American Express an Additional $27.5 Million
Washington, D.C. – The Consumer Financial Protection Bureau (CFPB) today announced an enforcement action with orders requiring three American Express subsidiaries to refund an estimated $85 million to approximately 250,000 customers for illegal card practices.
This action is the result of a multi-part federal investigation which found that at every stage of the consumer experience, from marketing to enrollment to payment to debt collection, American Express violated consumer protection laws. «Read the rest of this article»
Washington, D.C. – The Consumer Financial Protection Bureau (CFPB) announced a new rule giving the financial watchdog more oversight of credit bureaus, which generate billions of credit reports each year.
Beginning this fall, the CFPB will take a closer look at the 30 largest credit reporting agencies, including the big three — Experian, Equifax, and TransUnion —to ensure accuracy and compliance with the law. The move marks the first time that a federal agency will have a hand in overseeing the credit reporting industry. «Read the rest of this article»