CFPB announces second enforcement action under Mulvaney

by Jeff Sovern

Here, against Security Group, Inc. As expected, the case involves debt collection problems but the Bureau also found FCRA issues. Here's an interesting thing about the case: remember how Mulvaney suggested that enforcement actions ought to be based on the numbers of complaints received? Well, I ran the three names in the CFPB's announcement–Security Group Inc., Security Finance Corporation of Spartanburg and Professional Financial Services Corp.–through the complaint database and didn't come up with a single hit. It's possible that the Bureau received complaints about them that the consumers didn't agree to make public or that the Bureau received complaints about the company under another name, but it seems unlikely that the Bureau received many such complaints.  In any event, the Bureau seems not to be limiting enforcement actions to companies with a large presence in the complaint database.  It is encouraging that the Bureau has brought a case against a company besides Wells Fargo. But this still leaves Mulvaney bringing cases at a rate that is less than one for every ten cases brought under Cordray.


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