The Consumer Financial Protection Bureau has issued a new “Supervisory Highlights,” describing recent supervisory activity in the areas of auto mobile loan origination, automobile loan servicing, debt collection, mortgage origination, mortgage servicing, student loan servicing and fair lending. The reported findings reflect information obtained from supervisory activities completed between May 2016 and August 2016.
The CFPB explains:
CFPB supervisory reviews and examinations typically involve assessing a supervised entity’s compliance with Federal consumer financial laws. When Supervision examinations determine that a supervised entity has violated a statute or regulation, Supervision directs the entity to implement appropriate corrective measures, such as refunding moneys, paying of restitution, or taking other remedial actions.
Recent supervisory resolutions have resulted in total restitution payments of approximately $11.3 million to more than 225,000 consumers during the review period. Additionally, CFPB’s supervisory activities have either led to or supported two recent public enforcement actions, resulting in over $28 million in consumer remediation and an additional $8 million in civil money penalties.
Specific findings in the report include
• Some student loan servicers unfairly denied or failed to approve qualified students’ affordable payment plans.
• Some auto loan servicers illegally kept borrowers’ belongings after repossessing cars.
• Some debt collectors charged illegal payment processing fees and made misleading collection calls about consumers’ credit scores or reports.