Posts Tagged ‘CFPB Enforcement’
On March 23, 2017, the CFPB announced in a press release that it had entered into a consent order with Experian to resolve allegations that the credit reporting agency had misrepresented the credit scores it marketed and sold to consumers. Under the terms of the consent order, Experian will pay a civil money penalty of $3 million. In addition, the CFPB ordered Experian to “truthfully represent” to customers how its credit scores are used and required it to implement an effective compliance management system.
On March 15, 2017, Nationstar Mortgage entered into a consent order with the CFPB to resolve alleged violations of the Home Mortgage Disclosure Act (HMDA). Nationstar will pay a $1.75 million civil money penalty for what the CFPB has termed “persistent and substantial reporting errors” that occurred between 2012 and 2014. According to the Bureau, this is the largest penalty for HMDA violations that the CFPB has imposed to date.
According to the consent order, Nationstar has “a history of HMDA non-compliance” which dates back to November 2011 when Nationstar entered into a consent order with the Massachusetts Division of Banks for violations related to HMDA and Regulation C.
Earlier this week, House Financial Services Committee Chairman Jeb Hensarling circulated a memorandum to committee leaders outlining potential upcoming changes to the Financial CHOICE Act that will be introduced during the 115th Congress.
Those proposed changes would affect several significant aspects of the Dodd-Frank Act, such as providing regulatory relief for strongly capitalized banks, taking steps to end “too big to fail,” and drastically reducing the CFPB’s authority.
On February 7, 2017, the CFPB and New York Attorney General filed a lawsuit against a New Jersey-based law firm and its owner for allegedly engaging in deceptive business practices and false advertising that lured 9/11 first responders and NFL concussion victims into obtaining costly cash advances on lawsuit and settlement payouts.
New York Attorney General, Eric Schneidermann, stated that the defendants “used deceptive tactics to charge unlawfully high interest rates for advances on settlement and compensation funds, allowing them to profit off the backs of these unsuspecting individuals.”