The CFPB publishes the highlights of summer surveillance

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The CFPB has released its summer 2021 surveillance highlights, which detail its surveillance and enforcement actions in the areas of auto loan servicing, consumer reporting, debt collection, deposits, equity loans, mortgage origination and servicing, payday loans, private education loan origination and loan servicing. The report’s findings, which are released to help entities comply with applicable consumer laws, cover reviews that were typically conducted between January and December 2020. Highlights of the review findings include:

  • Auto loan service. Bureau examiners identified acts or unfair practices related to collateral protection insurance (CPI) placed by the lender, including instances where service agents charged unnecessary CPIs or charged CPIs after the takeover. of possession. The reviewers also identified unfair acts or practices related to refund amounts when consumers had ancillary product discounts owed, and also found unfair or deceptive acts or practices related to the payment request.
  • Consumption reports. The Bureau noted deficiencies in Consumer Reporting Companies (CRCs) compliance with the FCRA regarding the following requirements: (i) accuracy; (ii) security freezes applicable to certain CRCs; and (iii) requests to block identity theft. Specifically, the reviewers found that CRCs continued to include information from suppliers despite receiving responses to supplier disputes that “suggest that suppliers are no longer reliable and verifiable sources of consumer information.” . Additionally, the report noted instances where suppliers failed to update and correct information or conduct reasonable investigations into direct disputes.
  • Debt recovery. The report found that examiners found instances of FDCPA violations where debt collectors (i) made calls to a consumer’s workplace; (ii) communicated with third parties; (iii) failed to stop communications after receiving a written request or refusal to pay; (iv) consumers harassed about their inability to pay; (v) disclosed and threatened to disclose false credit information to CRCs; (vi) made false statements or used deceptive means of collection; (vii) entered inaccurate information regarding government interest rate ceilings into an automated system; (viii) illegally initiated wage garnishments; and (ix) did not send the complete validation notices.
  • Deposits. The Board discussed violations related to Regulation E and Regulation DD, including violations of error resolution, issues with interim appropriations, failure to investigate, failure to correct errors and membership violations. and overdraft disclosure.
  • Fair loan. The report noted instances where reviewers cited violations of the HMDA / Regulation C involving inaccuracies in the HMDA loan application register, and instances where lenders, among others, violated the ECOA / Regulation B ” by engaging in acts or practices directed against potential candidates that would have discouraged reasonable candidates. people from minority neighborhoods in metropolitan statistical areas (MSA) to apply for credit.
  • Mortgage assembly. The Bureau cited violations of Regulation Z and the CFPA relating to principal indemnity, title insurance disclosures, and deceptive waivers of borrower rights in collateral riders and loan agreements. loan guarantee.
  • Mortgage service. The Bureau cited violations of Regulation X, including those related to double-tracking violations, misrepresentation of lockout deadlines, and PMI terminations.
  • Payday loans. The report discussed violations of the CFPA for payday lenders, including the misrepresentation of an intention to sue or that a credit check would not be performed, and the presentation of deceptive repayment options to borrowers who were contractually eligible for no-cost reimbursement plans.
  • Origination of private education loan. Bureau examiners have identified deceptive acts or practices related to the marketing of private education loan rates.
  • Student loan service. Bureau examiners uncovered several types of false statements made by officers regarding consumer eligibility for the Public Service Loan Forgiveness Program (PSLF) and identified unfair acts or practices related to “failure of a consumer.” agent to reverse the negative consequences of automatic abstentions in natural disasters ”. Additionally, the reviewers identified unfair acts or practices related to failure to follow instructions for awarding payments to consumers or providing inaccurate monthly payment amounts to consumers after a loan transfer.


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