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CFPB Enforcement

Please also see our Recent Government Enforcement Actions page.

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May 31, 2023

One of the largest non-depository personal installment lenders in the country, OneMain Financial, has been ordered to pay $20 million in penalties and restitution for tricking borrowers into signing up for optional products and failing to refund interest on purchases they claimed were fully refundable.  As part of the settlement, OneMain was also ordered to adjust its cancellation policies.  CFPB

May 23, 2023

Rhode Island-based Citizens Bank, one of the 15 largest banks in the country, has agreed to pay a $9 million fine to the CFPB’s victim relief fund in order to resolve allegations of violating consumer financial protection laws.  Citizens Bank allegedly failed to inform consumers of the status of disputed credit card charges, failed to investigate claims of unauthorized charges, and failed to issue refunds for fees arising from the charges.  CFPB

March 23, 2023

One of the largest debt collectors in the country, Portfolio Recovery Associates, will pay more than $24 million to settle claims that it violated the Fair Debt Collection Practice Act, the Consumer Financial Protection Act, and a 2015 CFPB order by continuing to employ illegal debt collection tactics.  According to the press release, some of the illegal tactics used included threatening consumers with legal action or initiating debt collection lawsuits while failing to possess proper documentation about debts; failing to timely send documentation about debts, resolve disputes, or inform consumers about investigation outcomes; and collecting and suing on debts beyond statutes of limitations.  CFPB

February 23, 2023

A collection of corporate entities known as TitleMax has been ordered to pay a $10 million civil monetary penalty and $5 million in consumer relief for defrauding military families and other consumers while providing auto title loans.  TitleMax, which extends short-term, high-cost loans secured by auto titles, was found to have charged consumers nearly three times over the 36% annual interest rate cap.  This is not the first time TitleMax has been accused of similar misconduct; in 2016, the company was ordered to pay a $9 million penalty to settle similar charges.  CFPB

December 20, 2022

Wells Fargo will pay a $1.7 billion penalty, and more than $2 billion in consumer restitution, following findings by the CFPB that the bank engaged in unlawful conduct including the imposition of improper fees and interest charges on auto and mortgage loans, misapplication of payments on such loans, and the imposition of unlawful surprise overdraft fees.  Wells Fargo’s failures in its servicing of auto loans resulted in the wrongful repossession of borrowers’ vehicles, and its improper denial of mortgage modifications led to some customers losing their homes to wrongful foreclosures.  According to the CFPB, the bank knew about problems in its account management and servicing for years before it took steps to correct them.  CFPB

September 28, 2022

Alabama-based Regions Bank, which operates thousands of branches and ATMs across 16 states, has been ordered to pay $50 million to the CFPB’s victims relief fund and refund at least $141 million to customers, after the CFPB found it charged surprise overdraft fees to customers told they had sufficient funds.  Leadership was also found to have known about the illegal practice long before it ended in 2021, but chose to wait until they could make up the revenue, which made up 17.7% of their non-interest income, in other ways.  CFPB

May 4, 2022

Bank of America has been ordered to pay a $10 million civil penalty for processing illegal, out-of-state garnishment orders totaling nearly $600,000 against 3,700 customers’ bank accounts beginning in 2011.  According to the CFPB, the bank deceived customers about their rights, imposed unenforceable clauses, and failed to adhere to consumer protections governing customer bank accounts.  As part of the resolution, the nation’s second largest bank must also fix its broken garnishment process and eliminate unenforceable clauses from its contracts.  CFPB

December 22, 2020

Student loan servicer Discover Bank, together with its affiliates the Student Loan Corporation and Discover Products, Inc., will pay a $25 million penalty and at least $10 million in consumer redress to resolve allegations that the bank violated a 2015 Consent Order by failing to provide the consumer redress that order required and by continuing to misrepresent minimum loan payments, and also misrepresenting the amount of interest consumers paid and other material information including interest rates, payments, due dates, and the availability of rewards, among other things.  The CFPB also found additional unfair acts and practices by defendants, including unauthorized payment transfers.  CFPB

December 22, 2020

Santander Consumer USA Inc., which originates and services non-prime auto loans, was found to have violated the Fair Credit Reporting Act by providing erroneous consumer loan information to credit reporting agencies between 2016 and 2019.  A CFPB Consent Order requires the bank to pay a $4.75 million monetary penalty and undertake specific compliance steps.  CFPB

December 7, 2020

The largest non-bank mortgage servicer in the country, Nationstar Mortgage, has agreed to pay $79.2 million in restitution to over 55,000 borrowers in all 50 states and the District of Columbia who were harmed by the lender’s noncompliance with numerous laws, including the Consumer Financial Protection Act of 2010, Real Estate Settlement Procedures Act (RESPA), and Homeowner’s Protection Action of 1998 (HPA), from 2011 to 2017.  Additionally, Nationstar will pay another $7.1 million in costs and penalties to government parties.  CFPB; DOJ; CA AG; NY AG; PA AG
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