The Consumer Financial Protection Bureau announced recent supervisory actions which led to millions of dollars in restitution to consumers.
The actions were reported in the 12th edition of the CFPB’s Supervisory Highlights. The report covers activities between January 2016 and April 2016.
The report highlights issues CFPB examiners found through the agency’s examination of businesses in auto loan origination, debt collection, mortgage origination and small-dollar lending, according to a CPPB news release.
“This report highlights our ongoing work to address violations of the law and slipshod practices that endanger consumers,” CFPB Director Richard Cordray said in the release.
Recent nonpublic supervisory actions resulted in restitution of about $24.5 million to more than 257,000 consumers for auto finance and payments issues, according to the release.
CFPB supervisory activities also aided a recent public enforcement action that returned nearly $5 million to consumers and imposed an additional $3 million in civil penalties.
According to the release, examiners uncovered issues across a variety of financial markets, including:
• Deception by auto lenders about loan terms;
• Incorrect calculation of loan financing amounts by lenders;
• Failure to properly disclose interest on interest-only loans;
• Ineligible accounts sold to debt sellers due to coding errors;
• Consumers misled about debt repayment options;
• Failure to provide required adverse action disclosure notices to consumers; and
• Illegally requiring consumers to use an affiliated provider.
The report does not identify specific institutions, unless they were subject to public enforcement actions. The CFPB ordered corrective actions including better training for employees, improvements to how the businesses field and respond to consumer complaints, and the development of improved policies and procedures and enhanced monitoring systems to ensure compliance with federal rules, according to the release. The CFPB also has referred some exam findings for further action where appropriate.
The report is available for further review at http://www.consumerfinance.gov/policy-compliance/guidance/supervisory-highlights/.
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