Since yesterday we’ve done additional analysis of the data to look at how debt collection companies are responding. Of the 2,246 debt collection complaints with consumer narratives, 1,310 of them included one of the nine newly proscribed public response categories. Almost 30% of those were “we choose not to respond.”
The CFPB has gone live with an enhanced public-facing consumer complaint database that includes over 7,700 consumer accounts of problems they are facing with financial companies. Of those related to debt collection, 30% are assigned to an “other” category, and 25% have no assigned sub-category.
Among other things, the report indicates that the non-public supervisory actions and self-reported violations at banks and nonbanks during the period in question resulted in $11.6 million in remediation to more than 80,000 consumers.
Today Rohit Chopra, the Consumer Financial Protection Bureau (CFPB) Student Loan Ombudsman – who also just announced he is stepping down after next week - released a report finding high rates of consumers are being rejected for co-signer release on their private student loans, based on its review of industry practices. The Bureau uncovered problematic industry practices that may […]
Yesterday, the CFPB announced an enforcement action against a medical debt collection company for mishandling consumer credit reporting disputes and preventing consumers from exercising important debt collection rights. The company is ordered to provide over $5.4 million in relief to harmed consumers, and pay a $500,000 penalty. At the core is a lack of adequate policies and procedures.
When discussing debt collection, word choices in the report were interesting. The Bureau noted that “Many companies in the industry play by the rules.” Not “Most” companies play by the rules. Clearly the ARM industry has not yet convinced the CFPB that most companies do, in fact, play by the rules.
Yesterday the Consumer Financial Protection Bureau (CFPB) announced it was taking action against a lender that focused on making automobile loans to servicemembers. The CFPB alleges that Security National Automotive Acceptance Company, LLC, an Ohio based auto finance company, regularly engaged in prohibited, aggressive debt collection tactics against servicemembers and used a combination of illegal […]
Yesterday the Consumer Financial Protection Bureau (CFPB) published a rule that will allow the agency to supervise larger nonbank auto finance companies for the first time. The CFPB already supervises auto financing at the largest banks and credit unions. Yesterday’s rule extends CFPB supervision to any nonbank auto finance company that makes, acquires, or refinances 10,000 or more loans or leases in a year.
The SBREFA process is complicated and its workings may be of limited interest outside of administrative law practitioners, but it is a very important tool – and one of the few available – for financial service providers the CFPB has targeted for rulemaking.
Oral arguments on the Defendant’s Motion to Dismiss the CFPB action against the Georgia law firm Frederick J Hanna & Associates P.C. were held on June 3rd. The stakes are high, not only for the Hanna law firm, but also any law firm that handles a high volume of consumer debt collection matters. The case should be front and center for all law firms practicing in this space.