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Credit Grantors

A credit grantor is any individual or business that extends credit to customers. The credit can be for other businesses or consumers and can come in many forms, such as closed-end loans (like auto loans, mortgages, and student loans), revolving loans (like credit cards or certain home equity loans), or a hybrid of the two. Some credit is backed by property or assets.

In the U.S., the primary credit grantors are large commercial banks and credit unions. But credit is also extended by small businesses, governments, and other organizations.

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GE Capital/Synchrony Bank to Pay $225 million in CFPB Credit Card Discrimination Action

The Consumer Financial Protection Bureau (CFPB) today announced that it is ordering GE Capital Retail Bank, now known as Synchrony Bank, to provide an estimated $225 million in relief to consumers harmed by illegal and discriminatory credit card practices. The CFPB said it is the federal government’s largest credit card discrimination settlement in history.

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CFPB, Other Feds, and State AGs Announce $1 billion Mortgage Servicing Action

The CFPB and attorneys general in 49 states and the District of Columbia filed a proposed federal court order requiring SunTrust Mortgage, Inc. to provide $500 million in loss-mitigation relief to underwater borrowers. The order also requires SunTrust to pay $40 million to approximately 48,000 consumers who lost their homes to foreclosure and $10 million to the federal government.

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Did Debt Buyers Fall Victim to One Corrupt Bank Official? Or Is it More?

The bank official at the center of yesterday’s bribery charges against a debt buyer just happens to be the same executive who late last year pled guilty to accepting bribes from another ARM company. So what’s going on here? Is bribery an unspoken part of the debt collection industry, or did a single corrupt bank officer lure a couple of bad actors into his web?

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FTC’s Recent Enforcement Action Sets New Debt Collection Standards

Buried in the FTC’s announced settlement with an auto lender last week over debt collection practices was a seemingly new set of standards for debt collectors. The directives addressing FCRA and debt collection compliance suggest regulators are toughening certain standards and, in some cases, creating entirely new standards for certain debt collection activities.

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FTC in $5.5 million Debt Collection Settlement with Auto Lender/ARM Firm

The FTC announced a settlement with a national subprime auto lender and debt buyer/collector that will see the company pay $5.5 million in penalties, refunds, and account adjustments. The charges relate to the firm’s collection practices on its own accounts and loans it was servicing as a third party. Combined with a recent announcement from the CFPB, it could signal increased scrutiny on the auto lending and collection market.