WASHINGTON (Legal Newsline) — The Consumer Financial
Protection Bureau (CFPB) has announced its supervisory actions in the first
four months of 2016 revealed illegal auto finance and payment activity that led
to close to $24.5 million in restitution to more than 257,000 consumers.
The CFPB’s report also discusses issues in the business of
auto loan origination, debt collection, mortgage origination and small-dollar
“This report highlights our ongoing work to address
violations of the law and slipshod practices that endanger consumers,” said CFPB
Director Richard Cordray. “The bureau’s supervisors continue to perform
more and better oversight of these financial markets, and their report gives
the industry an opportunity to reflect on their practices before consumers are
made to suffer harm.”
The CFPB can look into mortgage companies, private student
lenders and payday lenders through authority granted via the Dodd-Frank Wall
Street Reform and Consumer Protection Act.
Issues found by the CFPB in an array of financial markets
include deception by auto lenders about loan terms, incorrect calculation of
loan financing amounts, failure to properly disclose interest on interest-only
loans, ineligible accounts sold to debt sellers, debt repayment options that
misled consumers, failure to provide adverse action notices, and illegal
requirements forcing consumers to use an affiliated business.