WASHINGTON (Legal Newsline) – The Consumer Financial Protection Bureau (CFPB) announced Oct. 31 a Supervisory Highlights report that shows how the agency’s recent supervisory actions have returned more than $11 million to more than 225,000 consumers allegedly harmed by college loan servicers.
In the report, the CFPB
details student loan servicer violations that include failing to enroll
qualified borrowers in affordable federal loan repayment plans and issuing
updated procedures for student loan servicing exams. Additional violations were
found in auto loan origination and servicing businesses as well as debt
collection and mortgage origination companies.
“Our examiners continue to
find sloppy or callous practices among some student loan servicers and other
financial institutions that violate the law and put consumers at risk,” CFPB Director Richard Cordray said. “If their practices hurt consumers, they need to
rethink and change their practices in light of the actions and observations
found in this report.”
The CFPB supervises banks
and credit unions that have more than $10 billion in assets under authorization
from the Dodd-Frank Wall Street Reform and Consumer Protection Act. The law also
allows the CFPB to supervise certain nonbanks, including mortgage companies,
private student lenders and payday lenders.