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.