CFPB Enforcement

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Argus Information and Advisory Services, a subsidiary of TransUnion, has agreed that it will not seek any government contracts with the CFPB for three years, following action by several government agencies.

Argus analyzes credit card and credit report data along with certain economic data to provide benchmarking and market analysis products to commercial and government clients.… Continue Reading

CFPB examiners have identified a variety of illegal practices across student loan markets, the bureau said, in a special edition of its Supervisory Highlights. The report covers alleged violations related to student loan refinancing, private lending and servicing, debt collection and federal loan servicing.

“Companies break the law when they mislead student borrowers about their protections or deny borrowers their rightful benefits,” CFPB Director Rohit Chopra, said, as he released the report.… Continue Reading

Some credit card companies operating rewards programs may be violating the law by failing to provide promised rewards, the CFPB said, in a circular to law enforcement agencies.

“When credit card issuers promise cashback bonuses or free round-trip airfares, they should actually deliver them,” CFPB Director Rohit Chopra said, in issuing the circular.… Continue Reading

The CFPB has taken action to permanently ban Student Loan Pro and its owner, Judith Noh, from offering consumer financial products or services.

In a complaint, filed in the U.S. District Court for the Central District of California, the CFPB alleged that Student Loan Pro and Noh violated federal law when they charged borrowers upfront fees to file paperwork to access free debt-relief programs available to consumers with federal student loans.… Continue Reading

The CFPB has taken action against Global Tel Link Corporation (GTL) over allegations that the company took millions of dollars from a half-million accounts and blocked money transfers to consumers who are incarcerated. Those prisoners relied on those funds for food, medicine and clothing.

The CFPB is ordering GTL and its subsidiaries to stop the allegedly illegal activity, pay at least $2 million in redress to victims and pay $1 million civil monetary penalty.… Continue Reading

A panel of the Fifth Circuit Court of Appeals has set March 30, 2025 as the effective date of the CFPB’s payday lending rule.

The panel had previously set a date 286 days “from the resolution of the appeal” as the effective date, but it was not clear when that period would start.… Continue Reading

FirstCash, a national pawnshop chain, cannot use the “bona-fide error defense” in its defense of a Military Lending Act (MLA) suit filed by the CFPB against the company, a federal judge has ruled in a case of first impression.

The Act’s bona-fide error defense protects the defendants from civil liability to a person, Judge Mark Pittman of the U.S.… Continue Reading

Following lengthy litigation, the CFPB is attempting to close the books on its case against Townstone Financial alleging discriminatory lending practices and redlining African American neighborhoods in Chicago.

If the proposed order submitted by the CFPB is approved by the U.S. District Court for the Northern District of Illinois, Townstone would be prohibited from taking any actions in connection with offering or providing mortgage loans that violate the Equal Credit Opportunity Act (ECOA) and would be required to pay a $105,000 penalty to the CFPB’s victims relief fund.… Continue Reading

The CFPB recently took action against VyStar Credit Union in connection with allegations that the credit union “botched” its rollout of a new online banking system.

In May 2022, VyStar transitioned to a new online banking platform that the CFPB said was dysfunctional because it made it difficult for credit union members to perform basic banking functions for weeks, with some features unavailable for more than six months.… Continue Reading