Although we thought an announcement that the CFPB had begun taking complaints about new products would be made at its field hearing on consumer complaints last week, that announcement was made today. The CFPB announced that it is now taking complaints from consumers about prepaid cards, such as gift cards, benefit cards, and general purpose reloadable cards. … Continue Reading
debt settlement
Guilty pleas entered in CFPB’s first criminal referral
By Marjorie J. Peerce on
Posted in CFPB Enforcement, Regulatory and Enforcement
The CFPB’s first publicly announced criminal referral has resulted in the entry of guilty pleas by a debt settlement company and its principal, according to a Reuters report. The referral, which was made to the U.S. Attorney for the Southern District of New York, arose out of the CFPB’s investigation of two debt-relief service providers and related entities and was announced by Director Cordray at a May 2013 press conference.… Continue Reading
CFPB brings enforcement action against debt settlement payment processor
By Alan S. Kaplinsky on
In the latest chapter of its “comprehensive effort to prevent consumer harm in the debt-settlement industry,” the CFPB has announced the settlement of an enforcement action brought against “a leading debt-settlement payment processor” and its CEO and owner. In its complaint, the CFPB alleged that the defendants had violated the Telemarketing Sales Rule by assisting and facilitating the charging of unlawful advance fees by debt-relief companies. … Continue Reading