The CFPB announced that it has entered into a “Joint Higher Education Memorandum of Understanding” with the Departments of Veterans Affairs (VA), Defense (DOD), and Education (ED) as part of a joint effort by the agencies “to prevent abusive and deceptive recruiting practices by schools serving servicemembers, veterans, spouses and other family members.” … Continue Reading
CFPB settles with military base retailer for alleged fee scam; Senators seek CFPB investigation of retailer’s debt collection practices
The CFPB has announced a settlement with USA Discounters, a retailer that operates a chain of stores near military bases and offers financing for purchases through retail installment sales contracts (RICs), to resolve charges involving an alleged fee scam. The consent order requires USA Discounters to make refunds to servicemembers of more than $350,000 and pay a $50,000 civil money penalty. … Continue Reading
CFPB issues second report on servicemember complaints
Earlier this month, the CFPB issued a press release describing its second snapshot report of complaints from military consumers. The report details complaints the CFPB has received from servicemembers, veterans, and their families and the measures it has taken in response. Between July 2011 and January 2014, the CFPB has received approximately 14,000 complaints, handling more than 250 complaints per week in the last fiscal quarter. … Continue Reading
CFPB participates on an interagency discussion on SCRA compliance and servicemember protection
On Monday September 10, the CFPB participated in an interagency discussion hosted by the Federal Reserve on servicemember protections and SCRA compliance. Representatives from the prudential regulators and the Department of Justice also participated in the webinar. Holly Petraeus, Assistant Director of the CFPB’s Office of Servicemember Affairs, kicked off the substantive portion of the discussion, highlighting what she identified as the two top issues facing military homeowners that were raised during her visits to roughly 35 military installations. … Continue Reading
CFPB hears from industry at forum on servicemembers
In September, we reported that the CFPB’s Office of Servicemember Affairs had issued a request for information about the consumer financial services and products and financial education opportunities being offered to servicemembers and their families. Last week, the CFPB used the responses it received to that request (which included responses from 43 credit unions, 8 banks and 2 non-bank financial institutions) to organize five panels who spoke at a Financial Fitness Forum held by the CFPB in Washington, D.C.… Continue Reading
Loans to servicemembers in the line of fire
It’s clear from the recent testimony to Congress of Holly Petraeus, Assistant Director of the CFPB’s Office of Servicemembers Affairs, that the CFPB is looking closely at various kinds of loans made to military personnel and their family members. One category of loans on the CFPB’s hit list are private student loans to finance tuition at for-profit schools.… Continue Reading