CFPB Report on Consumer Financial Law Compliance
Numerous types of violations by consumer lenders have been revealed in the first supervisory report issued by the Consumer Financial Protection Bureau (CFPB).
The CFPB has the authority to supervise both bank and nonbank financial institutions to assess whether or not they are following federal consumer financial law, to assess supervised institutions’ compliance systems, and to detect and assess risks to consumers.
According to The National Law Journal (subscription required), some of the violations committed by lending institutions during the supervision process included: raising the credit limit on credit cards issued to customers aged below 21 without the primary cardholder’s consent, inadequate training of staff on fair credit practices, and insufficient information provided to customers on the nature and expenses involved in the real estate settlement process.
Though no current remedial action was announced, the CFPB said in a press release that the agency might take public enforcement actions to ensure compliance with the law. Such actions have been taken in the past against companies such as Capital One, Discover, and American Express for deceptive practices that harmed consumers, reports The National Law Journal.