The CFPB recently released its Fall 2021 Supervision Highlights, discussing the findings of its reviews regarding credit card account management, debt collection, equity loans, mortgage servicing, deposits, prepaid accounts and fund transfers.
This is the 25th edition of the CFPB Supervision Highlights and it covers reviews that were completed between January 2021 and June 2021. Some of the key findings from the Fall 2021 Supervision Highlights include:
- Fair loan. The CFPB found that some mortgage lenders violated the ECOA by discriminating against African-American borrowers and women in granting rate exceptions based on competitive offers. The reviewers noted that, among other things, lenders did not have a formal policy on the use of this exception, and relied on managers to promulgate a “verbal policy that a consumer must initiate or request an exception. price match with a competitor ”. The CFPB also said that lenders had unexplained statistically significant disparities in the incidence of pricing exceptions for African American and female applicants compared to similarly situated white and non-Hispanic male applicants. Additionally, the examiners found that some lenders improperly questioned the religion of small business applicants and factored an applicant’s religion into their credit decision, in violation of the ECOA and Regulation B.
- Mortgage services. The Bureau said that some mortgage agents have engaged in unfair acts or practices by (i) charging borrowers a delinquency-related fee under the CARES Act abstentions, (ii) assessing fees in excess of the actual cost of services rendered, and (iii) failing to terminate Electronic Funds Transfers (EFTs) after receiving notice that the consumer’s account had been closed and the consumer was charged insufficient funds. The reviewers also found that some providers incorrectly disclosed transaction and payment information in borrowers’ online mortgage accounts. In addition, the CFPB said it found violations of “Regulation X’s requirements to assess borrowers’ full loss mitigation requests within 30 days of receipt, Regulation Z’s requirements for overpayments on borrower escrow accounts and Homeowners Protection Act (HPA) requirements to automatically terminate private mortgage insurance[.]”
- Debt recovery. The CFPB found that various debt collectors partly tricked consumers into believing that restarting and completing a payment plan would improve the consumer’s creditworthiness when making final payment under the plan and removing the line. commercial. The Bureau noted that there are several factors that affect a person’s creditworthiness, including trade agreements previously provided by previous owners of the same debt, and that running a repayment plan does not guarantee a better credit rating.
- Transfers of funds. The reviewers found that some money transfer providers had violated the remittance rule. Specifically, the CFPB said vendors had received notices of errors alleging that the funds paid had not been made available to the designated recipient as of the disclosed availability date. However, these suppliers then did not seek to determine whether a deduction imposed by a foreign recipient bank constituted a commission that the suppliers were required to reimburse to the sender.
- Deposits. The Bureau discovered that in some cases, due to incorrect or outdated information in the digital payment network directory, some consumer EFTs were sent to unintended recipients. This happened even though the consumer provided the correct credential token information for the recipient. Additionally, in violation of Regulation E, some institutions failed to conduct reasonable error investigations when they received error notices from consumers indicating that consumers had sent funds through a person’s payment network. to no one, but that the intended recipients had not received such funds.
- Credit card account management. Reviewers said some credit card issuers have engaged in deceptive acts or practices by advertising, but not granting, bonus offers to existing customers for opening a new account. credit card requirements and meeting certain spending requirements. The Bureau also found that credit card issuers misled consumers who responded to advertisements offering incentives to open a new account and spend a minimum amount. Additionally, the examiners found that creditors violated Regulation Z billing error resolution requirements by failing to: (i) resolve a dispute within two full billing cycles after receiving an error notice from billing regarding the failure to credit a payment made by the consumer; (ii) reimburse a consumer for late fees after determining that a missed payment had not been properly credited to the consumer’s account; and (iii) conduct reasonable investigations after receiving billing error notices related to missing payment and unauthorized transactions.
- Payday loans. The examiners found that some lenders engaged in deceptive acts or practices by debiting or attempting to debit from consumers’ accounts the remaining balance of their loans at the original due date after consumers requested a loan extension and received a confirmation email stating that only an extension fee would be billed on the due date. The CFPB also said that some lenders were engaging in unfair acts or practices by debiting or attempting one or more additional, identical and unauthorized debits “on consumers’ bank accounts after consumers called to authorize a payment.” debit card loan and the lenders’ systems mistakenly indicated the transactions were not processed.
Like previous surveillance highlights, the fall 2021 report includes information on recent public enforcement actions that resulted, at least in part, from CFPB’s surveillance work.