Just in time for your Fourth of July holiday 🌟 , the CFPB released their Supervisory Highlights Summer 2024 Edition today. This edition includes UDAAP , Regulation E, and Regulation F violations to name a few in the areas of auto and student loan servicing and debt collection, including credit card debt collections. There are also findings in deposits and prepaid accounts as well as credit card account management with a focus on medical credit cards.
🎇 Auto Servicing - Servicers offered preauthorized recurring electronic fund transfer enrollment for consumers to make automatic payments on their loans. The servicers’ autopay systems did not debit consumers’ final payments when they were a different amount from their regular monthly payments. This practice caused substantial injury to the consumers in the form of late fees assessed when the final payment was not made, i.e unfair under UDAAP.
🎇 Student Loan Servicing - Examiners identified unfair and abusive acts or practices by student loan servicers related to failing to provide adequate avenues for communication due to excessive hold times (Average 40 minutes). Examiners found that servicers engaged in abusive acts or practices because servicers took unreasonable advantage of consumers’ inability to protect their interests. The servicers gained an advantage by understaffing their call centers because they reduced their salary expenses Examiners also identified deceptive acts or practices related to misrepresenting which forms consumers should use to enroll in certain programs. And examiners found that servicers failed to notify consumers of preauthorized funds transfers that exceeded the previous transfer amount.
🎇 Debt Collection - Examiners found that debt collectors used false, deceptive, or misleading representations or means in connection with collection of a debt when they used a business, company, or organization name other than the true name of the debt collectors’ business, company, or organization. Debt collectors sent payment reminder emails to the consumer before 8 a.m. in the consumer’s time zone. Examiners identified multiple phone calls where the consumer directly informed the collectors’ agent that it was an inconvenient time or place for the consumer, but the agents continued the conversations beyond permissible follow-up questions.
Additionally, this edition summarizes supervisory activity related to section 1034(c) of the Consumer Financial Protection Act of 2010 (CFPA) which requires large banks and credit unions to comply with consumer requests for information concerning their accounts for consumer financial products and/or services in a timely manner. The supervisory activity indicates that some entities have ceased charging consumers fees to obtain account information and items such as printed copies of check images and account statements. Some entities are also offering free balance inquiry information at third party ATMs.
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3moIf this is true why has CFPB allowed Shellpoint Mortgage to continue there conduct of harassment and debt collection vilations regardless of millions of complaints filed? It may not be medical or student loan but it is still a debt colletion