Credit union liable in member withdrawal, court finds
The U.S. District Court for the District of Massachusetts granted an American Airlines Federal Credit Union member’s motion for summary judgment against the union for alleged violations of the Truth in Lending Act and the anti-offset provisions of the Massachusetts Consumer Credit Cost Disclosure Act. The union had withdrawn deposits to pay for a past-due credit bill.
Firms cited for deception in pension advance loan plans
Three companies were cited by the Consumer Financial Protection Bureau and the New York Department of Financial Services for offering pension advances which were loans with the “effective interest rate greater than those typically available for other products to which defendants drew comparisons.” The agencies asserted that defendants took advantage of consumers’ lack of understanding of their pension advance and potential alternatives. Read on to find out the ways the agencies were tipped off, and how you can avoid the companies’ mistakes when promoting consumer loans.
CFPB, FTC file amicus brief in FDCPA case
The Consumer Financial Protection Bureau and the Federal Trade Commission have filed an amicus brief with the U.S. Court of Appeals for the Third Circuit in Bock v. Pressler & Pressler, LLP, which is a case involving a claim under the Fair Debt Collection Practices Act against a debt-collection law firm that filed a complaint against the consumer. The agencies argued that an attorney’s four-second review of a complaint does not constitute meaningful attorney involvement under the law. Read on for more details.
FTC takes aim at data brokers who sold payday applicant information
The Federal Trade Commission (FTC) charged two companies and their managers for illegally selling payday loan applicants’ financial information to scammers who took money from consumers by debiting their bank accounts and charging their credit cards without their consent. The FTC’s complaint did not name the company performing the unauthorized billing, but instead the providers of consumer information.
CFPB to Citizens: Double check the math
The Consumer Financial Protection Bureau, Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency each took action against Citizens Bank for failing to credit consumers the full amounts of their deposit funds. The bank’s policy on double checking discrepancies on deposit slips and deposit materials was found to allow $12.3 million in consumer deposits to go uncredited.
Santander facing fair lending scrutiny from the CFPB
In a quarterly filing with the Securities and Exchange Commission, Santander Consumer USA Holdings Inc. announced that it was notified by the Consumer Financial Protection Bureau that it was being referred to the Department of Justice for alleged fair lending violations. Read on for more details.