Recently shares in a South Carolina lending business plummeted after the company disclosed it might face legal action from the Consumer Financial Protection Bureau (CFPB). Shares of World Acceptance Corporation (World), a Greenville-based company, dropped by almost $19, or 36 percent per share, to about $33. The company disclosed last year that it received a “civil investigative demand” from the CFPB. At that time, the agency said it was trying to determine whether the lender […]
Category: Civil Monetary Penalties
CFPB – FIRST SERVICING CONSENT ORDER
On September 29. 2014 the Consumer Financial Protection Bureau (CFPB) took action against Michigan-based Flagstar Bank for violating the new mortgage servicing rules contained in Section 1024 of Regulation X, which implements the Real Estate Settlement Procedures Act (RESPA), by illegally blocking borrowers’ attempts to save their homes. The loans were primarily owned by investors and were serviced by Flagstar under contract. The consent order alleges the bank took excessive time to process borrowers’ applications […]
IS THE CFPB PADDING NUMBERS?
Last month, on the occasion of its third anniversary, the Consumer Financial Protection Bureau (CFPB) touted its numerous successes in its three years of existence, including $4.6 billion in relief and refunds for consumers. That number will take a big jump when the CFPB adds in its recent $16.65 billion settlement with Bank of America. A $16.65 billion settlement is big number by any measurement. But subsequently it has been reported that B of A […]
REGULATION E CIVIL MONETARY PENALTIES
Case 1 – In late July an Indiana bank was assessed a $70,000 penalty for engaging in unfair and deceptive acts or practices by the imposition of requirements on consumers in the resolution of electronic transfer errors which were more onerous than those set forth in Regulation E, thereby effectively delaying, denying or discouraging error resolution claims. Case 2 – In mid-July a bank located in Kentucky was assessed a $100,000 penalty for engaging in unfair […]
INCREASED CIVIL MONETARY PENALTIES
The Federal Civil Penalties Inflation Adjustment Act of 1990 (FCPIA Act)requires Federal agencies to adjust, by regulation, the Civil Monetary Penalties (CMPs) within their jurisdiction by a prescribed inflation adjustment at least once every four years. The Federal Reserve Board (FRB) made its last adjustment to its CMPs on October 6, 2008, On November 16, 2012 the FRB issued a final rule to set forth the newly-adjusted CMPs which will apply to violations that occur […]