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Bank of America has been ordered to pay $250 million in penalties for “systematically double-dipping” on overdraft fees, withholding credit card reward bonuses, and opening accounts without customer authorization.
Sen. Elizabeth Warren (D-Mass.) recently called on the Consumer Financial Protection Bureau to finalize a proposal that would drastically reduce credit card late fees. The June 29 letter pertained to a proposal in February to reduce the maximum credit card fee per missed payment to $8 from the current figure of $41.
The Consumer Financial Protection Bureau fined payment processing company ACI Worldwide and subsidiary ACI Payments $25 million for improperly initiating roughly $2.3 billion in illegal mortgage payment transactions.
Southern consumers face disproportionately higher interest rates and more challenges in accessing credit, according to two Consumer Financial Protection Bureau reports.
The Consumer Financial Protection Bureau will propose open banking regulations in the next few months and plans to finalize the rule in 2024, Director Rohit Chopra said June 12 in a blog post. Chopra said the rule, which the CFPB is required to issue under Section 1033 of the Dodd-Frank Act, will ensure a more competitive environment and give consumers the ability to control their own financial data.
The Consumer Financial Protection Bureau is warning financial institutions that they could violate federal consumer financial protection laws if chatbots fail to provide accurate information to customers and don’t protect their privacy and data.
Money held in nonbank, peer-to-peer digital payment apps often lack the deposit insurance protections at traditional banks and are more susceptible to losses, according to a Consumer Financial Protection Bureau report.
The Consumer Financial Protection Bureau fined Providence, R.I.-based Citizens Financial Group $9 million for violating consumer financial protection standards on disputed credit card transactions. According to the CFPB, Citizens violated the Truth in Lending Act by improperly denying customers’ requests for reports of fraud and errors and requiring them to “jump through unnecessary and burdensome hoops, which are not required under the Truth in Lending Act, to report fraud.”
The American Bankers Association and Texas Bankers Association are suing the Consumer Financial Protection Bureau to prevent the agency from implementing Section 1071 of the Dodd-Frank Act.
Banks could violate the Consumer Financial Protection Act by unilaterally reopening consumer deposit accounts to process transactions, according to a May 10 Consumer Financial Protection Bureau circular.