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The bank will pay a total of $190 million in penalties and restitution for thousands of employees opening unauthorized accounts in an effort to garner higher bonuses and better performance reviews. The bank has dropped product sales goals for its consumer bankers in the wake of the settlement.
A trade association representing payday and short-term lenders announced it has documentary evidence that the Consumer Financial Protection Bureau suppressed positive consumer testimonials about payday lending, even while it was moving to subject payday lenders to stringent new rules.
The Consumer Financial Protection Bureau has handled approximately 94,200 bank account or service complaints, somewhat less than one complaint for every 2,000 accounts.
The ruling means that tribal lenders cannot claim federal exemption from state laws, and that CFPB jurisdiction now extends to tribal lenders financed by third parties.
Hundreds of counties across the United States have implemented programs to combat elder financial abuse, according to a report from the Consumer Financial Protection Bureau.
The bank will refund $27.75 million to about a quarter of a million affected consumers and will also pay a $4.5 million civil money penalty to the CFPB. Separately, the OCC also fined the company $3 million.
The report concluded that many servicers present obstacles and delays to borrowers that can leave them with thousands of dollars of extra costs.
The bureau must enforce consumer protection laws “consistently, without regard to the status of a…depository institution, in order to promote fair competition,” said CFPB Director Richard Cordray said.
The bureau touted its accomplishments in its first five years in a video, but its report card is not unblemished.
A third-party payment processor has filed a motion in federal court asking a judge to dismiss a June 2016 Consumer Financial Protection Bureau lawsuit.