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Provident Settlement Administrator to contact eligible borrowers soon

As part of a settlement agreement with the CFPB and the Department of Justice, Provident Funding Associates, L.P. agreed to pay $9 million in relief to minority borrowers whom Provident overcharged between 2006 and 2011. Over the next few days, African-American and Hispanic borrowers harmed by these actions will receive packets with instructions on how to participate in the settlement. If you are eligible, you will receive a participation packet that will tell you the specific minimum amount of money you will receive if you choose to take part in the settlement. Your actual payment amount may be greater, depending on how many borrowers participate in the settlement.

This comes after we—the CFPB and the Department of Justice—filed a complaint in May 2015 against Provident. We alleged that Provident charged approximately 14,000 African-American and Hispanic borrowers higher total broker fees on mortgage loans than similarly-situated non-Hispanic white borrowers between 2006 and 2011. The parties agreed on a settlement, and a federal court ordered Provident to pay $9 million in relief to African-American and Hispanic borrowers whom Provident overcharged. 

Submit your form by mail, email, or fax

The participation packets will include a form that you must sign if you want to take part in the settlement and receive your payment. You can return this form by postage prepaid mail, e-mail, online submission, or fax. Just follow the instructions on the form. Be sure to submit your form by Dec. 27, 2016. Only those eligible consumers who return their forms by Dec. 27, 2016 will receive their payment.

If you don’t get a participation packet in the mail by October 12 but think you should get a payment, you can call the Provident Consent Order Administrator at (855) 896-0632 to ask about your eligibility. You can also fill out a claim eligibility form and submit it by mail, email, or fax.   

Participating in the settlement is free

Watch out for scammers claiming that they will help you for a fee or asking for your personal information in order to get your check. When large numbers of consumers get settlement money, scammers sometimes pop up. The scammer may charge you a fee or try to steal your personal information. While you are of course free to speak with a lawyer, you do not need to hire a lawyer or pay anyone a fee in order to participate in this settlement.

As part of this settlement, the Provident Consent Order Administrator, the Consumer Financial Protection Bureau, the Department of Justice, or your local U.S. Attorney’s office may contact you. You should treat any other contact claiming to be about this settlement as a scam. Please immediately report any scam to the Provident Consent Order Administrator at (855) 896-0632.

Still have questions?

If you have any questions, check out the Provident Consent Order Administrator’s website or call (855) 896-0632.

Learn more about how you can protect yourself from credit discrimination.

Updated Sept. 29, 2016, to specify the year the complaint against Provident Funding Associates, L.P. was filed.

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