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Category: Testimony |
Published

Written Testimony of Richard Cordray, Director, CFPB Before the Senate Committee on Banking, Housing, and Urban Affairs

On September 8, 2016, the Consumer Bureau, together with our partners at the Los Angeles City Attorney’s office and the Office of the Comptroller of the Currency, took an enforcement action against Wells Fargo Bank. Our investigations found that, in order to meet sales goals and collect financial bonuses for themselves, employees of the bank created unauthorized deposit and credit card accounts, enrolled consumers in online banking services, and ordered debit cards for consumers, all without their consent or even their knowledge. 

Category: Speech |
Published

Prepared Remarks of Richard Cordray Director of the Consumer Financial Protection Bureau on the Wells Fargo Enforcement Action Press Call

Today the Consumer Financial Protection Bureau is joining our partners at the Los Angeles City Attorney’s office and the Office of the Comptroller of the Currency in taking an enforcement action against Wells Fargo Bank. Our investigations found that employees of the bank created unauthorized deposit and credit card accounts across the country in order to collect financial bonuses for themselves. The Bureau itself is levying a fine of $100 million against Wells Fargo for this widespread practice. All told, the bank will pay $185 million in fines for the illegal actions of these employees.

Category: Press release |
Published

Consumer Financial Protection Bureau Monthly Complaint Snapshot Spotlights Credit Card Complaints

The CFPB’s Office of Consumer Response hears directly from consumers about the challenges they face in the marketplace, brings their concerns to the attention of companies, and assists in addressing their complaints. This Monthly Complaint Report provides a high-level snapshot of trends in consumer complaints.

Category: Press release |
Published

CFPB Warns Colleges About Secret Campus Credit Card Contracts

Bureau Also Releases Safe Student Account Toolkit to Help Colleges Avoid Promoting Prepaid and Debit Products with Surprise Fees WASHINGTON, D.C. — Today, the Consumer Financial Protection Bureau (CFPB) sent warning letters to 17 colleges directing them to improve disclosure of school-sponsored credit card agreements. A Bureau investigation found that these schools failed to make […]

Category: Press release |
Published

CFPB Finds CARD Act Helped Consumers Avoid More Than $16 Billion in Gotcha Credit Card Fees

Concerns Remain About Other Back-End Practices Such As Deferred-Interest Promotions WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) today released a report detailing how the Credit Card Accountability Responsibility and Disclosure Act (CARD Act) has helped reduce the cost of “gotcha” credit card fees by more than $16 billion. Since the reform law, total […]

Category: Press release |
Published

CFPB Monthly Complaint Snapshot Spotlights Credit Card Complaints

Report Also Includes In-Depth Look at Consumer Complaints in the Chicago Metro Area WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) released its latest monthly consumer complaints snapshot, which highlights credit card complaints. Consumers’ most frequent credit card-related complaints were about incurring late fees and credit report problems due to confusing payment processing […]

Category: Press release |
Published

CFPB Orders Citibank to Pay $700 Million in Consumer Relief for Illegal Credit Card Practices

Millions of Consumers Harmed by Bank’s Deceptive Marketing and Unfair Billing of Credit Card Add-On Products and Services, and Other Unlawful Practices WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) has ordered Citibank, N.A. and its subsidiaries to provide an estimated $700 million in relief to eligible consumers harmed by illegal practices related to […]

Category: Press release |
Published

CFPB Finalizes Rule Aimed at Improving Credit Card Agreement Submission Process

Bureau to Temporarily Suspend Card Issuers’ Obligation to Submit Credit Card Agreements WASHINGTON, D.C. – Today the Consumer Financial Protection Bureau (CFPB) issued a final rule aimed at improving the way that companies submit consumer credit card agreements to the Bureau. The rule temporarily suspends a requirement that each quarter certain credit card issuers send […]

Category: Press release |
Published

CFPB Launches Public Inquiry to Inform Agency Review of the Credit Card Market

Bureau Seeks Stakeholder Input on How the Credit Card Market Is Functioning WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) announced it is seeking public comment on how the credit card market is functioning and the impact of credit card protections on consumers and issuers. This public inquiry will focus on issues including […]

Category: Press release |
Published

CFPB Seeks to Improve Process for Industry Submission of Consumer Credit Card Agreements

Bureau Proposes to Temporarily Suspend Card Issuers’ Obligation to Submit Credit Card Agreements WASHINGTON, D.C. – Today the Consumer Financial Protection Bureau (CFPB) issued a proposal aimed at improving the way that companies submit consumer credit card agreements to the Bureau. The proposal would temporarily suspend a requirement that each quarter certain credit card issuers […]

Category: Press release |
Published

CFPB Orders Subprime Credit Card Company to Refund $2.7 Million for Charging Illegal Credit Card Fees

‘Fee-Harvester’ Credit Cards Misrepresented Charges, Hit Consumers With Excessive Fees WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) ordered Continental Finance Company LLC, a subprime credit card company based in Delaware, to refund an estimated $2.7 million to approximately 98,000 consumers who were charged illegal credit card fees. The agency found that the […]

Category: Press release |
Published

CFPB Takes Action to Shut Down Sham Credit Card

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) asked a federal district court to enter a consent order that would permanently ban a Texas-based company, Union Workers Credit Services, from offering any consumer credit products or services after it duped thousands of consumers into signing up for a sham credit card. The order […]

Category: Press release |
Published

CFPB Sues Texas Company for Sham Credit Card

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) is suing a Texas-based company, Union Workers Credit Services, for deceiving consumers into paying fees to sign up for a sham credit card. The Bureau alleges that the company falsely advertises a general-use credit card that, in actuality, can only be used to buy products […]

Category: Press release |
Published

CFPB Report Finds Continued Decline in College Credit Card Agreements

WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (CFPB) released its annual report on college credit card agreements, which shows a nearly 70 percent decline in the number of agreements since Congress passed new disclosure requirements in 2009. These findings highlight the trend of marketing partnerships between colleges and financial institutions shifting from credit cards toward other products such as debit and prepaid cards, which generally have fewer sunshine protections. The report also found that most colleges with credit card agreements do not make those agreements readily accessible to students and families.

Category: Press release |
Published

CFPB Announces Project Catalyst Research Pilot

WASHINGTON, D.C.– Today, the Consumer Financial Protection Bureau (CFPB) announced a Project Catalyst research pilot to examine the effectiveness of early intervention credit counseling for consumers who are at risk of default on their credit card debt. The research can help improve understanding of strategies that may help consumers struggling with credit card debt avoid defaulting and harming their credit reports. The initiative will inform the Bureau’s work and support its mission to empower consumers to lead better financial lives.

Category: Speech |
Published

Prepared Remarks of CFPB Director Richard Cordray on the GE Capital Enforcement Action Press Call

Thank you for joining us on this call today. Today, the Bureau is ordering GE Capital Retail Bank, now known as Synchrony Bank, to provide $225 million in remediation to 746,000 consumers who were harmed by GE Capital’s deceptive credit card add-on practices and discriminatory debt relief promotions. This kind of conduct has no place in the consumer financial marketplace. People deserve to be given clear information and they deserve to be treated fairly.

Category: Press release |
Published

CFPB Orders GE Capital to Pay $225 Million in Consumer Relief for Deceptive and Discriminatory Credit Card Practices

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) is ordering GE Capital Retail Bank (GE Capital), now known as Synchrony Bank, to provide an estimated $225 million in relief to consumers harmed by illegal and discriminatory credit card practices. GE Capital must refund $56 million to approximately 638,000 consumers who were subjected to deceptive marketing practices. As part of the joint enforcement action by the CFPB and Department of Justice, GE Capital must also provide an additional $169 million to about 108,000 borrowers excluded from debt relief offers because of their national origin. This order represents the federal government’s largest credit card discrimination settlement in history.

Category: Testimony |
Published

Written Testimony of CFPB Director Richard Cordray Before the House Committee on Financial Services

Chairman Hensarling, Ranking Member Waters, and Members of the Committee, thank you for inviting me to testify today about the Semi-Annual Report of the Consumer Financial Protection Bureau. The Consumer Financial Protection Bureau is the nation’s first federal agency with the sole focus of protecting consumers in the financial marketplace. Financial products like mortgages, credit […]

Category: Speech |
Published

Prepared Remarks of CFPB Director Richard Cordray on the Bank of America Enforcement Action Press Call

Thank you for joining us on this call today. Central to our mission here at the Consumer Bureau is the duty to identify and root out unfair, deceptive, and abusive practices in financial markets. So when we see credit card companies charging customers for services they did not receive or using deceptive marketing to pitch […]

Category: Press release |
Published

CFPB Orders Bank Of America To Pay $727 Million In Consumer Relief For Illegal Credit Card Practices

Millions of Consumers Harmed by Bank’s Deceptive Marketing and Unfair Credit Card Billing Practices WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) has ordered Bank of America, N.A. and FIA Card Services, N.A. to provide an estimated $727 million in relief to consumers harmed by practices related to credit card add-on products. Roughly 1.4 […]

Category: Press release |
Published

CFPB Calls on Top Credit Card Companies to Make Credit Scores Available to Consumers

Bureau Report Finds Accuracy Issues Top Credit Report Complaints; Warns on Avoiding Investigations WASHINGTON, D.C. — Today, the Consumer Financial Protection Bureau (CFPB) called on the nation’s top credit card companies to make credit scores and related content freely available to their customers. A report released by the CFPB today found accuracy issues top the […]