CFPB to Evaluate Military Lending Act Violations in its Exams of Creditors and Will Use Its Enforcement Authority in Cases of Substantial Consumer Harm
Prepared Remarks of CFPB Director Richard Cordray to Corporation for Enterprise Development Assets Learning Conference
Good afternoon and thank you for inviting me today. It is good to be here with so many people who have similar goals and ideals. The thread that ties us together is our shared commitment to the goal of empowering the economically vulnerable among us. At the Consumer Financial Protection Bureau, we understand our ultimate goal is to make sure every consumer counts.
Project Also Finds Savings Persist After Offers End
Online Lender Did Not Help Consumers Build Credit or Access Cheaper Loans, As It Claimed
Lender Also Illegally Exposed Borrowers’ Debt Information to Employers, Friends, and Family
Thank you for joining us. We are here in Kansas City, known as “the Heart of America,” to discuss concerns about payday lending and other types of loans made to consumers facing an immediate need for cash.
Rule Would Require Lenders to Determine Whether Consumers Have the Ability to Repay Payday, Auto Title, and Certain Other High-Cost Loans
Today, we are releasing our fourth report on this market, which is a study of single-payment auto title loans. Our study analyzed nearly 3.5 million loans made to more than 400,000 borrowers over a period of several years. We examined loan usage patterns, with a focus on the repeated use of these loans, how long it takes borrowers to repay, how often they fall behind, how many borrowers default, and how many have their vehicle seized by the lender.
Majority of Auto Title Loan Business Comes From Borrowers Stuck In Debt for Most of the Year
CFPB Takes Action Against Check Cashing and Payday Lending Company for Tricking and Trapping Consumers
Bureau Alleges All American Check Cashing Hid Fees and Pressured Borrowers into Multiple Loans
Thank you for joining us. From the beginning, the small-dollar lending market, which includes payday loans, has been an area of focus for us at the Consumer Financial Protection Bureau. We have engaged in intensive analysis of the market. We have considered the history of the demand for such loans and the conditions that create […]
Repeat Debit Attempts Add Steep, Hidden Cost for Borrowers Yet Typically Fail to Recover Payments WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (CFPB) issued a report that found that attempts by online lenders to debit payments from a consumer’s checking account add a steep, hidden cost to online payday loans. Half of online […]
Written Testimony of CFPB Acting Deputy Director David Silberman Before the House Committee on Financial Services Subcommittee on Financial Institutions and Consumer Credit
Chairman Neugebauer, Ranking Member Clay, and Members of the Subcommittee, thank you for the opportunity to testify today about the Consumer Financial Protection Bureau’s (Bureau or CFPB) extensive and ongoing work related to payday lending. My name is David Silberman, and I serve as Associate Director for Research, Markets, and Regulations at the CFPB, a […]
Bureau Issues Industry-Wide Warning On Home, Workplace Debt Collection Risks WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) today took action against EZCORP, Inc., a small-dollar lender, for illegal debt collection practices. These tactics included illegal visits to consumers at their homes and workplaces, empty threats of legal action, lying about consumers’ rights, and […]
Bureau Alleges Integrity Advance Misrepresented the Cost of Loans, Seeks Redress for Borrowers WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) took action today against an online lender, Integrity Advance, LLC, and its CEO, James R. Carnes, for deceiving consumers about the cost of short-term loans. The Bureau alleges that the company’s contracts did […]
Bureau Alleges the NDG Enterprise Collected Money Illegally, Seeks Refunds for Consumers WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today announced the filing of a lawsuit in federal district court against the NDG Enterprise, a complex web of commonly controlled companies, for collecting money consumers did not owe. The CFPB alleges that the […]
WASHINGTON, D.C. – Today, the U.S. Department of Defense issued a final rule expanding the types of credit products that are covered by the 36-percent rate cap and other military-specific protections under the Military Lending Act. The rule closes loopholes that have led to lenders skirting the law with products that fall outside the scope […]
Thank you for joining us in Richmond for this field hearing. When I was originally appointed to serve as the Director of the Consumer Financial Protection Bureau, we decided to hold our first field hearing in Birmingham, Alabama on the topic of payday lending – the same subject we are addressing here today. That was […]
Robert F. Kennedy once said something that is apt for the work we all do: “The challenge of politics and public service is to discover what is interfering with justice and dignity for the individual here and now, and then to decide swiftly upon the appropriate remedies.” I have spoken with you before about some of these obstacles that interfere with justice and dignity for consumers – which we regularly refer to as “the four Ds.” We see them much too often: deceptive marketing, debt traps, dead ends, and discrimination. Today I would like to revisit these obstacles and describe some of the progress we are making to combat them.
Our efforts reflect concern about access to credit and do not reflect a one-sided perspective to maximize consumer protection or industry deterrence at all costs. There is such a thing as doing too little, and there is such a thing as doing too much. We are aiming instead at doing justice.
Thank you for joining us. Today, the Consumer Financial Protection Bureau is announcing an enforcement action against an online payday lender, the Hydra Group, which we believe has been running an illegal cash-grab scam to force purported loans on people without their prior consent. It is an incredibly brazen and deceptive scheme.
The Hydra Group Uses Phony Payday Loans to Illegally Access Consumer Bank Accounts WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) announced its action to halt the operations of an online payday lender, the Hydra Group, which it believes is running an illegal cash-grab scam. The lawsuit alleges that the Hydra Group uses […]
WASHINGTON, D.C. — Today, the Consumer Financial Protection Bureau (CFPB) took enforcement action against ACE Cash Express, one of the largest payday lenders in the United States, for pushing payday borrowers into a cycle of debt. The CFPB found that ACE used illegal debt collection tactics – including harassment and false threats of lawsuits or criminal prosecution – to pressure overdue borrowers into taking out additional loans they could not afford. ACE will provide $5 million in refunds and pay a $5 million penalty for these violations.
Prepared Remarks of CFPB Director Richard Cordray at the ACE Cash Express Enforcement Action Press Call
Thank you for joining us on today’s call. Today we are announcing that we have resolved an investigation and are entering an order against one of the nation’s largest payday lenders, ACE Cash Express, for inducing payday borrowers into a cycle of debt. We believe ACE used illegal debt collection tactics – including harassment and false threats of lawsuits, or criminal prosecution – to bully overdue borrowers with a demonstrated inability to repay their existing loans into taking out new payday loans with expensive fees. These kinds of predatory tactics are appalling, and under the terms of the order, ACE will pay $10 million in restitution and penalties to address the conduct at issue.
Written Testimony of CFPB Director Richard Cordray Before the Senate Committee on Banking, Housing and Urban Affairs
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 cards, and student loans involve some of the most important financial transactions in people’s lives. In the Dodd-Frank Act, Congress created the Bureau to stand on the side of consumers and ensure they are treated fairly in the consumer financial marketplace. Since we opened our doors, we have been focused on making consumer financial markets work better for the American people, the honest businesses that serve them, and the economy as a whole.