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Category: Speech |
Published

Prepared Remarks of CFPB Director Richard Cordray at the Association of Military Banks of America

I would like to thank the Association of Military Banks and Andy Egeland for inviting me to be with you here today.

As the Director of the Consumer Financial Protection Bureau, I recognize the importance that community banks play in the lives of many consumers and in many neighborhoods and small towns across the United States. When I joined the Consumer Bureau, I came with a strong viewpoint that community banks were not among the causes of the financial crisis. I saw this when I was a county treasurer, then the State Treasurer of Ohio. You did not underwrite the bad loans that brought down the housing market. Instead, you worked to keep your own customers in sound and sustainable loans. You were sounding the alarm bells well before the sinking of the economy. And you were upholding sensible underwriting standards even though you may have been losing some of your customers and your market share to the financial predators who were not held to the same standards of responsible lending.

Category: Press release |
Published

CFPB Shuts Down USA Discounters’ Servicemember Fee Scam

WASHINGTON, D.C.— The Consumer Financial Protection Bureau (CFPB) today put an end to a servicemember fee scam run by USA Discounters, Ltd., a company that operates a chain of retail stores near military bases and offers financing for purchases. USA Discounters tricked thousands of servicemembers into paying fees for legal protections servicemembers already had and for certain services that the company failed to provide. The CFPB has obtained more than $350,000 in refunds for servicemembers harmed by this scam, and USA Discounters will pay an additional $50,000 civil penalty.

Category: Press release |
Published

CFPB and 13 State Attorneys General Obtain About $92 Million in Debt Relief for Servicemembers Harmed by Predatory Lending Scheme

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) and 13 state attorneys general obtained approximately $92 million in debt relief from Colfax Capital Corporation and Culver Capital, LLC, also collectively known as “Rome Finance,” for about 17,000 U.S. servicemembers and other consumers harmed by the company’s predatory lending scheme. Rome Finance lured consumers with the promise of no money down and instant financing. Rome Finance then masked expensive finance charges by artificially inflating the disclosed price of the consumer goods being sold. Rome Finance also withheld information on billing statements and illegally collected on loans that were void. Rome Finance and two of its owners are permanently banned from consumer lending.

Category: Testimony |
Published

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.

Category: Speech |
Published

Statement by CFPB’s Holly Petraeus on DOJ, FDIC Enforcement Actions Against Sallie Mae

WASHINGTON, D.C. — Today, the U.S. Department of Justice announced an enforcement action against Sallie Mae (also known as Sallie Mae Bank and Navient Solutions), the largest servicer of federal and private student loans, which was found to be systematically violating the legal rights of U.S. servicemembers. The Federal Deposit Insurance Corporation (FDIC) also reached […]

Category: Press release |
Published

CFPB Recovers More Than $1 Million for Servicemembers, Veterans, and their Families

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) announced today that servicemembers, veterans, and their families who complained to the Bureau about financial products or services have recovered more than $1 million. The relief was reported in the CFPB’s second snapshot of complaints from military consumers, which also highlighted how some military families are not receiving the added consumer protections they have earned.

Category: Testimony |
Published

Hollister K. Petraeus Before the U.S. Senate Committee on Commerce, Science & Transportation

Chairman Rockefeller, Ranking Member Thune, and distinguished Members of the Committee, I’d like to thank you for the opportunity to speak with you today concerning consumer protection for the military, particularly in the area of predatory lending to servicemembers and their families.

Category: Testimony |
Published

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

Chairman Johnson, Ranking Member Crapo, and Members of the Committee, thank you for inviting me to testify today about the fourth Semi-Annual Report of the Consumer Financial Protection Bureau. Since we opened our doors just over two years ago, the Bureau has been focused on making consumer financial markets work better for the American people, and helping them improve their financial lives.

Category: Press release |
Published

CFPB Lays Out Guidelines for Protecting Servicemembers in the Payday Lending Market

Today, the Consumer Financial Protection Bureau (CFPB) released guidelines to its examiners on how to identify consumer harm and risks related to Military Lending Act (MLA) violations when supervising payday lenders. The CFPB is committed to ensuring that payday lenders comply with the Act, which provides greater protections for military families, including capping annual percentage rates at 36 percent. The new guidelines are included in an updated exam manual that the CFPB released today for the short-term, small-dollar lending industry.

Category: Press release |
Published

CFPB Orders Auto Lenders to Refund Approximately $6.5 Million to Servicemembers

The two companies must return about $6.5 million to servicemembers for failing to properly disclose all the fees charged to participants in the companies’ Military Installment Loans and Educational Services (MILES) auto loans program, and for misrepresenting the true cost and coverage of add-on products financed along with the auto loans.

Category: Press release |
Published

Consumer Financial Protection Bureau Warns Companies Against Misleading Consumers with False Mortgage Advertisements

Today’s actions stem from a joint “sweep,” a review conducted by the CFPB and the FTC of about 800 randomly selected mortgage-related ads across the country, including ads for mortgage loans, refinancing, and reverse mortgages.

Category: Speech |
Published

Remarks by Hollister K. Petraeus at the Department of Defense Worldwide Education Symposium

Although I often heard about the issues I mentioned, I was surprised to hear at nearly every stop about the challenges that servicemembers and Education Services Officers were facing when it came to decisions about where to spend hard-earned GI Bill and Tuition Assistance benefits. Here are some of the stories that I heard:

Category: Press release |
Published

Consumer Financial Protection Bureau and prudential regulators issue joint guidance to address mortgage servicer practices that impact servicemembers

The guidance, which is intended to ensure compliance with applicable consumer laws and regulations, pertains to military homeowners who have received Permanent Change of Station (PCS) orders, which occur when a servicemember is ordered by the military to relocate to a new installation.

Category: Speech |
Published

Prepared Remarks by Holly Petraeus at Military Permanent Change of Station (PCS) Guidance for Mortgage Servicers Press Conference

We’re pleased to have the support of the prudential regulators who signed the guidance we’re announcing today – the Federal Reserve Board, the FDIC, the NCUA and the OCC – as well as that of the FHFA, the Department of Defense, the VA, USDA, Treasury, Justice, and HUD.