Consumer Agency Sues Navient fka Sallie Mae, for Cheating Student Loan Borrowers

This is the CFPB’s Announcement of a Very Significant Enforcement Action CONSUMER FINANCIAL PROTECTION BUREAU SUES NATION’S LARGEST STUDENT LOAN COMPANY NAVIENT FOR FAILING BORROWERS AT EVERY STAGE OF REPAYMENT Today the Consumer Financial Protection Bureau (CFPB) sued Navient, formerly Sallie Mae, the nation’s largest servicer of both federal and private student loans for systematically and illegally failing borrowers at every stage of repayment. For years, Navient has created obstacles to repayment by providing bad information, processing payments incorrectly, and failing to act when borrowers complained. Through shortcuts and deception, the company also illegally cheated many struggling borrowers out of...

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CFPB Orders TransUnion and Equifax to Pay for Deceiving Consumers in Marketing Credit Scores

The Consumer Financial Protection Bureau today announced it has taken action against Equifax and TransUnion for deceiving consumers about the usefulness and actual cost of credit scores they sold to consumers. The companies also lured consumers into costly recurring payments for credit-related products with false promises. The CFPB said that from 2011 to March 2014, TransUnion and Equifax falsely represented that the credit scores they marketed and provided to consumers were the same scores lenders typically use to make credit decisions. In fact, the scores were not typically used by lenders. Plus, TransUnion and Equifax falsely claimed that their credit...

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CFPB Sues Credit Repair Company and Advises Consumers Not to Fall for Misleading Credit Repair Ads

Consumer Financial Protection Bureau filed a lawsuit in federal district court against the credit repair company Prime Marketing Holdings alleging it charged consumers illegal advance fees and misrepresented the cost and effectiveness of its services. CFPB is seeking an injunction and refunds of fees to consumers. This company used the names Park View Credit, National Credit Advisors, and Credit Experts. The company lured consumers with misleading, unsubstantiated claims that it could remove virtually any negative information from their credit reports and could boost credit scores by significant amounts. The company charged consumers a variety of illegal advance fees such as...

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Good News for Consumers–the CFPB’s Proposed New Rules for Debt Collectors

There is good news for the 70 million U.S. consumers who are behind in their bills and being pursued by a debt collector. The federal Consumer Financial Protection Bureau has proposed new rules that apply to the debt collectors that collect bills for other creditors. The current rules are outdated and inadequate. For example, when existing law was enacted, there was no voicemail, email or text messages. Back when the debt protection laws were written, debt collectors were sending consumers postcards, collect calls and telegrams! Here are the main new rules: Debt collectors would have to tell consumers they could...

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New CFPB Rule–Banks and Finance Companies Will be Barred from Using Forced Arbitration to ban Class Actions

New CFPB Rule–Banks and Finance Companies Will be Barred from Using Forced Arbitration to ban Class Actions Banks and payday lenders have had a good deal going for a while: They could break the law, trick their customers in illegal ways, and not have to face any consumer lawsuits. Armed by some pretty bad 5-4 Supreme Court decisions, they could hide behind Forced Arbitration clauses (fine print contracts that say consumers can’t go to court even when a bank acts illegally), even when it was clear that the arbitration clauses made it impossible for a consumer to protect their rights....

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