The CFPB highlighted findings from supervisory examinations completed in 2020. The examinations covered, among other things, (i) auto servicing, (ii) consumer reporting, (iii) debt collection, (iv) fair lending, (v) mortgage servicing and (iv) student loan servicing.

In its periodic publication Supervisory Highlights, the CFPB reported, among other things, examples of:

  • unfair or deceptive practices in relation to (i) lender-placed collateral protection insurance, and (ii) payment application and payoff amounts, in circumstances where consumers were due ancillary product rebates;
  • deficiencies in consumer reporting companies' compliance with the Fair Credit Reporting Act and Regulation V, specifically, their (i) accuracy requirements, (ii) requirements concerning ID theft block requests and (iii) dispute investigation requirements;
  • violations by larger participant debt collectors that include (i) prohibited calls to a consumer's workplace, (ii) the failure to halt communications after receiving a written request or refusal to pay, and (iii) illegal administrative wage garnishment during debt consolidation processes;
  • the failure to (i) investigate errors in a timely manner, (ii) conduct reasonable examinations, (iii) remediate errors properly and (iv) obtain affirmative consent from consumers prior to charging them with overdraft fees;
  • payday lending violations that involve misrepresentations of (i) an intent to sue, (ii) whether credit checks will be conducted and (iii) consumers' eligibility for no-cost repayment plants; and
  • deceptive market practices involving private education loan rates and student loan servicing, including (i) public service loan forgiveness, (ii) the impact of employer certification forms and (iii) the irreversible consequences of automatic natural disaster forbearances.

Primary Sources

  1. Federal Register: Supervisory Highlights, Issue 24, Summer 2021

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