Blog Enforcement Watch December 30, 2020

CFPB Secures Consent Order Against Student Loan Servicer for Failure to Comply with 2015 Consent Order and Alleged Deceptive Acts and Practices

On December 22, 2020, the Consumer Financial Protection Bureau (CFPB) announced​ that it had secured a consent order ​against a national student loan servicer based on its failure to comply with a 2015 consent order issued by the CFPB.  Specifically, the company misrepresented the minimum periodic payments owed by consumers on their student loans, misrepresented the amount of annual interest paid by consumers, and engaged in unfair acts and practices by withdrawing payments from consumers’ accounts without valid authorization from the consumer, in violation of the Consumer Financial Protection Act, 12 U.S.C. §§ 5531(a) and 5536(a)(1)(A) and (B), the Electronic Funds Transfer Act, 15 U.S.C. §1693e(a) and (b), and  Regulation E, 12 C.F.R. § 1005.10(b) and (d).

The consent order requires the company to pay a $25 million civil money penalty, at least $10 million in consumer redress, and to take steps to prevent future violations.

The post CFPB Secures Consent Order Against Student Loan Servicer for Failure to Comply with 2015 Consent Order and Alleged Deceptive Acts and Practices appeared first on Consumer Finance Enforcement Watch.