Consumer Federation Says CFPB Enforcement Actions, Fines Have Plummeted

WASHINGTON––Enforcement actions announced by the CFPB under the Trump Administration have declined sharply, according to a new analysis released by the Consumer Federation of America (CFA).

CFA

According to the CFA, enforcement of federal consumer financial law and bringing legal action against companies that violate that law have declined by 80% from the Bureau’s peak productivity in 2015, while the average monetary relief to victims is down by 96% per case.

“This decline is seen in the areas where the volume of consumer complaints received by the CFPB is the highest. Public enforcement actions involving credit reporting and debt collection, which saw the highest complaint volumes in recent years have dropped significantly,” the CFA said. “Further, under the Trump Administration’s leadership the Bureau has not announced a single dollar of monetary relief in any of the high-volume complaint areas of credit reporting, debt collection, or student lending.”

The Findings

Among the CFA’s findings          

  • Law enforcement addressing illegal credit reporting practices has declined sharply under the Trump Administration’s leadership. The CFPB has announced only two cases enforcing the Fair Credit Reporting Act. The CFPB agreed to settle both cases without providing a single dollar of restitution to victims of illegal practices, the CFA said.
  • Law enforcement addressing illegal debt collection practices has declined sharply under the Trump Administration’s leadership. “Under Acting Director Mulvaney and Director Kraninger the CFPB has announced only one case enforcing the Fair Debt Collection Practices Act,” the CFA said. “The CFPB agreed to settle this case without ordering a single dollar of restitution to victims of illegal debt collection practices.”
  • Law enforcement policing of the home mortgage lending market has declined sharply under the Trump Administration’s leadership. According to the CFA, “Under prior leadership, the CFPB announced 61 mortgage lending cases that returned nearly $3 billion in restitution to consumers at a pace of over $10 million per week. Under Acting Director Mulvaney consumer relief per week in mortgage lending declined by over 99% to less than $5,000 per week for the entire nation. Under Director Kraninger, the Bureau has not announced a single mortgage lending related case, nor any restitution for consumers.”
  • Law enforcement policing of the student loan market has declined sharply under the Trump Administration’s leadership. “Under Director Cordray, the CFPB announced 15 student lending related cases with an average of $47.5 million in consumer relief per case. Under the Trump Administration’s leadership, the CFPB has not announced or resolved a single student lending enforcement case and has provided no restitution to any consumers.”
  • Under the Trump Administration’s leadership, the CFPB has failed to enforce consumer protection laws prohibiting discrimination. “Under Director Cordray, the CFPB announced 11 cases enforcing the Equal Credit Opportunity Act producing average consumer relief over $56 million per case,” the CFA said. “Under the Trump Administration’s leadership, the CFPB has not announced or resolved a single case alleging unlawful discrimination and has provided no restitution to any consumers.”
  • Under the Trump Administration’s leadership, the CFPB has failed to provide adequate restitution to victims of deceptive practices. “Under prior leadership, the CFPB announced 116 enforcement cases against consumer finance companies that used deceptive or misleading practices producing average consumer relief of over $94 million per case,” the CFPB said. “Although Director Kraninger has announced three enforcement cases alleging deceptive practices, the CFPB agreed to settle each case without ordering any monetary restitution for victims.”

 The full report can be found here.

 

Section: Standard
Word Count: 701
Copyright Holder: CUToday.info
Copyright Year: 2019
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URL: http://www.cutoday.info/Fresh-Today/Consumer-Federation-Says-CFPB-Enforcement-Actions-Fines-Have-Plummeted