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CONSUMER FINANCIAL PROTECTION BUREAU ANNOUNCES ACTION AGAINST CITIZENS BANK, N.A.

FOR IMMEDIATE RELEASE:
January 30, 2020

MEDIA CONTACT:
Office of Communications
Tel: (202) 435-7170

CONSUMER FINANCIAL PROTECTION BUREAU ANNOUNCES ACTION AGAINST CITIZENS BANK, N.A.

WASHINGTON, D.C. – Today the Consumer Financial Protection Bureau (Bureau) filed suit against Citizens Bank, N.A. (Citizens), a national banking association headquartered in Providence, Rhode Island.  The Bureau’s complaint alleges violations of the Truth in Lending Act (TILA) and TILA’s implementing Regulation Z, including violations of amendments to TILA contained in the Fair Credit Billing Act (FCBA) and the Credit Card Accountability Responsibility and Disclosure Act (CARD Act).

As described in the complaint, the Bureau alleges that for several years Citizens violated TILA, as amended by the FCBA, and Regulation Z by failing to properly manage and respond to credit card disputes.  The complaint alleges that Citizens automatically denied consumers’ billing error notices and claims of unauthorized use in certain circumstances.  The complaint further alleges that Citizens failed to fully refund finance charges and fees when consumers asserted meritorious disputes or fraud claims, and failed to send consumers required acknowledgement letters and denial notices in response to billing error notices.

The Bureau further alleges that for several years Citizens violated TILA by violating provisions passed under the CARD Act.  The Bureau alleges that Citizens violated TILA and Regulation Z by failing to provide credit counseling referrals to consumers who called Citizens’ toll-free number designated for that purpose.  These alleged violations of TILA—including those under the FCBA and the CARD Act—and Regulation Z also constitute violations of the Consumer Financial Protection Act.

The Bureau filed its complaint in the U.S. District Court for the District of Rhode Island on January 30, 2020.  The Bureau’s complaint seeks, among other remedies, an injunction against defendants and the imposition of civil money penalties.

The complaint is not a finding or ruling that the defendant has violated the law.

The complaint is available at: https://files.consumerfinance.gov/f/documents/cfpb_citizens-bank_complaint_2020-01.pdf.

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The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by regularly identifying and addressing outdated, unnecessary, or unduly burdensome regulations, by making rules more effective, by consistently enforcing federal consumer financial law, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov.

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CFPB To Hold First Symposium On June 25

FOR IMMEDIATE RELEASE:
June 11, 2019

MEDIA CONTACT:
Office of Communications
Tel: (202) 435-7170

CFPB To Hold First Symposium On June 25

WASHINGTON, D.C. – The Consumer Financial Protection Bureau announced today that its first symposium will be held on June 25 at 9 a.m. The symposium, part of a series announced earlier this year, will focus on the Dodd-Frank Act’s prohibition on abusive acts or practices. The symposium will be webcast on the Bureau’s website.

The Dodd-Frank Act authorizes the Bureau to take enforcement, supervision, and rulemaking actions concerning unfair, deceptive, or abusive acts and practices (UDAAP). The meaning of abusiveness is less developed than the meaning of unfair or deceptive, which have been defined substantially by the Federal Trade Commission Act. The symposium will provide a public forum for the Bureau and the public to hear various perspectives on the meaning of abusiveness.

This first symposium will have two panels of UDAAP experts. The symposium will also include remarks by CFPB Director Kathleen L. Kraninger and CFPB Deputy Director Brian Johnson. The first panel will include a discussion with leading academic experts in the area of Consumer Protection on various policy issues relating to the abusive standard under Dodd-Frank. The panel will be moderated by Tom Pahl, CFPB’s Policy Associate Director, Research, Markets and Regulation. The experts on the panel will include:

• Patricia McCoy, Professor of Law, Boston College Law School
• Todd Zywicki, Professor of Law, George Mason University, Antonin Scalia Law School
• Howard Beales, George Washington University; former Director of the Federal Trade Commission (FTC) Bureau of Consumer Protection
• Adam Levitin, Professor of Law, Georgetown Law School

The second panel will examine how the abusive standard has been used in practice, and will include leading legal experts in the field. The panel will be moderated by David Bleicken, CFPB Deputy Associate Director, Supervision, Enforcement and Fair Lending. Experts on the panel will include:
• William MacLeod, Partner at Kelley Drye; former Director of the FTC Bureau of Consumer Protection and Bureau of Competition
• Eric Mogilnicki, Partner at Covington & Burling; former Chief of Staff, Senator Ted Kennedy
• Lucy Morris, Partner Hudson Cook; former CFPB Deputy Enforcement Director
• Nicholas Smyth, Assistant Director of the Pennsylvania Office of Attorney General’s Bureau of Consumer Protection, Senior Deputy Attorney General

Members of the public that plan to attend the symposium should RSVP at: https://consumer-financial-protection-bureau.forms.fm/cfpb-symposium-on-unfair-deceptive-or-abusive-acts-or-practices-udaap-2

The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by regularly identifying and addressing outdated, unnecessary, or unduly burdensome regulations, by making rules more effective, by consistently enforcing federal consumer financial law, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov.

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BUREAU OF CONSUMER FINANCIAL PROTECTION SETTLES WITH STATE FARM BANK

For immediate release:

December 6, 2018

Media contact:

Office of Communications
Tel: (202) 435-7170

BUREAU OF CONSUMER FINANCIAL PROTECTION SETTLES WITH STATE FARM BANK

Company Violated the Fair Credit Reporting Act and Consumer Financial Protection Act in Furnishing Consumer-Report Information and Obtaining and Using Consumer Reports

WASHINGTON, D.C. — The Bureau of Consumer Financial Protection (Bureau) today announced a settlement with State Farm Bank, FSB, a federal savings association headquartered in Bloomington, Ill.

As described in the consent order, the Bureau found that State Farm Bank violated the Fair Credit Reporting Act, Regulation V, and the Consumer Financial Protection Act of 2010 by obtaining consumer reports without a permissible purpose; furnishing to credit-reporting agencies (CRAs) information about consumers’ credit that the bank knew or had reasonable cause to believe was inaccurate; failing to promptly update or correct information furnished to CRAs; furnishing information to CRAs without providing notice that the information was disputed by the consumer; and failing to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of information provided to CRAs.

Under the terms of the consent order, State Farm Bank must not violate the Fair Credit Reporting Act or Regulation V and must implement and maintain reasonable written policies, procedures, and processes to address the practices at issue in the consent order and prevent future violations.

The consent order is available at:

https://files.consumerfinance.gov/f/documents/bcfp_state-farm-bank_consent-order.pdf

The stipulation and consent to the issuance of a consent order is available at:

https://files.consumerfinance.gov/f/documents/bcfp_state-farm-bank_stipulation.pdf

BUREAU OF CONSUMER FINANCIAL PROTECTION ANNOUNCES DIRECTOR FOR THE OFFICE OF INNOVATION

 

Bureau of Consumer Financial Protection
For immediate release:

July 18, 2018
Media contact:
Office of Communications
Tel: (202) 435-7170

BUREAU OF CONSUMER FINANCIAL PROTECTION ANNOUNCES DIRECTOR FOR THE OFFICE OF INNOVATION

WASHINGTON, D.C. — Bureau of Consumer Financial Protection (Bureau) Acting Director Mick Mulvaney today announced he has selected Paul Watkins to lead the Bureau’s new Office of Innovation.

“I am delighted that Paul Watkins is bringing his deep expertise, track record of protecting consumers, and commitment to innovation to the Bureau,” said Acting Director Mulvaney. “I am confident that, under his leadership, the Office of Innovation will make significant progress in creating an environment where companies can advance new products and services without being unduly restricted by red tape that belongs in the 20th century.”

Acting Director Mulvaney recently created the Office of Innovation to focus on encouraging consumer-friendly innovation, which is now a key priority for the Bureau. The work that was being done under Project Catalyst will be transitioned to this new office. The Bureau intends to fulfill its statutory mandate to promote competition, innovation, and consumer access within financial services. To achieve this goal, the new office will focus on creating policies to facilitate innovation, engaging with entrepreneurs and regulators, and reviewing outdated or unnecessary regulations.

Watkins comes to the Bureau from the Arizona Office of the Attorney General, where he was in charge of the office’s fintech initiatives. He managed the FinTech Regulatory Sandbox, the first state fintech sandbox in the country, which allows a company limited access to the marketplace in exchange for relaxing some regulations. Watkins was also the Chief Counsel for the Civil Litigation Division. In that role, he managed the state’s litigation in areas such as consumer fraud, antitrust, and civil rights. Previously, Watkins practiced at Covington & Burling LLP in San Francisco and Simpson, Thacher & Bartlett LLP in Palo Alto, Calif. He is a graduate of Hillsdale College and Harvard Law School, and a former clerk for Judge Dennis W. Shedd on the United States Court of Appeals for the Fourth Circuit.

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About the Bureau

The Bureau of Consumer Financial Protection is a 21st century agency that helps consumer finance markets work by regularly identifying and addressing outdated, unnecessary, or unduly burdensome regulations, by making rules more effective, by consistently enforcing federal consumer financial law, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov.

BUREAU OF CONSUMER FINANCIAL PROTECTION SETTLES WITH TRITON MANAGEMENT GROUP

Media contact:
Office of Communications
Tel: (202) 435-7170

BUREAU OF CONSUMER FINANCIAL PROTECTION SETTLES WITH TRITON MANAGEMENT GROUP

Triton Did Not Properly Disclose Terms and Conditions of Certain Loan Products, and Failed to Disclose Finance Charges in Advertisements

WASHINGTON, D.C. — The Bureau of Consumer Financial Protection (Bureau) today announced a settlement with Triton Management Group, Inc., a small-dollar lender that operates in Alabama, Mississippi, and South Carolina under several names including “Always Money” and “Quik Pawn Shop.”

As described in the consent order, the Bureau found that Triton violated the Dodd-Frank Wall Street Reform and Consumer Protection Act and the disclosure requirements of the Truth in Lending Act by failing to properly disclose finance charges associated with their auto title loans in Mississippi. The Bureau also found that Triton used advertisements that failed to disclose the annual percentage rate and other information required by the Truth in Lending Act.

Under the terms of the consent order, Triton and its subsidiaries are barred from misrepresenting the costs and other terms of their loans and must return unlawful fees paid by consumers. The order enters a judgment of $1,522,298 against Triton, which represents the undisclosed finance charges consumers paid on their Triton loans. As explained in the order, full payment of this amount is suspended subject to Triton’s paying $500,000 to affected consumers.

The consent order filed today is available at: https://files.consumerfinance.gov/f/documents/bcfp_triton-management-group_consent-order_2018-07.pdf

 

Bureau of Consumer Financial Protection Settles With Citibank, N.A.

 

For immediate release:

June 29, 2018

Media contact:

Office of Communications
Tel: (202) 435-7170

Bureau of Consumer Financial Protection Settles With Citibank, N.A.

Citibank Failed to Reevaluate and Reduce the Annual Percentage Rates for Consumer Credit Card Accounts

WASHINGTON, D.C. — Today the Bureau of Consumer Financial Protection (Bureau) announced a settlement with Citibank, N.A.

As described in the consent order, the Bureau concluded that Citibank violated the Truth in Lending Act by failing to reevaluate and reduce the annual percentage rates (APRs) for approximately 1.75 million consumer credit card accounts consistent with regulatory requirements, and by failing to have reasonable written policies and procedures to conduct the APR reevaluations consistent with regulation.

Under the terms of the consent order, Citibank must correct these practices and pay $335 million in restitution to consumers affected by these practices. The Bureau did not assess civil money penalties based on a number of factors, including that Citibank self-identified and self-reported the violations to the Bureau, and self-initiated remediation to affected consumers.

The consent order is available at: https://files.consumerfinance.gov/f/documents/bcfp_citibank-na_consent-order_2018-06.pdf

CONSUMER FINANCIAL PROTECTION BUREAU ISSUES REQUEST FOR INFORMATION ON CONSUMER FINANCIAL EDUCATION

FOR IMMEDIATE RELEASE:
April 4, 2018

CONTACT:
Office of Communications
Tel: (202) 435-7170

CONSUMER FINANCIAL PROTECTION BUREAU ISSUES REQUEST FOR INFORMATION ON CONSUMER FINANCIAL EDUCATION

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (Bureau) today issued a Request for Information (RFI) on consumer financial education. The Bureau is seeking comments and information from interested parties to assist the Bureau in assessing the overall efficiency and effectiveness of its consumer financial education programs. This includes the Bureau’s delivery of financial education through online tools, print publications, and community collaborations. This the 11th in a series of RFIs announced as part of Acting Director Mick Mulvaney’s call for evidence to ensure the Bureau is fulfilling its proper and appropriate functions. This RFI will provide an opportunity for the public to submit feedback and suggest ways to improve outcomes for both consumers and covered entities. The next RFI in the series will address consumer inquiries, and will be issued next week.

The RFI on consumer financial education is available at: https://files.consumerfinance.gov/f/documents/cfpb_rfi_consumer-education_042018.pdf

The CFPB will begin accepting comments once the RFI is printed in the Federal Register, which is expected to occur on approximately April 9. The RFI will be open for comment for 90 days.

More information about the call for evidence is available at: https://www.consumerfinance.gov/policy-compliance/notice-opportunities-comment/open-notices/call-for-evidence/

CFP: New Rule Making Authorities – United States Dodd-Frank Act

FOR IMMEDIATE RELEASE:
March 14, 2018

CONTACT:
Office of Communications
Tel: (202) 435-7170

CONSUMER FINANCIAL PROTECTION BUREAU ISSUES REQUEST FOR INFORMATION ON ADOPTED REGULATIONS AND NEW RULEMAKING AUTHORITIES

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (Bureau) today issued a Request for Information (RFI) on the Bureau’s adopted regulations and new rulemaking authorities. The Bureau is seeking comments and information from interested parties to assist the Bureau in considering whether it should amend any rules it has issued since its creation or issue rules under new rulemaking authority provided for by the Dodd-Frank Act. This is the eighth in a series of RFIs announced as part of Acting Director Mick Mulvaney’s call for evidence to ensure the Bureau is fulfilling its proper and appropriate functions to best protect consumers. This RFI will provide an opportunity for the public to submit feedback and suggest ways to improve outcomes for both consumers and covered entities. The next RFI in the series will address the Bureau’s inherited regulations and inherited rulemaking authorities, and will be issued next week.

The RFI on adopted rules is available at: https://files.consumerfinance.gov/f/documents/cfpb_rfi_adopted-regulations_032018.pdf

The CFPB will begin accepting comments once the RFI is printed in the Federal Register, which is expected to occur on approximately March 19. The RFI will be open for comment for 90 days.

The Bureau anticipates issuing RFIs on the following topics in the coming weeks:

  • Inherited Rules
  • Guidance and Implementation Support
  • Consumer Education
  • Consumer Inquiries

More information about the call for evidence is available at: https://www.consumerfinance.gov/policy-compliance/notice-opportunities-comment/open-notices/call-for-evidence/