Consumer Financial Protection Bureau

CFPB Reports on Loopholes in Military Lending Act

CFPB notes that the current definitions of credit products in the DoD’s MLA rules are too narrow and leave many military servicemembers at risk; only three credit products are defined. CFPB’s report emphasizes the need for the DoD to change the MLA rules to include all types of payday, installment, auto title loans, and open-end lines of credit. The DoD did expand the definitions of credit products to include longer-term loans and auto title loans in its latest proposed rules.

CFPB Proposed Rules for Prepaid Cards Offer Good Start on Consumer Protection

Many prepaid account holders use the product as an alternative to a basic checking account. Prepaid cards and accounts provide access to payment networks and a more secure option than carrying cash. Before the proposed rules, these products existed in a largely unregulated market and some contain fees and features that harm consumers, such as expensive overdraft credit.

More Thorough HMDA Reporting Will Help Detect Discrimination

HMDA requires most depository and non-depository financial institutions to report their mortgage lending activity and releases the data to the public. Recently, the Consumer Financial Protection Bureau (CFPB) issued new, proposed rules that would expand the reporting requirements of HMDA and promote greater transparency in the mortgage market. Woodstock submitted comments  today in support of these proposed rules.

CFPB Report Shows Repayment Struggle for Private Student Loan Borrowers

The Bureau saw an increase in complaints about private student loans this year. Altogether, there were 5,300 private student loan complaints, up 38 percent from last year. Despite receiving thousands of complaints, the CFPB was able to identify common threads in the experiences of the student loan borrowers. Many of the borrowers who reached out to CFPB noted their struggle with repaying their private student loans. Other common complaints included a lack of flexibility and options regarding repayments when a borrower is unable to repay a loan.

Comment letter to the Consumer Financial Protection Bureau recommending publication of consumer complaint narratives

This letter supports a proposal from the CFPB to publish consumer complaint narratives as part of its public consumer complaint database. The letter urges the CFPB to strengthen the proposal by providing more information to users when asking for their consent to publish their narrative; publishing responses from financial institutions in as much detail as possible; including more granular geographic data; and allowing complaint filers the option of publishing information on race, ethnicity, gender, and age.

Act now to expand transparency on consumer problems with financial institutions

For example, if a bank allows unauthorized charges to hit a borrower’s bank account, or a mortgage lender repeatedly loses loan modification paperwork, or a payday lender fails to disclose how much a loan would cost, the consumer can let the CFPB know by submitting a complaint. The institution must then respond to the complaint in a timely manner.

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