Rohit Chopra on LinkedIn: CFPB Takes Action Against Operator of Sendwave App for Illegally Cheating… (2024)

The Consumer Financial Protection Bureau is suing Horizon and its CEO Robert Kane for gouging low-income Americans and making it nearly impossible to cancel for a full refund.Horizon's credit card couldn't be used anywhere -- only at the company's overpriced online store. 93% of those consumers never used any Horizon product yet paid more than $45 million in fees.The Consumer Financial Protection Bureau will continue to closely scrutinize illegal fee harvesting and price gouging, and hold individual financial executives accountable for their role in wrongdoing.

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Student loan interest rates are at their highest level in almost two decades. A new analysis by the Consumer Financial Protection Bureau shows how rising interest rates will increase the costs for millions of student loan borrowers.

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Today, the Consumer Financial Protection Bureau is taking action to order Navient to pay $120 million in refunds and penalties for its wide-ranging student loan servicing failures. More importantly, Navient, formerly known as Sallie Mae, will be banned from ever directly servicing federal student loans.

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Today, the Consumer Financial Protection Bureau is ordering TD Bank to pay $28 million for illegally tarnishing the credit reports of its customers with fraudulent information. And when they found out, they barely lifted a finger to fix it. Rather than treating its customers fairly and following the law, TD Bank's management clearly cared more about growth and expanding its empire through mergers. Regulators will now need to focus major attention on TD Bank to change its course.

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Today, U.S. Department of Transportation Secretary Pete opened a probe into some of the big airline points programs. The inquiry seeks to better understand:- Rewards devaluation tactics- Hidden pricing and junk fees- Risks of reductions in competition and choiceThis probe builds on a recent Consumer Financial Protection Bureau-U.S. Department of Transportation hearing on credit card rewards. The Consumer Financial Protection Bureau is also closely scrutinizing credit card companies for their role in any sudden devaluation of points and any bait-and-switch tactics.

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Last week, I traveled to Alaska to meet with Tribal leaders, servicemembers at Joint Base Elmendorf-Richardson, financial institutions, and consumer advocates to discuss the consumer finance issues impacting Alaskans’ lives.Hearing from diverse voices across our country is crucial to understanding how well the Consumer Financial Protection Bureau is meeting the needs of various communities. For more about what I heard from Alaskans, tune in to my discussion with KYUK’s Steve Heimel. https://lnkd.in/e6JfxYZt

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The Consumer Financial Protection Bureau has sanctioned repeat offender NewDay USA for deceiving active duty servicemembers and veterans seeking cash-out refinance loans.NewDay USA baited veterans and military families into cash-out refinance mortgages by hiding the true costs of these loans, and their conduct has no place in the U.S. Department of Veterans Affairs home loan program.

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As consumers increasingly store and move their money using apps through mobile devices, we have seen a rise in Big Tech conglomerates extending their reach into banking and payments. Earlier this month, Apple announced that it would amend its regulations so developers can build apps to facilitate payments outside of Apple Pay and Apple Wallet, including tap-to-pay transactions. The Consumer Financial Protection Bureau wants to hear from developers and others on the true impact of this shift. In March, the U.S. Department of Justice sued Apple. Part of the lawsuit focused on the restrictive regulations on “tap-to-pay.” The Consumer Financial Protection Bureau has also heard from regulators and central banks from around the world that are concerned about Apple’s regulations. The CFPB is working to better understand further details about Apple’s announcement to determine whether it is a meaningful shift away from blocking competitive payments offerings from banks, credit unions, and technology companies other than Apple. We encourage developers and others with a stake in Apple’s regulations on contactless payments to contact the Consumer Financial Protection Bureau’s Office of Competition and Innovation at oci@cfpb.gov to share their thoughts.

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Many retailers have long offered a free "cashback" option when you pay with a debit card and want some extra cash. But that's changing.Today, a new Consumer Financial Protection Bureau analysis reveals that dollar stores and other big chains are now charging fees for cashback. Our analysis found that three big retailers -- Kroger, Dollar Tree, and Dollar General -- earn $90 million per year in these cash-back fees. As local banks get gobbled up or shut down, dollar stores and supermarket chains can gain the power to charge fees for cash. The Consumer Financial Protection Bureau will be working to ensure that consumers and businesses across the country can have a free option to access their own money.

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During the subprime mortgage crisis, predatory lending destroyed people’s financial lives. Today, the Consumer Financial Protection Bureau is acting to ensure that a form of home lending that targets religious communities, known as “contract for deed,” doesn’t follow the same path. The CFPB has found that investors are targeting people of faith with predatory mortgage products that set the borrower up to fail. The government is taking action to ensure that these products do not turn the dream of homeownership into a nightmare. In a ‘contract for deed,’ the borrower is often responsible for repairs, property taxes, and home improvements, while the seller retains the deed along with the ability to end the deal and kick out the borrower if a single payment is missed or is late. The CFPB has also released a consumer advisory on contract for deed financing to provide actionable steps for people who encounter illegal lending activity to assert their rights. https://lnkd.in/eHf*ck3B7

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