CFPB Supervisory Highlights asserts ‘wide-ranging violations’ of consumer protection laws in 2021

Asserting that it found “wide-ranging violations of law in 2021,” the federal consumer financial protection agency Wednesday issued a report that claimed “irresponsible or mismanaged firms” harmed Americans during the coronavirus crisis.

In a release, the Consumer Financial Protection Bureau (CFPB) charged that its Supervisory Highlights report found that: mortgage servicers charged improper fees to borrowers enrolled in forbearance offered through legislation passed to help consumer weather the crisis (the Coronavirus Aid, Relief, and Economic Security (CARES)) Act; payday lenders improperly debited consumer bank accounts; remittance providers failed to investigate notice of errors in timely fashion; and examiners found fair lending violations.

The bureau said the report describes violations found in areas such as auto loan servicing, consumer reporting, debt collection, deposits, fair lending, mortgage origination and servicing, private student loan origination, payday lending, and student loan servicing.

“Today’s report reveals that irresponsible or mismanaged firms harmed Americans during the COVID-19 pandemic,” said CFPB Director Rohit Chopra in a statement. “We will continue to supervise firms to halt harmful practices before they become widespread.”

CFPB Report Highlights Supervisory Findings of Wide-Ranging Violations of Law in 2021