Consumer Financial Protection Bureau (CFPB)
CFPB Orders TD Bank to Pay $28 Million for Breakdowns that Illegally Tarnished Consumer Credit Reports
The CFPB has ordered TD Bank to pay $7.76 million to tens of thousands of victims of the bank’s illegal actions. TD Bank has continuously shared inaccurate, negative information about their customers to consumer reporting companies. This information included systemic errors regarding credit card delinquencies and bankruptcies. In addition, the CFPB is ordering TD Bank to pay a $20 million civil money penalty.
Consumer reports, including credit reports, employment screening reports, tenant screening reports, and other background reports, are used by financial institutions, employers, and landlords, among others, to decide whether to extend credit, housing, or employment opportunities to a consumer. The inaccurate information provided by TB Bank negatively impacted these reports. Once TD Bank realized the error, it took them too long to make the appropriate corrections.
TD Bank harmed consumers by:
CFPB Bans Navient from Federal Student Loan Servicing and Orders the Company to Pay $120 Million for Wide-Ranging Student Lending Failures
The CFPB has filed a proposed order against Navient, the student loan servicer, for its years of failure and lawbreaking. The proposed order would permanently ban the company from servicing federal Direct Loans and would forbid the company from directly servicing or acquiring most loans under the Federal Family Education Loan Program. This ban would remove Navient from a market in which it steered
numerous student loan borrowers into costly repayment options. In addition, the company also illegally deprived student borrowers of opportunities to enroll in more affordable income driven repayment plans and forced them to pay much more than they should have. If approved by the courts, Navient would have to pay a $20 million penalty and provide $100 million in redress for harmed borrowers.
The CFPB’s investigation has resulted in more than $50 billion in debt relief for more than 1 million borrowers who were wrongly steered info forbearance, as well as those who had payments miscounted. The CFPB has sued Navient for failing borrowers at every stage of repayment. The lawsuit alleges that Navient steered borrowers who may have qualified for income-driven repayment plans into forbearance instead because it was cheaper and simpler for Navient but detrimental for borrowers. By steering struggling borrowers' info forbearance, borrowers were forced to pay additional interest charges.
Navient violated the Consumer Financial Protection Act, the Fair Credit Reporting Act, and the Fair Debt Collection Practices Act. In addition to these violations, the CFPB alleges that Navient also harmed student loan borrowers by the following:
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