The Consumer Financial Protection Bureau is not content to sit tight. The agency has passed new regulations and begun waging lawsuits against financial providers that run afoul of consumer protection laws, with charge card corporations being the very first in the firing line. After winning lawsuits against Discover and Capital One, American Express is the most recent to settle with the CFPB, along with other agencies, and has consented to refund $85 million to consumers.
Consumer Financial Protection Bureau not happy with charge card companies
The CFPB isn't wasting much time getting stuck in and performing the task that it was created to do. Besides making brand new regulations to better protect customers and proposing reforms, it has also begun lodging lawsuits against financial service providers that have fallen afoul of regulations, in conjunction with other federal companies.
Both Discover and Capital One have already faced suits from the Consumer Financial Protection Bureau amounting to over $200 million in settlements. A ton of that cash is going back to consumers according to NBC News. It seems charge card businesses have been the first targets.
Another lawsuit was just recently settled with American Express too, according to CBS. However, the suit did not just contain the Consumer Financial Protection Bureau. There were also complains from the Federal Reserve, regulators in Utah State, the Federal Deposit Insurance Business, and the Office of the Comptroller of Currency.
$85 million returning to consumers
American Express is in trouble for breaking multiple laws, including failing to report billing disputes and regulations about debt collection and reporting. It also charged late charges over legal limits and made false claims about rewards. Also, applicants over the age of 35 were discriminated against.
The credit card company is ordered to pay $27.5 million in fines and $85 million back to customers in a refund.
The brouhaha over late charges, according to CBS, was due to charging late charges depending on a percentage but, according to CNN, subsidiaries American Express Centurian Bank and American Express Bank set the rate in excess of already established limits. American Express Centurian Bank also offered $300 to qualified consumers who were approved for an American Express "Blue Sky" card, which some consumers never received.
American Express Centurian Bank also instituted a credit scoring system based on age, which is contrary to anti-discrimination laws.
Also issue of debt procedures
American Express, American Express Bank and American Express Centurian Bank also told some consumers that they could improve credit scores by paying off debts that were at least 7 years old, which do not affect credit scores. These violations, according to CBS, are said to have been going on from 2003 to this year.
There are about 250,000 people who will get part of the $85 million allotted to refunds. They should, according to NBC News, get it in March 2013.
Consumer Financial Protection Bureau not happy with charge card companies
The CFPB isn't wasting much time getting stuck in and performing the task that it was created to do. Besides making brand new regulations to better protect customers and proposing reforms, it has also begun lodging lawsuits against financial service providers that have fallen afoul of regulations, in conjunction with other federal companies.
Both Discover and Capital One have already faced suits from the Consumer Financial Protection Bureau amounting to over $200 million in settlements. A ton of that cash is going back to consumers according to NBC News. It seems charge card businesses have been the first targets.
Another lawsuit was just recently settled with American Express too, according to CBS. However, the suit did not just contain the Consumer Financial Protection Bureau. There were also complains from the Federal Reserve, regulators in Utah State, the Federal Deposit Insurance Business, and the Office of the Comptroller of Currency.
$85 million returning to consumers
American Express is in trouble for breaking multiple laws, including failing to report billing disputes and regulations about debt collection and reporting. It also charged late charges over legal limits and made false claims about rewards. Also, applicants over the age of 35 were discriminated against.
The credit card company is ordered to pay $27.5 million in fines and $85 million back to customers in a refund.
The brouhaha over late charges, according to CBS, was due to charging late charges depending on a percentage but, according to CNN, subsidiaries American Express Centurian Bank and American Express Bank set the rate in excess of already established limits. American Express Centurian Bank also offered $300 to qualified consumers who were approved for an American Express "Blue Sky" card, which some consumers never received.
American Express Centurian Bank also instituted a credit scoring system based on age, which is contrary to anti-discrimination laws.
Also issue of debt procedures
American Express, American Express Bank and American Express Centurian Bank also told some consumers that they could improve credit scores by paying off debts that were at least 7 years old, which do not affect credit scores. These violations, according to CBS, are said to have been going on from 2003 to this year.
There are about 250,000 people who will get part of the $85 million allotted to refunds. They should, according to NBC News, get it in March 2013.
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