Consumer Financial Protection Bureau

20 Stories

5.3K Wells Fargo Workers Fired for Creating Fake Accounts

Employees got bonuses; customers got extra fees

(Newser) - Wells Fargo has been slapped with a record $185 million penalty over a scam carried out by its own employees—5,300 of whom were fired. The Consumer Financial Protection Bureau says Wells Fargo workers trying to reach sales targets opened around 2 million phony deposit or credit card accounts,... More »

Feds Aiming Crackdown at 'Chameleon' Lenders

Consumer Financial Protection Bureau steps in to end 'black hole' of debt

(Newser) - Payday loans can lead to what one borrower describes to the New York Times as a "black hole," with one high-interest short-term loan leading to another as borrowers struggle to repay the money. While state laws have targeted the problem, federal agencies have stayed out of the matter—... More »

Students Default on Loans Over Obscure Provision

... even if they've been paying on time

(Newser) - Because the nation's student-debt situation wasn't enough of a mess: A new federal report warns that some students are going into default even when they've been paying back their loans on time, reports USA Today . It's because of an obscure provision covering private student loans—if... More »

AmEx to Cough Up $75M Over Deceptive Practices

335K consumers will get refunds for credit card add-on programs

(Newser) - American Express has agreed to pony up $75.7 million over what the Consumer Financial Protection Bureau is calling "deceptive marketing to sell credit card add-on products," reports the LA Times . Some $59.5 million of that will go toward refunds to the 335,000-plus consumers who were... More »

Senate GOP Is Neutering Our Consumer Watchdog

GOP wants to kill watchdog aimed at preventing another 2008: Krugman

(Newser) - Four-plus years after Wall Street's meltdown "brought the world economy to its knees," at least we have a Consumer Financial Protection Bureau to prevent us from ever toppling over that cliff again. Or do we? Not if Senate Republicans, who are "going all out in an... More »

Obama to Pick Prosecutor to Head SEC: Report

Mary Jo White to head SEC, Richard Cordray to head CFPB

(Newser) - Is the SEC about to get tougher? President Obama intends to nominate former US Attorney Mary Jo White to head the organization, sources tell the AP . White spent nearly a decade prosecuting white collar criminals in Manhattan, and has a reputation as a particularly dogged prosecutor of financial fraud cases... More »

CFPB Mortgage Overhaul Bans Lots of Shady Practices

While also protecting banks from lawsuits

(Newser) - The newly-minted Consumer Financial Protection Bureau is circulating a series of new mortgage regulations that would ban some of the least savory tactics of the bubble era, the New York Times reports. Banks won't be able to offer deceptive teaser rates, or charge balloon payments, for example. They'll... More »

Student Loan Debt Passes $1T

Figure much higher than expected

(Newser) - America's student loan debt is a lot higher than previously believed, a fact that may create a drag on the economy for years to come, according to a new report from the Consumer Financial Protection Bureau. Total debt passed $1 trillion late last quarter, officials told a banking conference... More »

Courts Could Nix Obama Recess Appointments

Courts may not want to say what constitutes a Senate session

(Newser) - Legal experts doubt President Obama's controversial "recess appointment" of Richard Cordray will hold up in court—including some experts who've sided with him in the past, the Hill reports. "It's untested ground," says one Harvard constitutional law expert. "If I were a judge,... More »

Obama Will Appoint Cordray Watchdog

Bucks GOP with recess appointment

(Newser) - President Obama is thumbing his nose at Republican opposition and will today name a new US chief consumer watchdog: Richard Cordray. Yep, the same Cordray who Senate Republicans blocked early last month. Obama's decision to make a recess appointment is certain to cause an uproar—he's essentially declaring... More »

Senate GOP Blocks Obama CFPB Nominee

Richard Cordray won't head consumer protection bureau

(Newser) - As expected, Senate Republicans today blocked President Obama's choice to head the Consumer Financial Protection Bureau he created. Few questioned Richard Cordray's credentials for the job, notes the AP , which reports that the former Ohio attorney general fell victim to a "particularly nasty partisan fight." Only... More »

Feds Test Simplified Credit Card Agreement

Short form in plain English could become industry standard

(Newser) - The government's consumer finance watchdog has created a credit card agreement that's five times shorter than usual and written in plain English. The Consumer Financial Protection Bureau is asking for the public's feedback on the prototype, which can be viewed here . The agreement is just over 1,... More »

BofA CEO: We Have a Right to Make a Profit

'Our customers will understand' $5 debit card fee

(Newser) - Bank of America CEO Brian Moynihan defended his bank’s controversial new $5 debit card fee in a CNBC interview yesterday, saying that most customers would avoid it, and that the bank had given customers plenty of warning about it. Asked to respond to President Obama’s statement that banks... More »

Obama Knocks Bank of America Debit Card Fee

'You don't have some inherent right to a certain amount of profit'

(Newser) - President Obama made waves in his latest interview with George Stephanopoulos of ABC , in which he spoke out against Bank of America’s unpopular new $5 fee for debit card users . “This is exactly why we need this Consumer Finance Protection Bureau,” Obama said. Asked directly if he... More »

Elizabeth Warren Senate Run Looks Likely

She is expected to challenge Scott Brown in Massachusetts

(Newser) - Pencil it in as one of the better Senate races to watch in 2012: Elizabeth Warren vs. Scott Brown in Massachusetts. It now looks like a safe bet that Warren will enter the contest, writes Sam Stein in the Huffington Post . Warren herself ratcheted up the speculation by posting a... More »

Paying Cash? Credit Cards Are Still Costing You Money

Rebates drive up prices for all but reward only users of plastic: Economist

(Newser) - Credit card rebates and rewards may seem like a great thing—like getting free money. The problem is that they're driving up the prices of everything we buy, writes economics professor Larry Harris. What's worse, people who pay cash—maybe because they're too poor to qualify for... More »

Elizabeth Warren Sly About Senate Run

Says she's going home to Massachusetts 'to think'

(Newser) - Elizabeth Warren might be out of that gig at the CFPB today, but that's only got tongues wagging busily about her future job prospects: namely, a run for Scott Brown's Massachusetts Senate seat, reports the Hill. Warren herself declined to rule out a run when asked by MSNBC... More »

Long Banks' Worst Enemy, Warren Now Courts Them

'She's listening' as she sets up Consumer Financial Protection Bureau

(Newser) - Elizabeth Warren is the longtime bane of the banking industry's existence, but as she prepares the new Consumer Financial Protection Bureau, the woman who once slammed Wall Street's finest as "the people who drove the car off the cliff" is now killing them with kindness. In many cases, they’... More »

Obama: Warren Will Fight for Middle Class

President taps adviser to set up consumer protection agency

(Newser) - President Obama named Wall Street critic Elizabeth Warren a special adviser today and tasked her with setting up a new agency to look out for consumers. Calling Warren "one of the country's fiercest advocates for the middle class," Obama said the new bureau would end abusive practices. "... More »

Elizabeth Warren Will Help Set Up Consumer Agency

Obama will appoint her to Treasury post, avoid hearings

(Newser) - President Obama will appoint Wall Street critic Elizabeth Warren as a special adviser to oversee the creation of a new consumer protection bureau, a Democratic official said today. Warren would report to both the Treasury Department and the White House in a role that would not require Senate confirmation . More »

20 Stories

AROUND THE WEB