Posts Tagged ‘CFPB’

Trump’s Consumer Watchdog: $1 Fine for Swindling Veterans

January 28, 2019

Trump's Consumer Watchdog: $1 Fine for Swindling Veterans

“The Consumer Financial Protection Bureau penalized a man $1 this week, for illegally exchanging veterans’ pensions for high-interest “cash advances.” Mark Corbett claimed in sworn statements to the bureau that he had an inability to pay any fine of greater value, and the bureau accepted $1 as payment for making illegal, high-cost loans to former members of the armed forces.”

“This is not the first time during the Trump administration that CFPB has taken an inability to pay into account to reduce a fine for violations of consumer protection law. Under the previous acting director, current acting White House chief of staff Mick Mulvaney, this type of reduction was so widespread that it came to be known as the ‘Mulvaney discount.’ The American justice system rarely treats impoverished defendants with such mercy.

Mulvaney has since been replaced by a confirmed director, his former aide Kathy Kraninger. The discount, however, has remained.”

—  “Trump’s CFPB Fines a Man $1 For Swindling Veterans, Orders Him Not to Do It Again,” David Dayen, The Intercept

More:

“Trump Appointee Issues One Dollar Fine for Scamming Veterans,” Will Corbett, Center For Responsible Lending

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Image by Mike Licht. Download a copy here. Creative Commons license; credit Mike Licht, NotionsCapital.com

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CFPB Fines Firm $19.3 Million for ‘Bait-and-Switch’ Mortgages

August 24, 2014

CFPB Fines Bank $20 Million for 'Bait-and-Switch'Mortgages

Earlier this month the Consumer Financial Protection Bureau fined Amerisave Mortgage Corporation and an affiliate over $20 million for “bait-and-switch” practices. The firm advertised misleading interest rates, locked consumers in with steep up-front fees, failed to honor the low rates and illegally overcharged customers for third-party services. Amerisave will refund $14.8 million to the “baited” consumers and pay a $4.5 million penalty, and the firm’s CEO Patrick Markert will pay an additional $1.5 million penalty.

More:

“Amerisave to pay $19.3M for bait-and-switch mortgage scheme,” Phil W. Hudson, Atlanta Business Chronicle

“CFPB fines deceptive mortgage company $20M,” Jeff Gelles, Philadelphia Inquirer

“CFPB Orders Amerisave To Pay $19.3 Million For Bait-And-Switch Mortgage Scheme,” CFPB press release

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Short link: http://wp.me/p6sb6-jKZ

Image by Mike Licht. Download a copy here. Creative Commons license; credit Mike Licht, NotionsCapital.com

Comments are welcome if they are on-topic, substantive, concise, and not boring or obscene. Comments may be edited for clarity and length.

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