The CFPB today issued a “Supervisory Highlights” report focusing on recent examiner observations of several financial products. Among other things, examiners flagged issues related to auto servicing, consumer reporting, credit card account management, debt collection, deposits and mortgage origination, mortgage servicing and payday lending.
Examiners flagged COVID-related issues related to deposits, including instances where consumers may have lost access to pandemic relief benefits due to banks’ garnishment practices or other setoff practices. Examined institutions were directed to refund any protected economic impact payment funds and related garnishment fees, and review and update policies to ensure compliance. COVID-related issues were also observed in mortgage servicing pertaining to the charging of illegal fees during the CARES Act forbearance period and failure to process CARES Act forbearance requests.
With respect to credit card account management, examiners cited unfair or deceptive acts or practices related to the marketing, sale and servicing of credit card add-on products to consumers, as well as deceptive representations regarding the fixed payment option for automatic withdrawal of the minimum payment due.
