June 20, 2016 |
For years, the Consumer Financial Protection Bureau worked to integrate the mortgage-loan disclosures required by the Truth in Lending Act and the Real Estate Settlement Procedures Act of 1974. The bureau's work, done under the TILA-RESPA Integrated Disclosure Rule, or TRID, resulted in new requirements that went into effect in October. One major goal of the overhaul was to help borrowers understand and cope with the deluge of documents they must read and sign prior to closing on a mortgage.
May 18, 2016 |
New consumer-protection rules expected to take effect next year will unleash a flood of suits against banks, credit card firms and others, says a lawyer who has been battling for financial service clients for much of his career. Alan Kaplinsky, head of Ballard Spahr's financial services group, said a proposal by the federal Consumer Financial Protection Bureau to drop a prohibition on class-action lawsuits in many credit card and banking contracts would spur plaintiffs lawyers to sue. "We are going to see a huge increase in class actions," he said.
May 10, 2016 |
Tucked into our cellphone bills, credit-card statements, checking accounts, car leases, and private student loans is language most of us never read. If we have a problem with the company, it says, we can't sue. Instead, we have agreed to something called arbitration. That may be about to change. The Consumer Financial Protection Bureau (CFPB) unveiled last week a proposal that could allow U.S. consumers to sue rather than be subject to mandatory arbitration. The agency is seeking comments from the public until June 12. The outcome could be a win for the consumer, advocates say. "We applaud the Consumer Financial Protection Bureau for proposing a strong rule to prevent lawbreaking financial institutions from using 'fine print' arbitration clauses to ban class actions," said Joanne Doroshow, executive director of the Center for Justice and Democracy.
November 8, 2015 |
Maybe it's my sense of humor, but this recent comment by Richard Cordray, director of the Consumer Financial Protection Bureau, made me chuckle: "Despite strong protections that have been put in place to protect homeowners, this month's complaint report shows consumers are still having problems when dealing with their mortgages. " I'd like to think that all the federal government has to do is snap its collective fingers and all our problems will go away, but I wasn't born yesterday.
June 7, 2015 |
The Consumer Financial Protection Bureau ordered mortgage lender and servicer PHH Corp., of Mount Laurel to pay more than $109 million within 30 days for accepting loan kickbacks in the form of reinsurance premiums. Bureau director Richard Cordray affirmed late Thursday an administrative law judge's ruling that PHH, one of the nation's top 10 home lenders, violated the Real Estate Settlement Procedures Act when it accepted kickbacks for mortgages that closed on or after July 21, 2008.
June 6, 2015
Extra cash. Steady income no matter how long you live. No need to repay. Both explicitly and implicitly, reverse-mortgage pitches often make the equity-tapping loans sound like a risk-free answer for borrowers facing a shortfall in retirement income. But they have a failure rate of about 10 percent, far beyond those of conventional mortgages. That's one reason the Consumer Financial Protection Bureau moved Thursday to advance its campaign aimed at ensuring that homeowners understand their risks, as well as their benefits.
May 16, 2015 |
The Consumer Financial Protection Bureau (CFPB) on Thursday began a public inquiry into student loans. The bureau is seeking information from the public including: industry practices that create repayment challenges; hurdles for distressed borrowers; and economic incentives that may affect the quality of loan servicing. To give information about your student loan repayment problems, visit the CFPB's website ( www.consumerfinance.gov ). The CFPB asks the public to not include account numbers or Social Security numbers when filing.
March 28, 2015 |
Stepping gingerly into one of the finance industry's longest-running controversies, the Consumer Financial Protection Bureau said Thursday that it has begun shaping rules to govern payday loans and other small, short-term credit offered at triple-digit interest rates - products that consumer advocates have for years labeled debt traps. The agency's announcement - quickly embraced by President Obama, blasted by lenders' lobbyists, and hesitantly welcomed by advocacy groups - was long foreseen.
December 29, 2014 |
The top consumer stories of 2014? It depends on how you count and what you care about - or maybe even on where you sit. If you've been sitting, say, in the back seat of a Toyota in recent weeks - after the automaker's unusual advice to avoid the front passenger seat while waiting for back-ordered Takata airbag parts - then the year's topmost consumer story may be the series of disclosures about how the auto industry hides risky defects. Were you one of roughly 10 million Americans who gained health insurance in 2014?
October 20, 2014 |
Sign a contract for goods or services, and you've got at least three days to back out, right? Wrong, as readers of this month's Inquirer report on Sundance Vacations should know. The Wilkes-Barre business sells lodging packages under contracts that say they are "not subject to any 'right of rescission' and may not be canceled. " Although some Wisconsin lawyers disagree, saying their state's timeshare law provides a seven-day escape clause, Sundance has escaped legal challenge in Pennsylvania.