CFPB Releases Summer 2024 Supervisory Highlights

The CFPB recently released its Supervisory Highlights for Summer 2024, focusing on areas where financial institutions are falling short in protecting consumers. A summary of some of the CFPB’s key findings is below:

Auto Loan Servicing:

• Autopay Issues: Some servicers automatically stopped processing final payments through autopay without notifying consumers, leading to late fees. The CFPB recommends revising policies to include final payments in autopay or provide clear notification for manual payments.

• Student Loan Servicing: Certain servicers engaged in abusive practices by:
  • Making it difficult to get help with excessive call center wait times.
  • Providing inaccurate information about loan forbearance programs.
  • Failing to notify consumers about larger pre-authorized electronic transfers.

Debt Collection:

• The CFPB found unfair debt collection practices, including:
  • Failing to provide debt validation notices.
  • Collectors that identify themselves using inaccurate company names or failing to provide initial disclosures.
  • Contacting consumers at inconvenient times or places.
  • Employing harassing or abusive language.
  • Failing to honor requests to cease communication through a specific method.
  • Not disclosing that a communication is from a debt collector.
  • Incorrectly calculating or documenting the statute of limitations on credit card debt.

Deposits and Prepaid Accounts:

• Examiners observed issues with:
  • Account freezes: Some institutions failed to notify consumers about frozen accounts or provide clear instructions for unfreezing them.
  • Missing statements: Servicemembers and federal employees did not receive periodic statements for allotment savings accounts.
  • Consumer information access: Creditors charged fees for providing account information.