CFPB now taking complaints on prepaid cards, debt settlement services and more

more+
less-

Although we thought an announcement that the CFPB had begun taking complaints about new products would be made at its field hearing on consumer complaints last week, that announcement was made today. The CFPB announced that it is now taking complaints from consumers about prepaid cards, such as gift cards, benefit cards, and general purpose reloadable cards. It has also started to take complaints about debt settlement services, credit repair services, and pawn and title loans.

For prepaid cards, the issues now listed on the CFPB’s online complaint system from which consumers can select to describe a complaint are:

  • Problems managing, opening, or closing an account
  • Fees
  • Unauthorized transactions or other transaction issues
  • Advertising, marketing or disclosures
  • Adding money
  • Overdraft, savings or rewards features
  • Frauds or scams

For debt settlement and credit repair services, the issues listed from which consumers can select to describe a complaint are:

  • Excessive, unexpected or other fees
  • Advertising and marketing practices
  • Customer service/customer relations
  • Frauds or scams

For pawn and title loans, the issues listed from which consumers can select to describe a complaint are:

  • Unexpected fees or interest
  • Inability to stop lender from charging bank account
  • Receiving a loan that was not applied for or not receiving money on a loan
  • Lender charging bank account on wrong day or for wrong amount
  • Lender not crediting payment
  • Inability to contact lender
  • Lender sold property or damaged or destroyed property

The CFPB is expected to issue a proposed prepaid card rule at the end of this summer and has made debt relief and credit repair services the subject of numerous enforcement actions. Director Cordray has indicated that the CFPB would be looking at auto title loans in connection with its development of proposed regulations for payday and other small-dollar loans and that scrutiny of such products could be expanded to pawn loans.

Topics:  CFPB, Consumer Complaint System, Credit Repair Services, Debt Settlement Services, Pawn Brokers, Prepaid Payment Products, Title Loans

Published In: Consumer Protection Updates, Finance & Banking Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ballard Spahr LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »