Blog: CFPB report examines supervisory legal violations – Financial Regulation News – Financial Regulation News

The Consumer Financial Protection Bureau (CFPB) has released a new report the agency indicated targets legal violations identified during supervisory examinations in the first half of this year.

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Officials noted the Supervisory Highlights report, which reviews whether companies are complying with federal consumer financial protection law, determined there were issues related to credit reporting failures, junk fees, and mishandling of COVID-19 protections.

“The CFPB’s supervision efforts limit the spread of potentially unlawful practices and consumer harm,” CFPB Director Rohit Chopra said. “The CFPB’s examination program continues to identify problematic practices and stop them before they spread.”

Per the analysis, CFPB examiners revealed one or more of the nationwide consumer reporting companies failed to report to the agency the outcome of their reviews of complaints about inaccuracies on consumers’ credit reports; mortgage servicers violated federal law by charging phone payment fees that consumers were not made aware they were paying; examiners identified legal violations connected to add-on product charges, loan modifications, double billing, electronic devices interfering with driving and debt collection tactics; and identified mishandling of COVID-19 protection policies and procedures potentially resulting in people losing their pandemic relief benefits due to garnishments or setoff practices.

The CFPB noted that when examiners uncover problems, they share the findings with companies to help remediate violations.

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