The Consumer Financial Protection Bureau (CFPB), a government agency originally created with the power to oversee, audit and punish banking and collection agencies, continues to address acts which it believes to be harmful to consumers or internal policies that are not sufficient to protect consumers from unfair, deceptive and abusive acts or practices
The Bureau is currently focusing on information access and student lending in early 2015. It recently issued guidelines restricting disclosure of confidential supervisory information, such as documents prepared by or for the CFPB or federal or state government usage and compliance reports. Under these new regulations, supervised financial institutions cannot disclose confidential supervisory information except in specific circumstances.
Other activity includes their partnership with the U.S. Department of Education to issue a $480 million forgiveness of student loans through Corinthian College, Inc.’s Genesis loan program.
This stems from the Bureau’s ongoing lawsuit against Corinthian College, which suggests that the college used false and deceptive advertising to encourage students to take loans and then subsequently use illegal debt collection tactics in an effort to force students into paying the loans back while they were still in school.
Also on the agenda for 2015, the CFPB is targeting credit card company fee structures and extending its supervisory authority. Read more about recent CFPB activity here: