As a result of an interim agreement with Citigroup Global Markets Inc., a subsidiary of Citigroup, more than 15,000 CGMI customers who were overcharged fees on their investment accounts will receive reimbursements of more than $4.5 million.
Consumers were overcharged when CGMI failed to rebate some customers’ accounts after periods of inactivity when fees shouldn’t have been charged.
CGMI identified the overcharges as part of an internal review conducted in cooperation with the Attorney General Office’s investigation of the company’s fees.
Discover Bank and its affiliates are being fined for illegal private student loan servicing practices and are also being required to refund money to consumers
The Consumer Financial Protection Bureau found that Discover overstated the minimum amounts due on billing statements and denied consumers information they needed to receive federal income tax benefits. The company also engaged in illegal debt collection tactics, including calling consumers early in the morning and late at night.
The bureau’s order requires Discover to refund $16 million to consumers, pay a $2.5 million penalty, and improve its billing, student loan interest reporting, and collection practices.
Along with the attorneys general in 47 states and the District of Columbia, the bureau found that Chase sold credit card accounts to debt buyers that included amounts that were inaccurate or debts not owed by the consumer, the regulators announced Wednesday. Debt buyers then tried to collect the faulty debts it purchased from Chase.
The bureau is ordering Chase to reform its debt sales practices to prohibit it from selling certain types of debt, such as old or disputed debts and “zombie debt,” which are debts that debt collectors repeatedly attempt to collect, even when it’s not collectible. Chase will also be required to provide documentation to debt buyers when it does sell debts, and its debt buyers can’t re-sell debts they buy from Chase.
JP Morgan Chase Bank will modify its procedures for screening consumers who apply for checking accounts so more consumers will be able to open accounts, under an agreement with the New York Attorney General’s Office.
Chase, which offers the option of a prepaid debit card known as the Liquid Card to consumers who don’t qualify for a checking account, will also allow those consumers to pay bills online or have Chase mail checks for them at no additional charge, Attorney General Eric T. Schneiderman said Tuesday.
These changes will allow card users to pay their rent, utilities, and other bills without having to use high-cost alternative financial services such check-cashing outlets and money transmitters.
Six big banks, including JPMorgan Chase and Wells Fargo, are facing new restrictions on their mortgage operations after a federal bank regulator determined they didn’t do enough to correct problems with their foreclosure practices following the housing financial crisis.
In a 2011 consent order with the Office of the Comptroller of the Currency, the banks had promised to improve how they handled foreclosures.
The OCC announced Wednesday that JPMorgan Chase, Wells Fargo, EverBank, HSBC, Santander, and U.S. Bank are now required to get approval from the agency for appointments of senior officers responsible for residential mortgage servicing, to set up off shore call centers, and to acquire mortgage servicing business that collect payments and handle foreclosures.
With interest rates and gas prices low and the average vehicle being more than 11 years old, some consumers may be looking for a bargain during this year’s Memorial Day sales.
In order to help consumers find the best deals in financing, WalletHub has released the latest installment of its 2015 Auto Financing Report. It analyzes auto loan and lease offers from more than 150 companies and financial institutions offering the loans.
Five global banks have agreed to plead guilty to felony charges and pay $5.4 billion in fines.
Citicorp, JPMorgan Chase, Barclays, and the Royal Bank of Scotland have agreed to plead guilty to conspiring to manipulate the price of U.S. dollars and euros exchanged in the foreign currency exchange, or FX, spot market, and the banks have agreed to pay fines of $2.5 billion, the Justice Department said Wednesday.
A fifth bank, UBS, has agreed to plead guilty to manipulating the London Interbank Offered Rate, or LIBOR, and other benchmark interest rates and pay a $203 million criminal penalty, after breaching its December 2012 agreement resolving a LIBOR investigation.
I remember when financial institutions started offering interest on checking accounts. I was excited, but quickly became disappointed then all the interest I received was about $2 a year.
A new survey shows that some financial institutions are offering higher interest rates now, but consumers are required to meet certain requirements before they get the interest.
Twenty checking accounts offered by U.S. banks and credit unions yield 2 percent or more, according to Bankrate.com. With the average money fund yielding just .01 percent, these high-yield checking accounts can be a great alternative for qualifying savers. All 20 accounts are federally insured and, unlike a CD, are completely liquid.
Arbitration agreements restrict consumers’ ability to resolve disputes on financial products and services because class actions lawsuits aren’t allowed, according to a report released Monday by the Consumer Financial Protection Bureau.
The report found that few consumers resolve disputes through arbitration or the federal courts, while millions of consumers could do so through class action settlements.
The bureau’s report also found that more than 75 percent of consumers surveyed didn’t know about arbitration clauses, and less than 7 percent of those covered by arbitration clauses realize that the clauses restricted their ability to sue in court.
“Now that our study has been completed, we will consider what next steps are appropriate,” said Richard Cordray, director of the bureau.