The CFPB issued a report detailing the issues faced by consumers regarding credit card rewards programs and reminding credit card industry stakeholders that federal consumer protection laws—including the Consumer Financial Protection Act’s prohibition against unfair, deceptive, or abusive acts or practices—apply to rewards programs offered in connection with consumer financial products or services.

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Massachusetts AG Andrew Joy Campbell, Pennsylvania AG Michelle Henry, Iowa AG Brenna Bird, and the U.S. Department of Education (DOE) announced that DOE approved $6.1 billion in automatic student loan relief for nearly 317,000 students of for-profit Art Institutes schools, which allegedly made substantial misrepresentations to students. DOE’s approval was based on a review of…

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The CFPB issued a consent order to fintech company Chime Financial, Inc., to resolve allegations that it failed to timely refund customers after their accounts were closed, in violation of the Consumer Financial Protection Act of 2010. According to the consent order, Chime allegedly took longer than 90 days after consumers’ accounts were closed to…

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The CFPB announced that in its examination of mortgage servicers, it found that certain servicers violated truth-in-lending and other consumer protection laws designed to keep homeowners in their homes by charging homeowners hidden “junk” or other improper fees and sending deceptive notices to consumers. The CFPB’s report, resulting from examinations conducted between April 1, 2023…

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New York AG Letitia James entered into an Assurance of Discontinuance with national bank Pathward, N.A., f/k/a MetaBank, to resolve an investigation into Pathward’s handling of customer accounts and settle claims that the bank violated New York’s consumer protection laws and Exempt Income Protection Act (EIPA), which prohibits banks from freezing consumer accounts containing protected…

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