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Hello Digit Was Supposed to Automatically Save People Money But They Lied

The Consumer Financial Protection Bureau (CFPB) is taking action against Hello Digit, LLC, a financial technology company that used a faulty algorithm that caused overdrafts and overdraft penalties for customers. Hello Digit was meant to save people money, but instead the company falsely guaranteed no overdrafts with its product, broke its promises to make amends … Read more

US Bank Accused of Exploiting Customer Data and Opening Sham Accounts

US Bank Accused of Exploiting Customer Data and Opening Sham Accounts

Today, the Consumer Financial Protection Bureau (CFPB) took action against U.S. Bank for illegally accessing its customers’ credit reports and opening checking and savings accounts, credit cards, and lines of credit without customers’ permission. U.S. Bank pressured and incentivized its employees to sell multiple products and services to its customers, including imposing sales goals as … Read more

Bank of America Botched Unemployment Payments During Pandemic

Bank of America Botched Unemployment Payments During Pandemic

Today, the Consumer Financial Protection Bureau (CFPB) fined Bank of America $100 million for botching the disbursement of state unemployment benefits at the height of the pandemic. Bank of America automatically and unlawfully froze people’s accounts with a faulty fraud detection program, and then gave them little recourse when there was, in fact, no fraud. … Read more

Does Your Banks Customer Service Suck? Your Opinion Needed.

Does Bank Customer Service Suck? What Do You Think Your Bank Should Do Better?

The Consumer Financial Protection Bureau (CFPB) is seeking public input on how bank customers can assert their rights to better customer service with big banks. A 2010 federal law specifies that consumers have rights to obtain timely responses to requests for information about their accounts from large depository institutions. In today’s Request for Information, the … Read more

If You Thought You Could Trust MoneyGram, Read This

Trustee Loss Mitigation Headquarters Raises Concerns

The Consumer Financial Protection Bureau (CFPB) and New York Attorney General Letitia James today announced they are filing a lawsuit against MoneyGram International, Inc. and MoneyGram Payment Systems, Inc. (MoneyGram)—one of the largest remittance providers in the U.S.—for systemically and repeatedly violating various consumer financial protection laws and leaving families high and dry. The lawsuit … Read more

The Lovable Credit Unions Have Some Hidden Devil

Credit Unions have a very loyal customer base. They are not-for-profit and owned by their members. As a result, they often offer lower interest rates. But there are some important differences between credit unions and banks regarding lending money. The Horrible Cross Collateralization Agreement Credit unions incorporate a “cross-collateralization agreement” in all loans except mortgages. … Read more

Capital One CEO Fined $.6 Million for Not Following the Law

Today, the Federal Trade Commission announced that Richard Fairbank, CEO of Capital One Financial Corp., will pay a $637,950 civil penalty to settle charges that his acquisition of Capital One Financial stock violated the Hart-Scott-Rodino (HSR) Act. Fairbank’s recent multi-million dollar compensation package included over 100,000 Capital One Financial shares in 2018, which increased his … Read more