The Federal Financial Forum

From: Subject to Inquiry

By Susan C. Rodriguez

Colleges, universities and anyone offering postsecondary education, take note: The Consumer Financial Protection Bureau (CFPB) continues to target alleged unfair and deceptive practices related to the student loan and financial aid process. A few weeks ago, the CFPB filed suit against Corinthian Colleges in U.S. District Court for the Northern District of Illinois, alleging violations of the Consumer Financial Protection Act of 2010 (CFPA) by:

induc[ing] students to enroll in its programs through false and misleading representations about its graduates’ career opportunities, including representations suggesting Corinthian would provide assistance in helping students find a job, and that students were likely to obtain a permanent job upon graduation.¹

From: Detoit Free Press

Nathan Bomey

The leader of the nation’s car dealers are fighting federal regulations that would restrict dealers ability to charge varying rates for higher risk loans.

“The government is trying to take away a customer’s right to get a discount,” Forrest McConnell, chairman of the National Automobile Dealers Association told the Automotive Press Association today. “The current system saves customers money, period.”

The Consumer Financial Protection Bureau, created in response to abuses by mortgage lenders, payday lenders and others leading up to the 2008 financial crisis, wants to eliminate dealers’ ability to tinker with in-house financing rates.

From: The Hill

By Peter Schroeder

The banking industry is airing concerns about Wal-Mart’s bid to provide checking accounts.

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The Consumer Bankers Association, of which Green Dot is a member, said the company should be “commended” for trying to expand banking services to people who may not have access to traditional resources. However, the group also emphasized that if Wal-Mart wants to get into the banking business, it should be treated like a bank.

From:  The Washington Post/Federal Eye

By Josh Hicks

The Consumer Financial Protection Bureau collects sensitive financial data on tens millions of Americans, and it needs to do more to protect the information, according to federal auditors.

The Government Accountability Office said in a report this week that the bureau gathered information on 75 million credit-card accounts, 10.7 million credit reports, 5.5 million student loans and a range of other financial products over the past two years.

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From: The Wall Street Journal

About 40 Lenders Expected to Be Supervised By CFPB

By Alan Zibel and Christina Rogers

WASHINGTON—The U.S. consumer-finance regulator is preparing to launch in-depth reviews of about 40 large auto lenders to determine whether the firms are following federal consumer-protection laws, according to people familiar with the matter.