CFPB report targets credit bureaus, mortgage servicers

The Consumer Financial Protection Bureau issued a new Supervisory Highlights report spotlighting legal violations identified during its supervisory examinations in the first half of 2022. 

Details: The report says: 

  • Consumer reporting companies and data furnishers continued to violate the Fair Credit Reporting Act by failing to promptly address and update incorrect information on credit reports. 
  • Mortgage servicers charged impermissible “junk fees” on homeowners making mortgage payments. 
  • Auto loan servicers engaged in unfair and deceptive acts or practices related to add-on product charges, loan modifications, and other tactics. 
  • Financial institutions’ policies and procedures may have resulted in consumers losing their COVID-19 pandemic relief benefits due to garnishments or setoff practices.