CFPB ends multiple lender consent orders, opens few new cases

"The shift comes alongside broader efforts to scale back the CFPB's footprint: shrinking its workforce by 1,400 employees (out of 1,700 under the Biden administration), reducing supervisory exams by roughly 50%, and redirecting its focus. Supervisory activity toward nonbank financial providers dropped to 30%, compared with 60% in the prior administration. Planet, for example, was accused in 2017 of accepting improper referral fees and misusing consumer credit information in violation of RESPA and the Fair Credit Reporting Act."

"The consent order has now been formally terminated, many years after we completed all required actions, the spokesperson added. Washington Federal Bank was cited in 2020 for alledgely misreporting mortgage-loan data under the Home Mortgage Disclosure Act (HMDA) for 20162017. The bank paid a $200,000 penalty and adopted a compliance plan that was originally set to run through October 2030, but those conditions have now been lifted."

"That same day, the CFPB also ended a consent order against Apple, which had been fined $25 million for claims of failing to forward certain transaction disputes to Goldman Sachs under the Apple Card program. Separately, U.S. Bank was released from an order tied to allegations that it opened deposit accounts, credit cards and lines of credit without customers' knowledge or consent a case that carried a $37.5 million penalty."

The CFPB reduced its workforce by 1,400 employees from 1,700 under the prior administration, cut supervisory exams by roughly 50%, and redirected its focus. Supervisory activity toward nonbank financial providers fell to 30% from 60% previously. Multiple consent orders and oversight conditions have been terminated or lifted. Planet’s 2017 consent order for alleged RESPA and Fair Credit Reporting Act violations was terminated after the company paid a $265,000 penalty and adjusted practices. Washington Federal Bank’s HMDA-related order and compliance plan were lifted after a $200,000 penalty. Consent orders against Apple ($25 million) and U.S. Bank ($37.5 million case) were also ended.

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