Complaint Bulletin: An analysis of consumer complaints related to crypto-assets

"Crypto-assets are increasingly offered and marketed to consumers, including being incorporated into other products. Even large financial firms have begun offering and marketing crypto-asset custodial services to certain customers. As these offerings have increased, so too have consumers’ complaints to the Consumer Financial Protection Bureau (CFPB) related to crypto-assets.

This report analyzes complaints related to crypto-assets submitted to the CFPB. This report finds that fraud, theft, hacks, and scams are a significant problem in crypto-asset markets, as are transaction problems, including frozen accounts and inability to access assets.

FULL REPORT

View bulletin.."
Crypto-Assets 

D.C. Circuit Upholds as Constitutional the Structure of the CFPB – Part I

"The entire U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit) issued a potentially important decision on January 31, upholding the structural design of the Consumer Financial Protection Bureau (CFPB). The en banc court held by a vote of 7-3 that the agency’s various statutory elements of independence, including a provision that limited the President’s authority to remove the CFPB Director, do not infringe upon the President’s powers under Article II of the Constitution. The decision, PHH Corp. v. CFPB, comes after a previous (but since vacated) three-judge panel decision held that providing removal protections to the sole director of the CFPB violated the Constitution. Although the en banc court rejected the earlier panel’s constitutional reasoning, the D.C. Circuit nonetheless reinstated the previous decision’s statutory holding, which had invalidated the CFPB’s interpretation of the Real Estate Settlement Procedures Act of 1974 (RESPA). The D.C. Circuit’s latest decision therefore effectively rejected the CFPB enforcement action that gave rise to the case, but reaffirmed, and may expand, what is likely Congress’s chief tool for ensuring agency independence: the use of “for-cause” removal protections. This two-part Sidebar series begins with a brief summary of the Supreme Court’s views of the President’s removal power before addressing the PHH litigation and the en banc majority opinion. Part II of this series will address some of the separate opinions issued in the case and then highlight certain implications for Congress..."
CFPB (Consumer Financial Protection Burea)

UPDATE: Who’s the Boss at the CFPB?

"Update: On January 10, 2018, the U.S. District Court for the District of Columbia denied Leandra English’s request for a preliminary injunction, ruling that the Federal Vacancies Reform Act (Vacancies Act) authorized the President to appoint Mick Mulvaney to serve as the Acting Director of the CFPB. Since the Sidebar below was originally published, English filed an amended complaint and moved for a preliminary injunction on substantially similar grounds to those described below. In rejecting her motion, the district court held that because the provision of the Dodd-Frank Act that authorizes the Deputy Director to serve as the Acting Director when the Director is absent or unavailable did not expressly displace the Vacancies Act, the Vacancies Act remained available and authorized the President to fill the position. English had also argued that even if the Vacancies Act generally would allow the President to appoint an Acting Director, because Mulvaney is also the head of the Office of Management and Budget, an agency housed directly under the White House, he may not head an independent agency like the CFPB. But the judge rejected this argument, noting that no such restriction could be found in the text of the Dodd-Frank Act. The district court ultimately denied the request for a preliminary injunction because English had failed to show either a likelihood of success on the merits or that she would suffer irreparable injury absent relief. It is possible that English might appeal this order, and the U.S. Court of Appeals for the District of Columbia Circuit could weigh in on this issue..."
CFPB

CFPB Issues Guide and Best Practices to Help Communities Create Protection Partnerships for Seniors

"Today the Consumer Financial Protection Bureau (CFPB) released a report that found that hundreds of counties around the country have developed coordinated community-based efforts to prevent, detect, and respond to elder financial exploitation. The report also found that a strong collaboration among community stakeholders – like financial institutions, adult protective services, and law enforcement – can be very effective in protecting their older residents from financial exploitation. To help other communities across the country create their own protection partnerships to fight elder financial abuse, today the CFPB also released a resource guide and best practices..."
Consumer protection for seniors

Take control of your auto loan

"Whether you’re a first time borrower or a pro, getting an auto loan can be complicated. Learn how to prepare so you can save money, reduce stress, and get the auto loan that’s right for you.

 *Featured tool

Auto loan worksheet

Experts know to focus on total cost, not just the monthly payment. Our shopping sheet helps you compare offers, see the total cost, and negotiate the best deal.

• Download worksheet ..." 

Auto loans

Measuring financial well-being: A guide to using the CFPB Financial Well-Being Scale

"Following a rigorous research effort to develop a consumer-driven definition of financial well-being, the CFPB developed and tested a set of questions–a “scale”–to measure financial well-being. The scale is designed to allow practitioners and researchers to accurately and consistently quantify, and therefore observe, something that is not directly observable–the extent to which someone’s financial situation and the financial capability that they have developed provide them with security and freedom of choice. This guide describes the research behind the CFPB Financial Well-Being Scale and provides detailed steps for using it, including how to score individuals’ responses and compare their scores.

Take a look at the user guide...:
Financial well-being

Your home loan toolkit: A step-by-step guide

Find information on home loans in this recently published toolkit from the U.S. Consumer Financial Protection  Bureau.
Home loans

Know Before You Owe: Making the mortgage process easier for you

"Since opening our doors over four years ago we’ve heard from homebuyers that the process of buying a home is overwhelming and confusing. We’ve heard that closing is often rushed, not allowing enough time to review before signing on the dotted line. For consumers who apply for most mortgages on or after October 3, 2015, the stress of shopping for a mortgage will be reduced, as our new mortgage disclosure rule takes effect. The new rule and disclosures ease the process of taking out a mortgage, helping you save money, and ensuring you know before you owe.

Here’s what will change:

• Four overlapping disclosure forms will be streamlined into two forms, the Loan Estimate and the Closing Disclosure.
• You’ll have more time to review your closing documents. Currently, lenders must give you your HUD-1 Settlement Statement disclosure 24 hours in advance, if you request it; after October 3, you’ll receive your Closing Disclosure three business days before you sign the forms and accept the terms of your mortgage, no request needed.

Here’s how these changes will improve the mortgage process:

• The new forms will make it easier to understand complicated mortgage terms.
• The Loan Estimate makes it easier to shop around and compare loan offers from multiple lenders. Consider applying for loans from at least three lenders before choosing a mortgage so you can find the best deal for you.
• The three days required between getting your Closing Disclosure and signing on the dotted line allow you to make sure there aren’t major changes from the deal you were offered on your Loan Estimate. It also gives you time to ask your lender all the questions you might have about the terms of your mortgage and consult with a lawyer or housing counselor..."
  Mortgages

Three things to do before closing: What we learned from studying eClosing

"We’ve heard from many consumers about the overwhelming process of closing on a mortgage, which can be confusing and difficult. Closing is the part of the mortgage process where you accept the terms of your loan, the last step before you owe, and usually before you owe more than you ever have in your life.

As part of our broader efforts to improve the overall mortgage experience, we’ve been exploring how technology can be used to address some of those pain points in the closing process.

Today we’re releasing the results of a pilot program where we explored tools and process changes that can help consumers better navigate closing by accessing and signing their closing documents in different ways. Specifically, we examined what would happen if there was more technology involved in the mortgage closing process, with documents being delivered electronically earlier together with online tools and resources. The electronic delivery and signing of closing documents using electronic signatures is sometimes referred to as eClosing.

We wanted to study the idea that by using technology as a tool, consumers may be better informed and prepared – putting them in the driver’s seat at closing..."
Closing

Today we begin to share the story of your complaints

"Every day, we hear directly from the American public about your experiences in the consumer financial marketplace. We hear from consumers in their own words about the pain of having a home in foreclosure, the frustration of trying to correct an inaccurate credit report, or their helplessness in dealing with an abusive debt collector.

Today, for the first time, we are making consumers’ complaint narratives – the heart and soul of the complaints we receive – public. These narratives are important because they tell the story of what happened in the consumers’ own words. Making these consumer narratives public, amplifies the voice of the consumer..."
Consumer finance complaints

Data Point: Credit Invisibles

"Consumers with limited credit histories reflected in the credit records maintained by the three nationwide credit reporting agencies (NCRAs) face significant challenges in accessing most credit markets.1 NCRA records are often used by lenders when making credit decisions. In particular, lenders often use credit scores, such as one of the FICO or VantageScore scores, that are derived entirely from NCRA records when deciding whether to approve a loan application or in setting a loan’s interest rate. If a consumer does not have a credit record with one of the NCRAs or if the record contains insufficient information to assess her creditworthiness, lenders are much less likely to extend credit. As a result, consumers with limited credit histories can face substantially reduced access to credit.."
credit, consumer finance

Your money, your goals

"ARE YOU HAVING THE MONEY CONVERSATION?

Your Money, Your Goals is a toolkit to help front line staff and volunteers as they work with consumers to…

• Make spending decisions that can help them reach their goals
• Order and fix credit reports
• Avoid tricks and traps as they choose financial products
• Make decisions about repaying debts and taking on new debt
• Keep track of their income and bills
• Decide if they need a checking account and understand what they need to open one..."
  Your money, your goals

Snapshot of reverse mortgage complaints December 2011 – 2014

"Reverse mortgages are a special type of loan that allows homeowners, 62 and older, to borrow against the accrued equity in their homes. Reverse mortgages can help some older homeowners meet financial needs, but they can jeopardize retirement security if not used carefully.

We’ve heard many complaints from consumers who have experienced problems with reverse mortgages. Today we are releasing a report on those complaints.

This Snapshot provides an overview of consumer complaints submitted to the CFPB involving reverse mortgages from December 2011 through December 2014. The most common reverse mortgage complaint is about difficulty with changing the loan terms, and problems communicating with loan servicers..."

Reverse mortgage

Consumer credit reports: A study of medical and non-medical collections

"Roughly half of all collections tradelines that appear on credit reports are reported by debt
collectors seeking to collect on medical bills claimed to be owed to hospitals and other medical
providers. These medical debt collections tradelines affect the credit reports of nearly one-fifth
of all consumers in the credit reporting system.
This paper describes characteristics of the medical and non-medical collections tradelines on
consumers’ credit reports and the processes by which they appear and disappear. It draws on
analysis of data contained in the Consumer Financial Protection Bureau’s (CFPB) Consumer .."
Consumer credit

Updated reverse mortgage guide: Two things you should know

"More and more homeowners are considering tapping their home equity as they approach retirement age. Getting a reverse mortgage is one way that some older homeowners can do that. Reverse mortgages are a special type of home equity loan sold to homeowners aged 62 years and older, which are repaid when the borrowers sell the home, move out, or die. It’s a complicated type of loan that works best for homeowners who carefully consider all of their options..."
Reverse mortgages

Financial Wellness at Work

" In this report, we specifically describe financial wellness efforts at five companies: Nebraska Furniture Mart, health care provider QLI, Staples, Goodwill of Central Texas, and Pacific Research. Each of these companies is innovating in financial wellness efforts and finding value in reducing and addressing the negative effects of financial stress on employees. They all took the time to share with us their best practices, and we appreciate their input and believe other employers could adapt and learn from their ongoing initiative.."
Financial Wellness

Plan and protect your finances with a my Social Security account

"Whether you’re one of the millions of workers who pay Social Security taxes or the 50 million retired Americans and dependents who receive benefits, it’s good to keep track of your Social Security benefits. National My Social Security Week takes place August 17 to 23 — the perfect time to take a step toward creating an online account with the Social Security Administration at www.socialsecurity.gov/myaccount. This account will give you secure and convenient online access to your personal Social Security information, including your earnings records and estimated benefits. If you already receive Social Security benefits, you can change your address and phone number, get a benefit verification letter and start or change direct deposit information..."
mySocial security account

Your Money, Your Goals: Financial empowerment tools for social services

"Many people feel overwhelmed by their financial situations, and they may not know where to go for help. For many low-income Americans, frontline staff of nonprofit and public social services programs are in a unique position to provide that help.
Their clients already know and trust them, and in many cases, they’re already sharing financial information with them. Social workers and case managers know, however, that the financial stresses clients face may interfere with their progress toward other goals, like finding and keeping secure housing, staying in school, or even landing a job. As they make progress toward those goals, financial missteps can often erase their hard-fought gains.
That’s why social services programs across the country are taking steps to integrate financial empowerment into the work they do each day with their clients. To support their efforts, we’ve developed and field-tested a toolkit for financial services programs called Your Money, Your Goals..."

Consumer finance

2014 Financial Literacy Annual Report

Find the 2014 Financial Literacy Annual  from the U.S. Consumer Financial Protection Bureau.
Financial literacy

The Consumer Financial Protection Bureau (CFPB): A Legal Analysis

"This report provides an overview of the regulatory structure of consumer finance under existing

federal law before the Dodd-Frank Act went into effect and examines arguments for modifying

the regime in order to more effectively regulate consumer financial markets. It then analyzes how

the CFP Act changes that legal structure, with a focus on the Bureau’s organization; the entities

and activities that fall (and do not fall) under the Bureau’s supervisory, enforcement, and

rulemaking authorities; the Bureau’s general and specific rulemaking powers and procedures; and

the Bureau’s funding..."

Consumer Financial Protection Bureau