Monday, January 16

Comcast Fined $2.3 Million For Improperly Charging Customers

The job of the most honest seller is to sell you, not to give you reasons to buy from a competitor. That over-riding reality drives the free-enterprise system, and places a responsibility on you.

FoolProof's Hall of Shame is here to remind you why a healthy dose of skepticism should rule your decisions before dealing with anyone who wants to touch your money or your general welfare.

October 11, 2016

Improper Charges

Source: www.npr.org

Cable giant Comcast Corp. has been ordered by federal regulators to pay $2.3 million for wrongfully charging customers for gear and services they never requested. Officials say it is the largest civil penalty imposed on a cable operator.

"It is basic that a cable bill should include charges only for services and equipment ordered by the customer—nothing more and nothing less. We expect all cable and phone companies to take responsibility for the accuracy of their bills and to ensure their customers have authorized any charges," said LeBlanc, Chief of the Enforcement Bureau at the FCC.

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CFPB Orders LendUp to Pay $3.63 Million for Failing to Deliver Promised Benefits

The job of the most honest seller is to sell you, not to give you reasons to buy from a competitor. That over-riding reality drives the free-enterprise system, and places a responsibility on you.

FoolProof's Hall of Shame is here to remind you why a healthy dose of skepticism should rule your decisions before dealing with anyone who wants to touch your money or your general welfare.

September 27, 2016

Loans

Online Lender Did Not Help Consumers Build Credit or Access Cheaper Loans, As It Claimed

Source: www.consumerfinance.gov

Today the Consumer Financial Protection Bureau (CFPB) took action against online lender Flurish, Inc., doing business as LendUp, for failing to deliver the promised benefits of its products. The CFPB found that the company did not give consumers the opportunity to build credit and provide access to cheaper loans, as it claimed to consumers it would. The Bureau has ordered the company to provide more than 50,000 consumers with approximately $1.83 million in refunds. The company will also pay a civil penalty of $1.8 million.

The CFPB found that the company:

  • Misled consumers about graduating to lower-priced loans
  • Hid the true cost of credit
  • Reversed pricing without consumer knowledge
  • Understated the annual percentage rate
  • Failed to report credit information

LendUp is required to:

  • Provide approximately $1.83 million in redress to victims
  • End deceptive loan practices
  • End unlawful advertisements:
  • Ensure accuracy of pricing
  • Pay a $1.8 million civil penalty

CFPB Fines Titlemax Parent Company $9 Million for Luring Consumers Into More Costly Loans

The job of the most honest seller is to sell you, not to give you reasons to buy from a competitor. That over-riding reality drives the free-enterprise system, and places a responsibility on you.

FoolProof's Hall of Shame is here to remind you why a healthy dose of skepticism should rule your decisions before dealing with anyone who wants to touch your money or your general welfare.

September 26, 2016

Loans

Lender Also Illegally Exposed Borrowers' Debt Information to Employers, Friends, and Family

Source: www.consumerfinance.gov

The Consumer Financial Protection Bureau (CFPB) today took action against TitleMax parent company TMX Finance LLC for luring consumers into costly loan renewals by presenting them with misleading information about the deals' terms and costs. The lender also used unfair debt collection tactics that illegally exposed information about debts to borrowers' employers, friends, and family. The Bureau ordered TMX Finance to stop its unlawful practices and pay a $9 million penalty.

"TMX Finance lured consumers into more expensive loans with information that hid the true costs of the deal," said CFPB Director Richard Cordray. "They then followed up with intrusive visits to homes and workplaces that put consumers' personal information at risk. Today we are making it clear that these actions were unacceptable and illegal."

Specifically, the Bureau found that TMX Finance:

  • Presented consumers with misleading information about loan terms
  • Exposed information about consumers' debts to co-workers, neighbors, and family members

TMX Finance is required to:

  • Stop abusive loan-repayment policies
  • Stop intrusive visits to consumers' homes or workplaces
  • Pay a $9 million penalty

Hall of Shame: Santander Bank to Pay $10 Million Fine for Illegal Overdraft Practices

The job of the most honest seller is to sell you, not to give you reasons to buy from a competitor. That over-riding reality drives the free-enterprise system, and places a responsibility on you.

FoolProof's Hall of Shame is here to remind you why a healthy dose of skepticism should rule your decisions before dealing with anyone who wants to touch your money or your general welfare.

July 14, 2016

Banking

Bank Deceptively Marketed Its Overdraft Service to Consumers, Violated "Opt-in" Rule

Source: www.consumerfinance.gov

The Consumer Financial Protection Bureau (CFPB) has ordered Santander Bank, N.A. to pay a $10 million fine for illegal overdraft service practices. Santander's telemarketing vendor deceptively marketed the overdraft service and signed certain bank customers up for the service without their consent. In addition to paying the civil money penalty to the CFPB, Santander Bank must go back and give consumers the opportunity to provide their affirmative consent to overdraft service, not use a vendor to telemarket its overdraft service, and it must increase oversight of vendors it uses to telemarket consumer financial products or services.

"Santander tricked consumers into signing up for an overdraft service they didn't want and charged them fees," said CFPB Director Richard Cordray. "Santander's telemarketer used deceptive sales pitches to mislead customers into enrolling in overdraft service. We will put a stop to any such unlawful practices that harm consumers."

The Bureau found Santander Bank's illegal and improper practices included:

  • Signing consumers up for overdraft service without their consent
  • Deceiving consumers that overdraft service was free
  • Deceiving consumers about the fees they would face if they did not opt in
  • Falsely claiming the call was not a sales pitch
  • Failing to stop its telemarketer's deceptive tactics

The CFPB's order requires that Santander Bank:

  • Validate all opt-ins associated with the telemarketer
  • Not use a vendor to telemarket overdraft service
  • Increase oversight of all third-party telemarketers
  • Pay a $10 million penalty

Hall of Shame: Citigroup Provided Incomplete Blue Sheet Data for 15 Years

The job of the most honest seller is to sell you, not to give you reasons to buy from a competitor. That over-riding reality drives the free-enterprise system, and places a responsibility on you.

FoolProof's Hall of Shame is here to remind you why a healthy dose of skepticism should rule your decisions before dealing with anyone who wants to touch your money or your general welfare.

July 12, 2016

Trading

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Hall of Shame: Wells Fargo Ordered to Pay $185 Million Fine over Unauthorized Accounts

The job of the most honest seller is to sell you, not to give you reasons to buy from a competitor. That over-riding reality drives the free-enterprise system, and places a responsibility on you.

FoolProof's Hall of Shame is here to remind you why a healthy dose of skepticism should rule your decisions before dealing with anyone who wants to touch your money or your general welfare.

September 8, 2016

Banking

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Hall of Shame: CFPB Orders First National Bank of Omaha to Pay $32.25 Million for Illegal Credit Card Practices

The job of the most honest seller is to sell you, not to give you reasons to buy from a competitor. That over-riding reality drives the free-enterprise system, and places a responsibility on you.

FoolProof's Hall of Shame is here to remind you why a healthy dose of skepticism should rule your decisions before dealing with anyone who wants to touch your money or your general welfare.

August 25, 2016

Credit Cards

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Hall of Shame: CFPB Finds Half of Online Payday Borrowers Rack Up an Average of $185 in Bank Penalties

The job of the most honest seller is to sell you, not to give you reasons to buy from a competitor. That over-riding reality drives the free-enterprise system, and places a responsibility on you.

FoolProof's Hall of Shame is here to remind you why a healthy dose of skepticism should rule your decisions before dealing with anyone who wants to touch your money or your general welfare.

April 20, 2016

Payday Loans

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Hall of Shame: CFPB Finds One-in-Five Auto Title Loan Borrowers Have Vehicle Seized for Failing to Repay Debt

The job of the most honest seller is to sell you, not to give you reasons to buy from a competitor. That over-riding reality drives the free-enterprise system, and places a responsibility on you.

FoolProof's Hall of Shame is here to remind you why a healthy dose of skepticism should rule your decisions before dealing with anyone who wants to touch your money or your general welfare.

Majority of Auto Title Loan Business Comes from Borrowers Stuck in Debt for Most of the Year

May 18, 2016

Auto Loans

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Hall of Shame: FCC Settles Verion "Supercookie" Probe, Requires Consumer Opt-In For Third Parties

The job of the most honest seller is to sell you, not to give you reasons to buy from a competitor. That over-riding reality drives the free-enterprise system, and places a responsibility on you.

FoolProof's Hall of Shame is here to remind you why a healthy dose of skepticism should rule your decisions before dealing with anyone who wants to touch your money or your general welfare.

Verizon Wireless to Obtain Affirmative Consent from Consumers Before Sending Unique Identifier Headers to Third Parties

March 7, 2016

Privacy

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