USASF Servicing is being charged with illegal practices that harmed consumers with auto loans including disabling vehicles, improperly repossessing vehicles, double-billing for insurance premiums, and failing to return millions in refunds, according to a lawsuit. The CFPB is seeking to return money to consumers, impose penalties, and stop future violations.
American companies are using unfair and deceptive practices as they sell many consumer financial products, the CFPB said in a report. For example, auto lenders have originated loan balances above the real value of the car being purchased and engaged in illegal collection practices while servicing these loans.
To help consumers, the Biden administration is cracking down on junk fees, price gouging on food, and mergers. President Biden announced the actions Wednesday the day before the fifth meeting of White House Competition Council, appointed in 2021. The council is made up of 10 cabinet members and the heads of seven agencies.
Another big bank is being exposed for corporate fraud. Bank of America will pay more than $100 million to customers for double-dipping on fees imposed on customers with insufficient account funds, withholding reward bonuses promised to credit card customers, and misusing personal information to open accounts without customers’ knowledge.
Another large financial institution has been caught gouging customers. Raymond James agreed to settle allegations Tuesday with six state securities regulators for charging unreasonable commissions on trades that harmed investors. The broker-dealer will pay at least $8.2 million in refunds to clients, and $4.2 million in penalties and costs.
Winning the Publishers Clearing House sweepstakes seems like a dream that you wish could happen to you when you see the TV ad. However, PCH has been deceiving people for decades. It used language and designs on its website and in its email marketing that tricked consumers into believing they had to buy things on the PCH website to enter a sweepstakes.
Most people rely heavily on online shopping. However, with lots of screens before you get to check-out, you could sign up for a service without knowing it. Then, it can be difficult to cancel. For years, Amazon.com enrolled consumers into its Prime program without their consent while making it hard for them to cancel, the FTC charged.
More than two thirds of online shopping scams begin on the social media platforms Instagram and Facebook, according to an analysis by the Lloyds Banking Group. Fraudsters are preying on shoppers in search of a deal. They’re creating fake business pages, social media ads, and online stores.
It’s not surprising what last year’s top consumer complaint was. I’ve seen it many times as No. 1 on annual consumer complaint lists. It’s auto sales and repair. “Consumers rely on cars to get to work, school, doctors’ appointments and more,” said Erin Witte, director of consumer protection for the Consumer Federation of America.
