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ARTICLE · 08 JULY 2024

Latest CFPB Supervisory Highlights Focuses On Servicing And Debt Collection Practices

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On July 2, the CFPB released its Summer 2024 Supervisory Highlights, which focused on the servicing and collection of consumer debt. The report shared key findings from recent supervisory examinations...

United StatesConsumer Protection
A.J. Dhaliwal
A.J. Dhaliwal
Mehul Madia
Mehul Madia
Celene Gayle
Celene Gayle
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On July 2, the CFPB released its Summer 2024 Supervisory Highlights, which focused on the servicing and collection of consumer debt. The report shared key findings from recent supervisory examinations of auto and student loan servicing companies and debt collectors. In addition, the report highlighted issues with deposit and prepaid accounts, with a focus on medical credit card practices.

Significant findings include the following:

  • Auto loan servicing. The CFPB found that auto loan servicers engaged in unfair acts or practices by failing to auto-debit consumers' final payments via their autopay system without providing adequate notification to borrowers enrolled in autopay that they needed to make those final payment manually. Servicers are advised to revise policies to ensure final payments are debited via autopay or that consumers are clearly informed about the need for manual payment for their last bill.

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