Friday Financial Fraud Roundup
Something new from Advocate Andy
This week, I’m introducing a new feature.
It’s the Friday Financial Fraud roundup.
No, it’s not JUST financial fraud committed on Fridays.
It is a summary of recent news of fraud in the financial marketplace.
It will serve as a warning to consumers - and it may also raise awareness.
Perhaps a company you’ve done business with is now the subject of a lawsuit or a court action related to defrauding or deceiving customers. Maybe you’ve been defrauded and there’s now a settlement (and possible compensation for you).
This weekly roundup will offer some insight.
It’s also a chance for you to share your stories - please feel free to discuss your experiences in the comments - or reach out to me directly to make me aware of fraud and deception in financial markets.
Here we go for this week:
OneMain Financial
A Consumer Financial Protection Bureau (CFPB) investigation found that the company repeatedly deceived consumers into believing that certain add-on products were required for loan approval. When some customers later asked for refunds - which OneMain claimed were guaranteed - the company then kept a portion of the funds. The CFPB says as many as 25,000 borrowers were defrauded as a result of these practices.
“OneMain pressured its employees to load up its loans with extra charges through false promises of easy cancellation with full refunds,” said CFPB Director Rohit Chopra. “We are ordering OneMain to refund borrowers it cheated and to clean up its business practices.”
Citizens Bank
Citizens Bank, large, regional bank with headquarters in Rhode Island, has been fined $9 million by the Consumer Financial Protection Bureau (CFPB) for its improper handling of customer credit card disputes. The misconduct by Citizens includes improperly dismissing fraud complaints and failing to provide refunds to customers even when it was established those refunds were owed.
“Federal law provides important rights to credit cardholders when disputing transactions and resolving billing errors,” said CFPB Director Rohit Chopra. “As outstanding credit card debt approaches $1 trillion, the CFPB will be closely watching the conduct of the credit card industry.”
If you have a complaint about fraud in consumer finance, contact the Consumer Financial Protection Bureau (CFPB).
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