Trouble for TD Bank
Plus, a student loan debt collector shut down
Another day, another big bank being bad.
This time, it’s TD Bank.
And the trouble?
Nothing, really.
Just facilitating money laundering in order to pad profits.
Because TD put profits ahead of protecting customers, they’ve now been fined $450 million.
Oh, and they’ve had their asset growth capped.
“TD Bank’s persistent prioritization of growth over controls allowed its employees to break the law and facilitate the laundering of hundreds of millions of dollars. The bank’s blatant risk management failures attracted illicit actors and are egregious and unacceptable,” said Acting Comptroller of the Currency Michael J. Hsu. “The OCC’s coordinated and comprehensive action, including the imposition of an asset cap, will ensure that the bank focuses on building proper controls commensurate with its risk profile.”
Ejudicate Shut Down by CFPB
A debt collector focusing on student loans now finds itself banned by the CFPB.
Ejudicate purported to be an independent arbitrator available to help student borrowers resolve delinquent debt.
The reality: The company was a front for a previously banned debt collector.
“Ejudicate ran bogus arbitration proceedings, deceived borrowers, and hid its financial conflicts of interest,” said CFPB Director Rohit Chopra. “Arbitration outfits cannot rig the process against consumers to enrich their corporate clients.”
When Car Repossession Breaks the Law
A consumer financing the purchase of the car can expect that if payments are not made, they may lose the car - even through repossession.
But, what if you are advised of late payment status and pending repo and then make a payment?
An investigation by the CFPB found that even then, your car might be repossessed - AND sold.
That’s illegal.
“Borrowing to buy a vehicle is one of the largest sources of household debt for American families, and many deal with unnecessary costs and challenges paying for their car,” said CFPB Director Rohit Chopra. “The CFPB will take action against auto-finance companies that charge fees for nonexistent services, or repossess cars after borrowers make payments.”