About a dozen years ago, we and others warned corporate wrongdoers that “there’s a new sheriff in town.” And don’t forget, don’t harm consumer credit reports. Either some big companies haven’t gotten the word or haven’t been paying attention. As the Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra just explained again:
“Toyota’s lending arm illegally withheld refunds, made borrowers run through obstacle courses to cancel unwanted services, and tarnished their credit reports,” said CFPB Director Rohit Chopra. “Given the growing burdens of auto loan payments on Americans, we will continue to pursue large auto lenders that cheat their customers.”
We’re especially excited that the CFPB is calling greater attention to the role of consumer credit reports in its latest announcement. And, that it’s taking important action. No, the Consumer Financial Protection Bureau isn’t afraid of big companies doing wrong. Not at all. When big companies treat consumers unfairly, they’ll pay.
Yahoo’s story; “Toyota Motor Credit made canceling the bundle extremely difficult for the borrower. It routed over 118 thousand borrowers to a hotline where agents were instructed to dissuade (emphasis added) cancellations and often failed to provide refunds. “Toyota Motor Credit is also accused of violating the Fair Credit Reporting Act by misinforming credit reporting agencies and failing to correct the misinformation for more than 27,500 borrowers.”
Meanwhile, the credit unions — who really should know better because they’re actually owned by consumers– have even joined some powerful big business lobbies including The American Bankers Association, the Consumer Data Industry Association (recall that’s the trade association name the credit bureaus themselves now use to obfuscate what they are) and the U.S. Chamber of Commerce to complain about the CFPB latest action to hold the credit bureaus accountable. Read the letter that explains how they really don’t like the CFPB’s (here’s the group letter) plan to rein in the credit bureaus. Don’t read it; it just asks for more delay and to erect more “obstacles” to slow down or stop the rule. But remember, you don’t have to make this stuff up anymore. It writes itself.
The idea of the CFPB needs no defense; but it could use more defenders!