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PRESS RELEASE: CONSUMER FINANCIAL PROTECTION BUREAU REPORT FINDS THAT 9 IN 10 OF THE HIGHEST-RISK STUDENT LOAN BORROWERS WERE NOT ENROLLED IN AFFORDABLE REPAYMENT PLANS

consumer financial protection bureau

FOR IMMEDIATE RELEASE:
May 16, 2017

CONTACT:
Office of Communications
Tel: (202) 435-7170

CONSUMER FINANCIAL PROTECTION BUREAU REPORT FINDS THAT 9 IN 10 OF THE HIGHEST-RISK STUDENT LOAN BORROWERS WERE NOT ENROLLED IN AFFORDABLE REPAYMENT PLANS
Nearly Half of the Highest-Risk Borrowers Not Enrolled in an Affordable Repayment Plan Redefault

Washington, D.C. – Today, the Consumer Financial Protection Bureau released an analysis of a student loan industry data sample showing that 9 in 10 of the highest-risk borrowers were not enrolled in federal affordable repayment plans. The analysis looks at hundreds of thousands of the highest-risk borrowers who are exiting default and may be eligible for federal programs that allow them to pay based on how much money they make. Student loan companies are responsible for informing borrowers about affordable repayment options that can help them stay on track. The Bureau also found that nearly half of the highest-risk borrowers not enrolled in an affordable repayment plan redefault, compared to less than 10 percent of those who are enrolled.

“Too many struggling borrowers fall through the cracks in a broken, outdated student loan system,” said CFPB Director Richard Cordray. “These people did everything that was asked of them to get back on their feet, only to end up deeper in debt. We will continue to work to make sure this industry provides borrowers with the kind of service they deserve.”

“For far too many student loan borrowers, the dream of a fresh start turns into a nightmare of default and deeper debt,” said CFPB Student Loan Ombudsman Seth Frotman. “When student loan companies know that nearly half of their highest-risk customers will quickly fail, it’s time to fix the broken system that makes this possible.”

The CFPB’s new report is available at: http://files.consumerfinance.gov/f/documents/201705_cfpb_Update-from-Student-Loan-Ombudsman-on-Redefaults.pdf

The student loan market has grown rapidly in the last decade with about 44 million Americans now owing money. The combined total for outstanding federal and private student loan debt now exceeds $1.4 trillion, with the vast majority from federal loans. The Department of Education estimates that more than 8 million federal student loan borrowers have gone at least 12 months without making a required monthly payment and have fallen into default. Nearly 1.2 million borrowers defaulted in the past year. These borrowers face negative consequences such as wage garnishment, loss of federal benefits, and negative credit history.

Federal student loan borrowers have access to programs that are intended to provide a fresh start through two primary options. Under the first option, borrowers can work with a debt collector to “rehabilitate” their defaulted debt — a process where borrowers have to make nine on-time payments over 10 months to exit default. Generally, the federal government pays debt collectors to take these payments and then transfers  borrowers back to a servicer or to the government for assignment to a servicer. Servicers then can help these borrowers enroll in an affordable repayment plan. Under the second option, borrowers can refinance the defaulted debt by consolidating it into a new federal Direct Consolidation loan, which immediately moves them into an affordable repayment plan. Most debt collectors use rehabilitation to get borrowers out of default, which constitutes more than 70 percent of all federal loan collections.

Last year, the Bureau sent student loan servicers a voluntary information request seeking new information on how previously defaulted borrowers perform over time. Servicers collectively handling accounts for more than 20 million student loan borrowers provided information in response to the Bureau’s request. This included data about borrower performance for more than 600,000 of the highest-risk student loan borrowers. The highest-risk borrowers are those who previously defaulted on a federal student loan, exited default, and were then transferred to a student loan servicer. Today’s report provides the public with a preliminary update on this information, including data related to the performance of certain previously defaulted student loan borrowers. Key results for borrowers in the Bureau’s sample include:

  • 9 out of 10 of the highest-risk borrowers were not enrolled in an affordable repayment plan after rehabilitation: The majority of highest-risk borrowers are put into the rehabilitation program, which means that they must pay a debt collector for nine out of ten months in order to get out of default. Once out of default, these borrowers must work with a student loan servicer to secure an affordable repayment plan. The range of widely available income-driven repayment plans that allow borrowers to pay based on income should ensure that payments remain affordable over time. However, new data shows that fewer than 2 percent of borrowers accessed this protection immediately after paying a debt collector to get out of default.  Nearly a year later, 9 in 10 of these borrowers still had not secured an affordable repayment plan from their student loan servicer.
  • Nearly half of the highest-risk borrowers redefault if not enrolled in an affordable repayment plan: Growing evidence shows income-driven repayments are a key step to avoid default for many of the highest-risk student loan borrowers. Data provided in the report shows that nearly half of all borrowers who were not enrolled in an income-driven plan ended up back in default within three years. In contrast, less than 1 in 10 borrowers in income-driven repayment plans ended up back in default over this period.
  • 95 percent of the highest-risk borrowers do not redefault within the first year when they consolidate into an affordable repayment plan: A minority of the highest-risk borrowers consolidate their defaulted loans to get out of default, a process that will automatically establish payment plans based on their income. Nearly 95 percent of borrowers who recently consolidated their defaulted loans remained on track 12 months later. After two years, these borrowers defaulted at a rate one-third lower than the rate for those who rehabilitated their loans but did not consolidate.

This data offers new evidence that borrowers, taxpayers, and student loan companies would benefit from a clearer, more streamlined process to help previously defaulted borrowers succeed over the long term, and to ensure borrowers avoid default in the first place. Last year, the Bureau warned that hundreds of thousands of struggling student loan borrowers may end up back in default over the next two years, racking up at least $125 million in unnecessary interest charges along the way.

The Bureau has called for an overhaul of these programs to place greater emphasis on the long-term success of economically vulnerable student loan borrowers. This information will help the Bureau assess how current practices intended to assist the highest-risk borrowers may differ among companies. The Bureau previously highlighted how inconsistent practices across servicers can cause significant problems for borrowers, calling for industrywide servicing standards in this market.

The CFPB provides a Repay Student Debt tool, which helps borrowers get unbiased tips on how to navigate student loan repayment, along with other sample letters they can send to their student loan servicers. More information is available at: consumerfinance.gov/students.

PRESS RELEASE: Prepared Remarks of Richard Cordray Director, Consumer Financial Protection Bureau Small Business Lending Field Hearing

consumer financial protection bureau

FOR IMMEDIATE RELEASE:
May 10, 2017

CONTACT:
Office of Communications
Tel: (202) 435-7170

Prepared Remarks of Richard Cordray
Director, Consumer Financial Protection Bureau

Small Business Lending Field Hearing 

Los Angeles, Calif.
May 10, 2017

Thank you all for coming. It is good to be here again in Los Angeles. Today, the Consumer Financial Protection Bureau is announcing an inquiry into ways to collect and publish information about the financing and credit needs of small businesses, especially those owned by women and minorities. We are well aware of the key role they play in our lives. Small businesses help drive America’s economic engine by creating jobs and nurturing local communities. It is estimated that they have created two out of every three jobs since 1993 and now provide work for almost half of all employees in the private sector. Yet we perceive large gaps in the public’s understanding of how well the financing and credit needs of these entrepreneurs are being served.

As you probably know, Congress provided the Consumer Bureau with certain responsibilities in the area of small business lending. And there is a strong logic behind this. When I served as the Ohio Attorney General, we recognized the need to protect small businesses and nonprofit organizations by accepting and handling complaints on their behalf, just as we did for individual consumers – an approach that proved to be very productive. In addition, the line between consumer finance and small business finance is quite blurred. More than 22 million Americans are small business owners and have no employees. And, according to data from the Federal Reserve, almost two-thirds of them rely on their business as their primary source of income.

Congress specifically has charged the Consumer Bureau with the responsibility to administer and enforce various laws, including the Equal Credit Opportunity Act. Unlike other consumer financial laws, the ECOA governs not only personal lending, but some commercial lending as well. In fact, we have now conducted a number of ECOA supervisory examinations of small business lending programs. Through that work, we are learning about the challenges financial institutions face in identifying areas where fair lending risk may exist, and we are assisting them in developing the proper tools to manage that risk.

In the Dodd-Frank Wall Street Reform and Consumer Protection Act, Congress took a further step to learn more about how to encourage and promote small businesses. To help determine how well the market is functioning and to facilitate enforcement of the fair lending laws, Congress directed the Consumer Bureau to develop regulations for financial institutions that lend to small businesses to collect certain information and report it to the Bureau. The Request for Information we are releasing today asks for public feedback to help us better understand how to carry out this directive in a way that is careful, thoughtful, and cost-effective.

***

We have considerable enthusiasm for this project. In my own case, I have seen firsthand how small business financing can have a big economic impact. When I served as the Treasurer of Ohio, we had a reduced-interest loan program to support job creation and retention by small businesses. The way the program worked was that the state could put money on deposit with banks at a below-market rate of interest, and this deposit was then linked to a same-sized loan to a small business at a correspondingly below-market rate. This so-called “Linked Deposit” program had been authorized more than twenty years earlier, but had gradually fallen into disuse.

At its core, however, the program made good sense. Small businesses are often in desperate need of financing to update and expand their operations, and if they can get inexpensive financing, they often can fertilize their ideas for growth and be even more successful. So we diagnosed the program and found that after its initial success, it had become too bureaucratic. We heard from both banks and businesses that the program, which was still paper-based, was so slow and cumbersome that nobody wanted to use it.

So we changed all that. We put the process online, rebranded it as the “Grow Now” program, and made specific commitments to those who wanted to participate in it. We told them they could fill out a typical application in 30-60 minutes, and we promised them they would have a yes-or-no answer on their application within 72 hours. That was not easy, and it required very close coordination with the banks that took part in the program. But we did it, and the “Grow Now” program really took off. Only about $20 million had been allocated when we started, but in less than two years we deployed more than $350 million, helping about 1,500 small businesses create or retain approximately 15,000 jobs across the State.

It was also exciting and interesting to see how the businesses were able to use the loan funds. I can recall a construction business in northeast Ohio that needed a loan to buy a large piece of equipment so the company could compete for new and different jobs. They got the money, they got the equipment, and they thrived. I recall a manufacturer in northern Ohio that needed money to turn their factory sideways on their property so they could utilize more space and employ more people. We funded the build-out, they executed on it, and they met their goals for growth of output, revenue, and jobs. And I recall a company in western Ohio that started out as a caterer, began making their own tents for events, recognized that they might be able to succeed as tentmakers, and needed financing to be able to bid on a major project with the U.S. Department of Defense. We got them the loan, they got the bid, and Inc. magazine named them one of its 500 fastest-growing businesses of that year!

***

The moral of this story is that business opportunity – especially opportunities for small businesses – often hinges on the availability of financing. People have immense reserves of energy and imagination. Human ingenuity is the overwhelming power that allows human beings to reinvent the future and make it so. These forces unleash what Joseph Schumpeter called the “gales of creative destruction” that constantly mold and reshape the patterns of our economic life. Innovation has sharpened our nation’s economic edge for generation after generation, but when credit is unavailable, creativity is stifled.

To make the kind of meaningful contributions they are capable of making to the American economy, small businesses – particularly women-owned and minority-owned businesses – need access to credit. Without it, they cannot take advantage of opportunities to grow. And with small businesses so deeply woven into the nation’s economic fabric, it is essential that the public – along with small business owners themselves – can have a more complete picture of the financing available to this key sector.

Some things we do know. We are releasing a white paper today that lays out the limited information we currently have about key dimensions of the small business lending landscape. According to Census data, and depending on the definition used, there are an estimated 27.6 million small businesses in the United States. We estimate that together they access about $1.4 trillion in credit. Businesses owned by women and minorities play an especially important role in this space. Women-owned businesses account for over one-third (36 percent) of all non-farming, private sector firms. The 2012 Survey of Business Owners, the most recent such information available, indicates that women-owned firms employed more than 8.4 million people, and minority-owned firms employed more than 7 million people. Those are huge numbers:  by comparison, in 2014 fewer than 8 million people were employed in the entire financial services sector.

When small businesses succeed, they send constant ripples of energy across the economy and throughout our communities. For example, a  2013 study by the Federal Reserve Bank of Atlanta found that counties with higher percentages of their workforce employed by small businesses showed higher local income, higher employment rates, and lower poverty rates. In order to succeed, businesses need access to financing to smooth their cash flows for current operations, meet unexpected contingencies, and invest in their enterprises to take advantage of opportunities as they arise. Another study found that the inability to obtain financing may have prompted one-in-three small businesses to trim their workforces and one-in-five to cut benefits.

Unfortunately, much of the available data on small business lending is too dated or too spotty to paint a full picture of the current state of access to credit for small businesses, especially those owned by women and minorities. For example, we do not know whether certain types of businesses, or those in particular places, may have more or less access to credit. We do not know the extent to which small business lending is shifting from banks to alternative lenders. Nor do we know the extent to which the credit constraints that resulted from the Great Recession persist and to what extent. The Beige Book produced by the Federal Reserve on a regular basis is a survey of economic conditions that contains a huge amount of anecdotal information about business activity around the country. But it has no systematic data on how small businesses are faring and whether or how much they are being held back by financing constraints.

Given the importance of small businesses to our economy and their critical need to access financing if they are to prosper and grow, it is vitally important to fill in the blanks on how small businesses are able to engage with the credit markets. That is why Congress required financial institutions to report information about their applications for credit from small businesses in accordance with regulations to be issued by the Consumer Bureau. And that is why we are here today for this field hearing.

***

The inquiry we are launching today is a first step toward crafting this mandated rule to collect and report on small business lending data. To prepare for the project, we have been building an outstanding team of experts in small business lending. We are enhancing our knowledge and understanding based on our Equal Credit Opportunity Act compliance work with small business lenders, which is helping us learn more about the credit application process; existing data collection processes; and the nature, extent, and management of fair lending risk. We also have learned much from our work on the reporting of home loans under the Home Mortgage Disclosure Act, which has evolved and improved considerably over the past forty years.

At the same time, we recognize that the small business lending market is much different from the mortgage market. It is even more diverse in its range of products and providers, which range from large banks and community banks to marketplace lenders and other emerging players in the fintech space. Community banks play an outsized role in making credit available to small businesses in their local communities. And unlike the mortgage market, many small business lenders have no standard underwriting criteria or widely accepted scoring models. For these reasons and more, we will proceed carefully as we work toward meeting our statutory responsibilities. And we will seek to do so in ways that minimize the burdens on industry. Our Request for Information released today focuses on several issues.

First, we want to determine how best to define “small business” for these purposes. Despite the great importance of these firms to our economy, there is surprisingly little consensus on what constitutes a small business. For example, the Small Business Administration, in overseeing federal contracting, sometimes looks at the number of employees, sometimes looks at the annual receipts, and applies different thresholds for different industries. For our part, the Consumer Bureau is thinking about how to develop a definition that is consistent with the Small Business Act, but can be tailored to the purposes of collecting business lending data. So we are looking at how the lending industry defines small businesses and how that affects their credit application processes. Having this information will help us develop a practical definition that advances our goals and aligns with the common practices of those who lend to small businesses.

Second, we want to learn more about where small businesses seek financing and the kinds of loan products that are made available to them. Our initial research tells us that term loans, lines of credit, and credit cards are the all-purpose products used most often by our small businesses. In fact, they make up an estimated three-fourths of the debt in the small business financing market, excluding the financing that merchants or service providers extend to their small business customers to finance purchases of the sellers’ own goods and services. But we want to find out if other important financing sources are also being tapped by small businesses. Currently, we have limited ability to measure accurately the prevalence of lenders and the products they offer. We also want to learn more about the roles that marketplace lenders, brokers, dealers, and other third parties may play in the application process for these loans. At the same time, we are exploring whether specific types of institutions should be exempted from the requirement to collect and submit data on small business lending.

Third, we are seeking comment about the categories of data on small business lending that are currently used, maintained, and reported by financial institutions. In the statute, Congress identified specific pieces of information that should be collected and reported. They include the amount and type of financing applied for; the size and location of the business; the action taken on the application; and the race, ethnicity, and gender of the principal owners. Congress determined that the reporting and disclosure of this information would provide a major boost in understanding small business lending. At the same time, we are sensitive to the fact that various financial institutions may not currently be collecting and reporting all of this information in the context of other regulatory requirements. And we understand that the changes imposed by this rule will create implementation and operational challenges.

So we will look into clarifying the precise meaning of some of these required data elements to make sure they are understood and consistently reported. We will be considering whether to add a small number of additional data points to reduce the possibility of misinterpretations or incorrect conclusions when working with more limited information. To this end, we are seeking input on the kinds of data different types of lenders are currently considering in their application processes, as well as any technical challenges posed by collecting and reporting this data. We will put all of this information to work in thinking carefully about how to fashion the regulation mandated by Congress under Section 1071 of the Dodd-Frank Act.

Finally, the Request for Information seeks input on the privacy implications that may arise from disclosure of the information that is reported on small business lending. The law requires the Consumer Bureau to provide the public with information that will enable communities, government entities, and creditors to identify community development needs and opportunities for small businesses, especially those owned by women and minorities. But we also are authorized to limit the data that is made public to advance privacy interests. So we will be exploring options that protect the privacy of applicants and borrowers, as well as the confidentiality interests of financial institutions that are engaged in the lending process.

***

The announcement we are making today, and the work we are doing here, reflect central tenets of the Consumer Financial Protection Bureau. We are committed to evidence-based decision-making. We aim to develop rules that meet our objectives without creating unintended consequences or undue burdens. We want to see a financial marketplace that offers fairness and opportunity not just to some, but to all. A marketplace that does so without regard to race, ethnicity, gender, or any of the other elements of our fabulous American mosaic. We all know that small businesses are powerful economic engines. They supply jobs that lift people out of poverty or dependence, teach essential skills, and serve as backbones of our communities. So we mean to meet our obligation to develop data that will shed light on their ability to access much-needed financing. It is essential to their future growth and prosperity, and therefore to the growth and prosperity of us all. Because what Cicero observed in ancient Rome still holds true today. He said, “Nothing so cements and holds together all the parts of a society as faith or credit.”  Our communities depend on both of those precious things just as much today.

As we launch this inquiry, I want to remind all of you that we value the feedback we get. We take it seriously, consider it carefully, and integrate it into our thinking and our approach as we figure out how best to go forward with this work. So we ask you to share your thoughts and experiences to help us get there. And we thank you again for joining us today.

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The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov.

PRESS RELEASE: CONSUMER FINANCIAL PROTECTION BUREAU EXPLORES WAYS TO ASSESS THE AVAILABILITY OF CREDIT FOR SMALL BUSINESSES

consumer financial protection bureau

FOR IMMEDIATE RELEASE:
May 10, 2017

CONTACT:
Office of Communications
Tel: (202) 435-7170

CONSUMER FINANCIAL PROTECTION BUREAU EXPLORES WAYS TO ASSESS THE AVAILABILITY OF CREDIT FOR SMALL BUSINESSES 
CFPB Asks for Public Feedback on Ways to Bridge the Information Gap on Small Business Lending

Washington, D.C. – The Consumer Financial Protection Bureau today launched an inquiry into ways to gather and use new and existing information to identify the financing needs of small businesses, especially those owned by women and minorities. Small businesses typically need access to credit to take advantage of growth opportunities, yet public information on this lending market is inconsistent and incomplete. The Request for Information asks for public feedback to help the Bureau better understand how to bridge this information gap. The Dodd-Frank Wall Street Reform and Consumer Protection Act requires the CFPB to collect data about small business lending to help identify needs and opportunities in the market and to facilitate enforcement of fair lending laws.

“Small businesses fuel America’s economic engine, create jobs, and nurture communities. Yet little is known about how well the lending market serves their financing needs,” said CFPB Director Richard Cordray. “This inquiry will help us learn how we can best fulfill our duty to collect and report information on small business lending.”

The Request for Information can be found at: http://files.consumerfinance.gov/f/documents/201705_cfpb_RFI_Small-Business-Lending-Market.pdf

Small businesses foster community development and fuel economic growth both nationally and locally, and access to financing is crucial to their success. It is estimated that small businesses provide jobs for almost half of all private sector employees, and have created two out of every three jobs since 1993. A 2013 study by the Federal Reserve Bank of Atlanta found that counties with a higher percentage of their workforce employed by small local businesses showed higher local income and employment rates, and lower poverty rates. Based on publicly available data, and depending on the definition used, there are an estimated 27.6 million small businesses in the United States. This includes 9.8 million businesses owned by women and 7.9 million businesses owned by minorities.

Today, the CFPB is also releasing a white paper reviewing the available evidence concerning the small business lending landscape. The Bureau estimates that small businesses access about $1.4 trillion in financing. However, current information on how small businesses engage with credit markets is incomplete or dated and does not paint a full picture of access to financing, particularly for small business owned by women and minorities. For example, current information does not reflect whether there is more or less access to credit for a small business depending on its type or location. Nor does it show to what extent small business lending is shifting from banks to alternative lenders. And it does not indicate whether the tighter credit triggered by the Great Recession still persists.

The CFPB’s Request for Information aims to enhance the Bureau’s understanding of the small business lending industry. Section 1071 of the Dodd-Frank Act requires financial institutions to compile, maintain, and report information about their applications for loans from small businesses, including those owned by women and minorities, in accordance with regulations to be issued by the Bureau. Today’s action is a first step toward crafting a rule for the collection and reporting of this lending data. The CFPB is exploring topics including:

  • What defines a small business: Despite the pivotal role it plays in the U.S. economy, small business has a number of widely different definitions. Some are based on the number of employees or annual receipts. The Bureau is seeking to learn more about how small businesses are defined by lenders and how that affects their credit application processes. From responses to the Request for Information, the Bureau aims to work toward a practical definition.
  • What institutions lend to small businesses and what products are offered: In its Request for Information, the CFPB is seeking to learn more about where small businesses turn for financing and the various products they choose. The Bureau is also looking into the roles of lending marketplaces, brokers, dealers, and other third parties in the small business lending application process.
  • What types of business lending information are used by financial institutions: The Bureau aims to learn more about the business lending information that is currently used, maintained, and reported by financial institutions. This includes what types of data are collected from small business borrowers, and when it is collected during the application process. The Bureau is exploring how best to implement a reporting requirement for this information that will meet the objectives of Section 1071 while minimizing the burden on financial institutions.
  • Privacy impact of the public release of small business lending data:Some data that may be collected could involve sensitive, private, or confidential information. The CFPB is exploring how to protect the privacy of loan applicants and borrowers, as well as the confidentiality interests of financial institutions in this process. The Request for Information provides an opportunity for the public to discuss ways the information can be shared as required by statute while easing privacy and confidentiality concerns.

The CFPB is requesting comments from individual businesses, consumer groups, community development organizations, bank and nonbank lenders, regulators, and all other interested parties. The comment period for the public inquiry will end 60 days after the Request for Information is officially published in the Federal Register.

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The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov.

Richard Martinez of RISE PROGRAMS: True Love

Richard Martinez Rise Programs

LOVE SUFFERS LONG

I have search and read many definitions of LOVE but the Bible to me has the best description of what love looks like.

1 Corinthians 13:4-8
“Love never gives up.
Love cares more for others than for self.
Love doesn’t want what it doesn’t have.
Love doesn’t strut,
Doesn’t have a swelled head,
Doesn’t force itself on others,
Isn’t always “me first,”
Doesn’t fly off the handle,
Doesn’t keep score of the sins of others,
Doesn’t revel when others grovel,
Takes pleasure in the flowering of truth,
Puts up with anything,
Trusts God always,
Always looks for the best,
Never looks back,
But keeps going to the end.
“Love never dies”

In verse 4 another translations goes like this, “love suffer long and is kind…”
What does it mean when it says, “suffers long”? Love involves sacrifice. We can sacrifice and not love, but we cannot love and not sacrifice. Anyone can give something that is expensive but it’s a whole other thing to give away something that is valuable. It takes sacrifice to give something away that is valuable.
It feels like is cost much more when we don’t “feel” like doing or giving it. Love is this way, many times we do not “feel” like doing or giving it and we value our “feelings” and “wants” so much, it takes sacrifice to give them up in order to love someone else. I believe learning to love is the truest and foundational calling on our all of our lives.

In todays culture love & lust, & Joy & pleasure are being confused and mixed up. When pleasure becomes the goal in life and relationships things get weird. God likes pleasure and made it for us but when it becomes a focus in our life our relationships it will begin to rob us of Joy & Love.
Love is not love until it cost you something to give it away. Love suffers long and if you do not ever want to get hurt or feel pain in your life, you will never have the truest and most powerful form of love. You can have pain & not have love but you cannot have love without pain. The door that opens to love creates the opportunity for pain.

Fellowship of suffering is attaching ourselves to those who are suffering and struggling in the midst of helping them out. When you love someone you will end up loving those who are suffering therefore you will suffer when loving.
Rom. 12:15 Rejoice with those who rejoice, and weep with those who weep.

Phil. 3:7-10 But what things were gain to me, these I have counted loss for Christ. Yet indeed I also count all things loss for the excellence of the knowledge of Christ Jesus my Lord, for whom I have suffered the loss of all things, and count them as rubbish, that I may gain Christ and be found in Him, not having my own righteousness, which is from the law, but that which is through faith in Christ, the righteousness which is from God by faith; that I may know Him and the power of His resurrection, and the fellowship of His sufferings, being conformed to His death
2Tim. 2:3 You therefore must endure hardship as a good soldier of Jesus Christ.

When you love someone who is suffering your soul will begin to suffer with him or her because of the love that ties your souls together. This doesn’t mean to invite people in your life to punish you or to torment you in the name of suffering long. Suffering for Christ does not mean having a martyr spirit & not being able to enjoy like, have money, have pleasure etc… Suffering long is LOVING LONG.

Richard Martinez
Transformation Expert

Insurance Tips from Adriana’s Insurance: www.adrianasinsurance.com

adraianas insurance

4 Types of Coverage to Protect your Next Trip

by Adriana’s Insurance

Whether it’s for business or pleasure, traveling on vacation is a riskier routine than most people realize. It’s easy to plan for the fun and leisure you expect to enjoy, but ignoring the possibility of accidents and mishaps sets the stage for a host of avoidable problems. People can fall ill while on vacation for example. Or they can encounter theft and loss of property. Almost everyone has a horror story or two about misplaced wallets, reckless baggage handlers, stolen cameras, or even cracked cell phones while on vacation. The farther away the journey is from home, the more important it is to make sure you are protected from being stranded under difficult circumstances. Travel insurance certainly can’t prevent bad things from happening. It can, however, soften the blow of having to make difficult decisions suddenly in a strange environment.

Travel Insurance refers to insurance coverage that is specifically designed to supplement or provide monetary compensation for costs related to medical treatment, lost property, accidents, trip cancellation and other calamities that occur while traveling domestically or abroad. There are four main types of coverage related to travel insurance:

1. Emergency Medical Coverage
2. Personal Effects Coverage
3. Trip Cancellation Coverage
4. Accidental Death Coverage

Emergency Medical Coverage
Medical coverage related to travel insurance specifically targets emergency healthcare situations in which travelers have to seek treatment from unfamiliar health care providers. Emergency medical coverage can offer compensation for expenses such as hospital stays, minor treatment, or special travel accommodations like air-lifting and general evacuation. Emergency medical coverage is perhaps the most important reason people should purchase travel insurance because needing medical treatment outside of your medical provider network can happen over even the simplest decisions… like going for it on that plate of sautéed frog’s legs.

2. Personal Effects Coverage
Can you imagine spending days taking the perfect selfies on location only to lose your phone to a pickpocket? Or shopping for a treasure trove of exotic clothes only to have an airline lose your luggage on the way home? There’s a sinking feeling in the pit of your belly that happens when you lose something valuable. That feeling doesn’t have to be there though with personal effects coverage. Personal effects coverage related to travel insurance provides travelers with a financial consolation in the event that their possessions are stolen, damaged or lost during a trip. This type of coverage requires subscribers to provide their insurers with a detailed inventory of personal belongings. Because personal effects coverage is also featured in policies for homeowners and renters insurance, it’s important to confirm whether there is any overlapping coverage before opting to purchase it under travel insurance.

3. Trip Cancellation Coverage
We’ve all been there. The tickets were bought, the rental was booked, the hotel reservations were locked in, and out of nowhere, boom – a change of plans makes following through impossible. It’s painful to watch all those Mai Tais at the beach you daydreamed of just vanish into thin air. Canceled plans are the worst but there’s an easy way to get your cash back even in the tightest emergencies. Trip cancellation coverage is an option under travel insurance that provides financial reimbursement for situations where passengers are compelled to abandon their travel plans unexpectedly. This could happen for any number of reasons. For instance, an accident could make it necessary to go home as soon as possible, or a natural disaster could make traveling to a desired destination out of the question. During such events, having coverage that reimburses subscribers for the unused portion of their travel provides a cushion against losing money over squandered bookings.

4. Accidental Death Coverage
Accidental death coverage related to travel insurance provides financial support in the event of bereavement during travel. It gives subscribers the option to facilitate transportation and burial needs that would otherwise create strain for friends and family who bear the responsibility of organizing funeral arrangements. As is the case with personal effects coverage, it’s important to confirm whether there’s any overlap between accidental death policies and any life insurance policy you may currently have.

Travel insurance varies based on the intended destination and duration of travel. Nonetheless, the more elaborate the trip, the more important it is to protect oneself from the possibility of suffering preventable financial losses. For more information, visit any of our offices or give us a call at 1-800-639-7654 to find out how Adriana’s Insurance Services can help you secure comprehensive coverage that caters to your unique needs.

Adriana’s Insurance | May 9, 2017 at 11:10 am | URL: http://wp.me/p6wQuY-1jM

SPOTLIGHT: Richard Martinez of Rise Programs

Richard Martinez Rise Programs

 

 

www.riseprograms.com

Richard Martinez is a recognized leader in the world of coaching, entrepreneur in the business of physical and emotional health, and now one of the leading specialists of one of the most talked about shows on the internet: Despegando Show. He is well known for advising the Latino community, reaching thousands of people who want to experience a radical change for a more fulfilling life.

“Discipline leads to excellence”, and he has perfected that with the use of the best technical practices, to heal and empower people. He listens and advises through innovative methods of effective training. These have had the best results with his “risers “, who have experienced positive changes.

The study and training of a great leader like Richard Martinez has led him to work beside the best health and wellness experts in the world such as, Dr. Andrew Weil; Director of the Center for Integrative Medicine Arizona, the great recognized and acclaimed Dr. Deepak Chopra; leader in the field of “mind-body” medicine, Dr. David Katz; director of the Prevention Research Center at Yale University, and Dr. Water Willet; President Nutrition at Harvard University. These are only some among other great personalities, and researchers internationally, that Richard Martinez has had the opportunity to work with.

www.itsrichardmartinez.com

 

A leader is distinguished as a visionary, and Richard Martinez is no exception. He has taken the risk of crossing the language barrier, and has been dedicated to transforming nations through education. He has been equipping and strengthening leaders in different areas, who are committed to their people. As part of this vision, he has participated in different organizations such as “Healing Hearts and Nations” (HHN), which is currently in more than 22 countries in Africa, and more than 15 major cities in India. One of his programs that seeks to create positive energy in young people, takes place within the walls of the Hip Hop School of Arts, where he has been director for two years.

The commitment of Richard and his team has crossed many borders. One of them being Africa where they established “Training Centers”. They have also created an orphanage called “Lynsi Love Orphanage”, which houses a school with education levels ranging from grade 1 to 3.

Richard Martinez teaches that mental and physical health is an important part of learning. It is proven that by keeping these two areas in balance, it is easier to get a clear mind that leads to a successful life. With the realization of such a life affecting need, he became the owner and manager of his own business “You-nification”. Here he helps his customers to unify their body, soul, and spirit, which leads them to achieve their full potential. They are then allowed to find their true purpose, and passion to experience life.

PRESS RELEASE: CONSUMER FINANCIAL PROTECTION BUREAU MONTHLY SNAPSHOT SPOTLIGHTS STUDENT LOAN COMPLAINTS

consumer financial protection bureau

FOR IMMEDIATE RELEASE:
April 25, 2017

CONTACT:
Office of Communications
Tel: (202) 435-7170

CONSUMER FINANCIAL PROTECTION BUREAU MONTHLY SNAPSHOT SPOTLIGHTS STUDENT LOAN COMPLAINTS
Report Also Looks at Consumer Complaints from Nevada

WASHINGTON, D.C. – Today the Consumer Financial Protection Bureau (CFPB) released a monthly complaint snapshot highlighting consumer complaints about student loans. The snapshot shows that both private and federal student loan borrowers nationwide report persistent servicing breakdowns that may sideline their path to repayment. This month’s report also highlights trends seen in complaints coming from Nevada. As of April 1, 2017, the Bureau had handled approximately 1,163,200 consumer complaints across all products.

“Student loan servicers play an important role in helping millions of people manage the loans they take out to pursue an education,” said CFPB Director Richard Cordray. “Unfortunately, borrowers continue to report difficulties and setbacks as they try to work with their servicers to manage their loan debt.”

The Monthly Complaint Report can be found at: http://files.consumerfinance.gov/f/documents/201704_cfpb_Monthly-Complaint-Report.pdf

Category Spotlight: Student Loans
At $1.4 trillion, student loan debt represents the U.S.’s second largest debt market behind mortgages. More than 44 million student loan borrowers rely on the companies servicing their loans to manage all aspects of repayment, including providing borrowers with available repayment options when they are struggling to repay their loans. In September 2015, the Bureau released a report outlining widespread servicing failures and sloppy, patchwork practices reported by both federal and private student loan borrowers. As of April 1, 2017, the Bureau had handled approximately 44,400 student loan complaints from consumers. Some of the findings in the snapshot include:

  • Consumers complain about poor information from and sloppy practices by servicers: Of all the complaints the Bureau receives about student loans, over half—64 percent—are about problems consumers experience when dealing with their student loan servicer. Consumers who reach out to their servicer complain they are not informed about options that would allow them to continue repaying their loan, such as income-driven repayment plans. Rather, consumers complain that their servicer directs them into plans that suspend repayment and cause the interest on their loans to pile up. Consumers also complain that their monthly student loan payments are misapplied by the servicer, which the Bureau believes can cause a range of problems including negative credit reporting and loss of certain loan benefits, such as cosigner release for private student loans.
  • Consumers complain about difficulty enrolling and staying in an income-driven repayment plan: Consumers complain about processing delays and inaccurate denials when submitting an income-driven repayment plan application to their servicer. These complaints include documents being lost by the servicer, application processing times spanning several months, missed payment towards loan forgiveness, and unclear guidance when enrolling into a new income-driven repayment plan. Additionally, consumers complain of receiving insufficient information from their servicers to meet recertification deadlines for their income-driven repayment plan.
  • Consumers report confusion about their progress toward Public Service Loan Forgiveness programs: Consumers express concerns about their standing in Public Service Loan Forgiveness and other loan forgiveness programs. These borrowers complain that after years of making payments, they learn that their loans are not enrolled in a qualifying repayment plan, despite borrowers telling their servicers that they were pursuing Public Service Loan Forgiveness. Other borrowers complain that their servicer did not explain that consolidating their loans would wipe out all previous progress made towards loan forgiveness.
  • Companies with the most student loan-related complaints: The three companies that the Bureau has received the most average monthly student loan complaints about are Navient Solutions, LLC, Fedloan Servicing/AES, and Nelnet.

The Bureau has also reported on consumer complaints to highlight the unique challenges that certain populations of consumers with student loan debt face, including older Americans, servicemembers, veterans with disabilities, and previously defaulted borrowers.

National Complaint Overview
As of April 1, 2017, the CFPB had handled approximately 1,163,200 complaints nationally. Some of the findings from the statistics being published in this month’s snapshot report include:

  • Complaint volume: For March 2017, debt collection was the most-complained-about financial product or service. Of the approximately 28,000 complaints handled in March, there were 8,711 complaints about debt collection. The second most-complained-about consumer product was credit reporting, which accounted for 5,498 complaints. Mortgages were third most-complained-about financial product or service, accounting for 3,965 complaints. 
  • Product trends: In a year-to-year comparison examining the three-month time period of January to March, student loan complaints showed the greatest increase—325 percent—of any product or service. The Bureau received 773 student loan complaints between January and March 2016, while it received 3,284 complaints during the same time period in 2017. Part of this year-to-year increase can be attributed to the CFPB updating its student loan complaint form to accept complaints about federal student loan servicing, starting in late February 2016. The Bureau also initiated an enforcement action against a large student loan servicer during the time period covered by this report. 
  • State information: Montana, Georgia, and Wyoming experienced the greatest year-to-year complaint volume increases from January to March 2017, versus the same time period 12 months before; with Montana up 54 percent, Georgia up 46 percent, and Wyoming up 45 percent. 
  • Most-complained-about companies: The top three companies that received the most complaints from November 2016 through January 2017 were Navient Solutions, LLC, Equifax, and Experian.

Geographic Spotlight: Nevada
This month, the CFPB highlighted complaints from Nevada and the Las Vegas metro area.  As of April 1, 2017, consumers in Nevada have submitted 14,600 of the 1,163,200 complaints the CFPB has handled. Of those complaints, 10,800 came from consumers in the Las Vegas metro area. Findings from the Nevada complaints include:

  • Rate of debt collection complaints similar to the national average: Complaints related to debt collection accounted for 29 percent of all complaints submitted by consumers from Nevada. This is slightly higher than the rate of 27 percent at which consumers nationally submit debt collection complaints to the Bureau.
  • Rate of mortgage complaints mirrors the national average: Complaints related to mortgages accounted for 23 percent of all complaints submitted by consumers from Nevada, which is identical to the national rate of mortgage complaints submitted.
  • Most-complained-about companies: Wells Fargo, Experian, and Equifax were the most-complained-about companies from consumers in Nevada.

The Dodd-Frank Wall Street Reform and Consumer Protection Act, which created the CFPB, established consumer complaint handling as an integral part of the CFPB’s work. The CFPB began accepting complaints as soon as it opened its doors in July 2011. It currently accepts complaints on many consumer financial products, including credit cards, mortgages, bank accounts and services, student loans, vehicle and other consumer loans, credit reporting, money transfers, debt collection, and payday loans.

In June 2012, the CFPB launched its Consumer Complaint Database, which is the nation’s largest public collection of consumer financial complaints. When consumers submit a complaint they have the option to share publicly their explanation of what happened. For more individual-level complaint data and to read consumers’ experiences, visit the Consumer Complaint Database at: www.consumerfinance.gov/complaintdatabase/.

Company-level complaint data in the report uses a three-month rolling average of complaints sent by the Bureau to companies for response. This data lags other complaint data in this report by two months to reflect the 60 days companies have to respond to complaints, confirming a commercial relationship with the consumer. Company-level information should be considered in the context of company size.

To submit a complaint, consumers can:

  • Go online at www.consumerfinance.gov/complaint/
  • Call the toll-free phone number at 1-855-411-CFPB (2372) or TTY/TDD phone number at 1-855-729-CFPB (2372)
  • Fax the CFPB at 1-855-237-2392
  • Mail a letter to: Consumer Financial Protection Bureau, P.O. Box 4503, Iowa City, Iowa 52244
  • Additionally, through “Ask CFPB,” consumers can get clear, unbiased answers to their questions at consumerfinance.gov/askcfpb or by calling 1-855-411-CFPB (2372).

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The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov.

SPOTLIGHT: Adriana Gallardo of Rise Programs

riseprograms.com

 

www.riseprograms.com

Adriana Gallardo is one of Southern California’s most successful business women. As the mastermind behind Adriana’s Insurance, an empire consisting of over 60 offices, Adriana is a symbol of leadership in the insurance industry, which she has dominated for the past 20 years.

www.adrianasinsurance.com

adraianas insurance

Beyond being a powerhouse mogul, Adriana has become an inspirational figure to the community, starting with the people in her offices, where there is a sense of respect and admiration. She constantly encourages and motivates her personnel to put their heart and dedication into everything they do. She personally trains her employees and shares her experience and knowledge with all the energy that is part of her character.

www.adrianagallardo.com

Adriana Gallardo of Adriana's Insurance

Having already established her insurance business, Adriana opened her own marketing firm, Resulta2 Media Group, she is also the producer of her own reality Despegando Show, and she owns an upscale beauty salon.

www.resulta2media.com

resulta2media.com

www.vivebeautysalon.com

vive beauty salon

Adriana has shown her ability to build profitable businesses and is now ready to share her experience. After years of hard work and educating herself, she is convinced that transformational education is the key in bringing businesses to the next level of success.

CONSUMER FINANCIAL PROTECTION BUREAU SUES FOUR ONLINE LENDERS FOR COLLECTING ON DEBTS CONSUMERS DID NOT LEGALLY OWE

consumer financial protection bureau

FOR IMMEDIATE RELEASE:
April 27, 2017

CONTACT:
Office of Communications
Tel: (202) 435-7170

CONSUMER FINANCIAL PROTECTION BUREAU SUES FOUR ONLINE LENDERS FOR COLLECTING ON DEBTS CONSUMERS DID NOT LEGALLY OWE
Bureau Alleges Companies Deceived Consumers About Debt That Was Not Legally Owed

Washington, D.C. – The Consumer Financial Protection Bureau (CFPB) today took action against four online lenders – Golden Valley Lending, Inc., Silver Cloud Financial, Inc., Mountain Summit Financial, Inc., and Majestic Lake Financial, Inc. – for deceiving consumers by collecting debt they were not legally owed. In a suit filed in federal court, the CFPB alleges that the four lenders could not legally collect on these debts because the loans were void under state laws governing interest rate caps or the licensing of lenders. The CFPB alleges that the lenders made deceptive demands and illegally took money from consumer bank accounts for debts that consumers did not legally owe. The CFPB seeks to stop the unlawful practices, recoup relief for harmed consumers, and impose a penalty.

“We are suing four online lenders for collecting on debts that consumers did not legally owe,” said CFPB Director Richard Cordray. “We allege that these companies made deceptive demands and illegally took money from people’s bank accounts. We are seeking to stop these violations and get relief for consumers.”

Golden Valley Lending, Inc., Silver Cloud Financial, Inc., Mountain Summit Financial, Inc., and Majestic Lake Financial, Inc. are online installment loan companies in Upper Lake, California. Since at least 2012, Golden Valley Lending and Silver Cloud Financial have offered online loans of between $300 and $1,200 with annual interest rates ranging from 440 percent up to 950 percent. Mountain Summit Financial and Majestic Lake Financial began offering similar loans more recently.

The Bureau’s investigation showed that the high-cost loans violated licensing requirements or interest-rate caps – or both – that made the loans void in whole or in part in at least 17 states: Arizona, Arkansas, Colorado, Connecticut, Illinois, Indiana, Kentucky, Massachusetts, Minnesota, Montana, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, and South Dakota. The Bureau alleges that the four lenders are collecting money that consumers do not legally owe. The CFPB’s suit alleges that Golden Valley Lending, Silver Cloud Financial, Mountain Summit Financial, and Majestic Lake Financial violated the Truth in Lending Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act. The specific allegations include:

  • Deceiving consumers about loan payments that were not owed: The lenders pursued consumers for payments even though the loans in question were void in whole or in part under state law and payments could not be collected. The interest rates the lenders charged were high enough to violate usury laws in some states where they did business, and violation of these usury laws renders particular loans void. In addition, the lenders did not obtain licenses to lend or collect in certain states, and the failure to obtain those licenses renders particular loans void. The four lenders created the false impression that they had a legal right to collect payments and that consumers had a legal obligation to pay off the loans.
  • Collecting loan payments which consumers did not owe: The four lenders made electronic withdrawals from consumers’ bank accounts or called or sent letters to consumers demanding payment for debts that consumers were under no legal obligation to pay.
  • Failing to disclose the real cost of credit: The lenders’ websites did not disclose the annual percentage rates that apply to the loans. When contacted by prospective borrowers, the lenders’ representatives also did not tell consumers the annual percentage rate that would apply to the loans.

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB is authorized to take action against institutions engaged in unfair, deceptive, or abusive acts or practices, or that otherwise violate federal consumer financial laws like the Truth in Lending Act. The CFPB is seeking monetary relief for consumers, civil money penalties, and injunctive relief, including a prohibition on collecting on void loans, against Golden Valley and the other lenders. The Bureau’s complaint is not a finding or ruling that the defendant have actually violated the law.

A copy of the complaint filed in federal district court is available at: http://files.consumerfinance.gov/f/documents/201704_cfpb_Golden-Valley_Silver-Cloud_Majestic-Lake_complaint.pdf

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The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov.

PRESS RELEASE: CONSUMER FINANCIAL PROTECTION BUREAU ISSUES $1.25 MILLION FINE TO SERVICEMEMBER AUTO LENDER FOR VIOLATING CONSENT ORDER

consumer financial protection bureau

FOR IMMEDIATE RELEASE:
April 26, 2017

CONTACT:
Office of Communications
Tel: (202) 435-7170

CONSUMER FINANCIAL PROTECTION BUREAU ISSUES $1.25 MILLION FINE TO SERVICEMEMBER AUTO LENDER FOR VIOLATING CONSENT ORDER
Auto Loan Company Failed to Provide Redress for Illegal Collection Tactics

Washington, D.C. — The Consumer Financial Protection Bureau (CFPB) today took action against Security National Automotive Acceptance Company (SNAAC), an auto lender specializing in loans to servicemembers, for violating a Bureau consent order. In 2015, the CFPB ordered SNAAC to pay both redress and a civil penalty for illegal debt collection tactics, including making threats to contact servicemembers’ commanding officers about debts and exaggerating the consequences of not paying. SNAAC violated the 2015 order by failing to provide more than $1 million in refunds and credits, affecting more than 1,000 consumers. Today’s consent order requires SNAAC to make good on the redress it owes to those consumers and pay an additional $1.25 million penalty.

“This company violated a Bureau order when it failed to get money back to servicemembers it had hounded with illegal debt collection tactics,” said CFPB Director Richard Cordray. “We are making sure this company finally rights its wrongs.”

SNAAC, based in Mason, Ohio, is an auto-finance company that operates in more than two dozen states and specializes in loans to servicemembers, primarily to buy used vehicles. In June 2015, the CFPB sued SNAAC for aggressive collection tactics against consumers who fell behind on their loans. If servicemembers lagged behind on payments, SNAAC’s collectors would threaten to contact—and in many cases did contact—their chain of command about their debts. Also, the company exaggerated the consequences of not paying. For instance, they told some consumers that failure to pay could result in action under the Uniform Code of Military Justice, demotion, discharge, or loss of security clearance. But these consequences were extremely unlikely. The CFPB alleged that SNAAC’s aggressive tactics, which took advantage of servicemembers’ special obligations to remain current on debts, victimized thousands of borrowers.

In October 2015, a CFPB consent order found that SNAAC had indeed engaged in unfair, deceptive, and abusive acts and practices while collecting on these auto loans. The order required SNAAC to pay $2.275 million in consumer redress through credits and refunds, and a $1 million civil penalty. Consumers with an account balance were to receive credits to their accounts, and consumers with a zero balance were to receive cash refunds. While SNAAC submitted two plans that claimed to provide the full amount of redress ordered, both were designed to underpay such redress. Acting on a tip from a servicemember’s father, the CFPB discovered that SNAAC had issued worthless “credits” to hundreds of consumers and failed to provide proper redress to many more.

The CFPB is issuing today’s consent order against SNAAC for violating the terms of the 2015 consent order by failing to properly give refunds or credits to affected borrowers. In today’s order, the CFPB found that the company had failed to meet its obligation to pay redress to consumers by:

  • Issuing worthless “credits” to settled-in-full accounts: In purporting to provide redress, SNAAC treated accounts that were settled-in-full as having a positive account balance. Instead of providing refunds to consumers with settled-in-full accounts, SNAAC issued worthless account “credits.” Those consumers received no benefit from such a “credit” because they no longer owed SNAAC money and could not use such a credit toward any new or existing loan.
  • Issuing worthless “credits” to discharged accounts: SNAAC also issued worthless account “credits” to consumers whose debts had been discharged in bankruptcy, and who no longer owed SNAAC money on their auto loan. SNAAC had no legal claim to any unpaid balance, and these consumers received no benefit from the “credits.” SNAAC had, in fact, already stopped collections on these accounts.
  • Failing to properly give redress to consumers making payments under settlement agreements:  Some SNAAC consumers were making payments under settlement agreements. But SNAAC based redress on the original, higher account balance in place before it agreed on a settlement with the borrower. As a result, in many instances, SNAAC issued credits that exceeded consumers’ settlement balances, rather than refund any amount above what the consumers actually owed. And because their settlement balances were improperly credited, some consumers unwittingly overpaid SNAAC to settle their accounts. 

Enforcement Action
Under the Dodd-Frank Act, the CFPB is authorized to take action against institutions engaged in unfair, deceptive, or abusive acts or practices, or that otherwise violate federal consumer financial laws. Under today’s consent order: 

  • SNAAC must pay redress as promised to affected consumers: SNAAC must pay the Bureau roughly $720,000, which the Bureau will send as refunds to about 925 consumers. SNAAC must issue about $370,000 in new credits to over 1,000 consumers with remaining account balances as well as properly credit roughly 1,000 consumers making payments under settlement agreements. SNAAC must also pay $75,000 to the Bureau to cover the costs of distributing these payments.
  • SNAAC must pay a $1.25 million penalty: SNAAC must pay a penalty of $1.25 million to the CFPB Civil Penalty Fund, in addition to the $1 million penalty it paid under the 2015 consent order.

The text of the consent order is found here: http://files.consumerfinance.gov/f/documents/201704_SNAAC-consent-order.pdf

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The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov.