Consumer Bureau Action Tracker

CFPB – First Investors Financial Services Group


State

Texas

target

First Investors Financial Services Group Inc.

Topics

Enforcement, Auto Loans, Credit Reporting, Add-On Products, Credit Cards

In August 2014, the CFPB issued an order against First Investors Financial Services Group alleging that First Investors “provided wrong data on how much customers were paying toward their loans, misreported delinquency dates and total amounts of delinquencies and mischaracterized whether a vehicle was repossessed or ‘voluntarily surrendered’ by the consumer.” The company “attributed [the errors] to software purchased by a vendor” but First Investors took no action beyond reporting the problem to the vendor to rectify the situation. The company was ordered to pay a “$2.75 million fine.”

  • The company was alleged by the CPFB to have “provided wrong data on how much customers were paying toward their loans, misreported delinquency dates and total amounts of delinquencies and mischaracterized whether a vehicle was repossessed or ‘voluntarily surrendered’ by the consumer.” These errors, which the company “attributed to software purchased by a vendor,” “included inaccurate credit score data and defaults rates, among others.” While the problem was reported to the software vendor, no further actions to mitigate the effects of these reporting inaccuracies was taken. As a result, the errors “potentially hurt thousands of consumers over a three-year period.” [Rachel Witkowski, “Lender Fined for Flawed Credit Reports”, American Banker, 08/21/14; Nicholas Ballasy, “CFPB Levies $2.75M Fine Against Auto Lender”, Credit Union Times, 08/20/14]

Status

Inactive or Resolved


2014-CFPB-0012 8/20/2014 8/20/2014

CFPB Takes Action Against Auto Finance Company for Distorting Borrower Credit Reports
http://www.consumerfinance.gov/policy-compliance/enforcement/actions/first-investors-financial-services/

  • Consumer Financial Protection Bureau (CFPB)
  • Administrative filing
  • None
  • Nonbank
  • $2,750,000
  • Not Available

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