In 2015, the CFPB ordered Paymap Inc., a subsidiary of Western Union, to “return $33.4 million to consumers,” alleging they had marketed a program to borrowers by “grossly overstating how much they would save in interest by paying their mortgage on a biweekly basis.” Additionally, the CFPB fined Paymap $5 million.

• Paymap is a “wholly owned subsidiary of Western Union” based in “Englewood, Colo.” “LoanCare, a mortgage servicer in Virginia Beach,” worked in partnership with Paymap. [Lisa Prevost, Penalties for a Payment Processor, The New York Times, 08/09/15]

• It was alleged that “Paymap, on a website and through its employees, oversold the benefits of its program, claiming average interest savings of more than $33,000 without any data to back up the claim.” A very small percentage of customers experienced that level of savings. [Lisa Prevost, Penalties for a Payment Processor, The New York Times, 08/09/15]

• “Consumers typically paid a fee of $295 to sign up” for “an electronic payment system that automatically withdrew money from their bank accounts. Paymap charged a transaction fee of $2.50 for every automatic withdrawal, fees it shared with partner servicers. LoanCare received an estimated $400,000 in customer fees from the program.” [Lisa Prevost, Penalties for a Payment Processor, The New York Times, 08/09/15]

• LoanCare was ordered to “pay a fine of $100,000” in addition to the $33.4 million returned to customers. [Lisa Prevost, Penalties for a Payment Processor, The New York Times, 08/09/15]