Consumer Bureau Action Tracker

CFPB – Paymap Inc. and LoanCare, LLC


State

Nationwide

target

LoanCare, LLC

Topics

Enforcement, Add-On Products, Credit Cards, Mortgages

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]

Status

Inactive or Resolved


2015-CFPB-0018 7/28/2015 7/28/2015

CFPB Takes Action Against Mortgage Payment Company And Servicer For Deceptive Ads
http://www.consumerfinance.gov/policy-compliance/enforcement/actions/loancare-servicing/

  • Consumer Financial Protection Bureau (CFPB)
  • Administrative filing
  • None
  • Nonbank
  • $33,400,000
  • Not Available

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