consumer protection Tag Archives — Securities Fraud Lawyers Blog

With Cordray’s Resignation, What’s Next for the CFPB?

Published on: November 17, 2017 | by Savage Villoch Law, PLLC

This week, Richard Cordray handed in his resignation as head of the Consumer Financial Protection Bureau (CFPB). The early resignation comes at a time of increased criticism over current financial regulations and an uncertain outlook for many regulatory bodies. The CFPB especially, has been subject of intense criticism from the financial industry as overbearing and stifling.

As Director, Cordray was very much the face and voice of the bureau. Under Cordray, the Consumer Bureau held very close to the guiding tenets under which it was created: to protect financial consumers from unethical behavior. His departure leaves senior officials in the bureau and supporting lawmakers scrambling to secure the future of the CFPB against a regulatory overhaul.

What exactly is the CFPB?

Dodd-Frank Cuts Likely Under Banking Regulation Reviews

Published on: February 3, 2017 | by Savage Villoch Law, PLLC

Uncertain Future for Dodd-Frank

Last week, President Trump ordered a review of major banking regulations put in place following the 2008 financial crisis, largely comprising Dodd-Frank regulations. President Trump has made clear that rollbacks are a main objective for these reviews.

Though the executive order only calls for a review, the Trump administration aims to make major cuts to banking regulations, largely affecting Dodd-Frank’s enforcement measures: Volcker Rule and the Consumer Financial Protection Bureau (CFPB).

Reverse Mortgage Consumers Face False Claims

Published on: December 12, 2016 | by Savage Villoch Law, PLLC

Reverse Mortgage Companies See Reversal of Fortunes

This week, the Consumer Financial Protection Bureau (CFPB) announced charges against three top reverse mortgage companies with false claims and deceptive advertising. These companies lured consumers into reverse mortgage contracts under the claim that they would not stand a chance of losing their homes, among other promises.

American Advisors Group, Reverse Mortgage Solutions and Aegean Financial have all been ordered to cease deceptive advertising, comply with regulations and pay penalties by the CFPB.

Top Consumer Financial Complaints

Published on: December 5, 2016 | by Savage Villoch Law, PLLC

Each month, the Consumer Financial Protection Bureau (CFPB) publishes a complaint report outlining and highlighting volume and percentage of consumers’ reported financial complaints.

The CFPB is an agency tasked with providing consumers with financial protection and empowerment by improving existing consumer protection rules, enforcing rules and providing tools and resources for consumers.

Analyzing Financial Complaints

Financial Securities Firm Left Customers Vulnerable

Published on: November 21, 2016 | by Savage Villoch Law, PLLC

Insecure Financial Securities

Last week, the Financial Industry Regulatory Authority (FINRA) handed out a $650,000 fine to a broker-dealer in the Lincoln Financial Network. The industry watchdog group found that the independent broker-dealer in Lincoln Financial’s network allowed thousands of customers’ data to be exposed to foreign hackers.

Similarly FINRA also found that Lincoln Financial Securities Corp. failed to ensure the security of their customers’ consolidated reports.

SEC Warns of Form 4 Investment Scams

Published on: November 7, 2016 | by Savage Villoch Law, PLLC

The Securities and Exchange Commission (SEC) has announced that investors should be on the lookout for fraudulent claims using Forms 4.

A Form 4 is filed when investment insiders (officers, directors and anyone holding 10% or more in company securities) execute transactions. A Form 4, which must be filed within two days following a transaction, serves to inform the public of the insider’s transactions in company stock and other securities.

Apparently, scammers and fraudsters are posing as brokers and providing false Forms 4 and other official documentation to investors in order to sell them fake shares. By using forms that appear to be sent from the SEC and other regulatory agencies, scammers seek to legitimize fraudulent claims.

5 Ways to Recover Your Financial Investments

Published on: October 27, 2016 | by Savage Villoch Law, PLLC

Risk-taking is a natural part of making financial investments

These should be calculated risks, though; risks based on performance projections of whatever is being invested in.

Though financial investments should not include those unforeseen or unaccounted for risks like fraud, investors are constantly facing it.

Fed Leaves Interest Rates Unchanged

Published on: September 28, 2016 | by Savage Villoch Law, PLLC

Low Interest Rates Remain

The Federal Reserve has decided to leave interest rates alone for the foreseeable future, according to a report from Reuters. Despite the fact that a target rate-hike was announced last December, the Fed has deferred any increases as part of a long-term plan to reignite the U.S. economy.

President of the Minneapolis Federal Reserve, Neel Kashkari, stated that “the U.S. economy has room to grow before it overheats”.

Wells Fargo Ends Sales Goals in Wake of Fraud

Published on: September 19, 2016 | by Savage Villoch Law, PLLC

This is an update to a previously posted article – “Wells Fargo Pays Out $190 in Financial Fraud Claim”. Read the full story here.

In the wake of the massive fraud scandal stemming from a sales incentives initiative, Wells Fargo as announced that it is ending the company-wide sales product goals.

The banking giant, ordered to pay $190 million in damages and fines earlier this month, stated that as of Jan. 1, 2017 it would eliminate product sales goals. The decision is an effort by the bank to recoup customer faith and public standing.

CFPB Database Reveals Wolves of Wall Street

Published on: September 7, 2016 | by Savage Villoch Law, PLLC

Jordan Belfort may have bestowed the title ‘Wolf of Wall Street’ on himself, but we all know that wolves travel in packs – and it looks like Wall Street is full of them. The Consumer Financial Protection Bureau (CFPB) a financial watch-dog group has recently released a database outlining complaints against several of the nation’s top banking and investment groups. The database, which focuses heavily on Wall Street stalwarts, including Citibank (part of Citigroup) and Chase (of JPMorgan Chase), is chock full of consumer complaints against these financial giants in regards to predatory banking tactics.

By navigating a simple search by name of any number of these banks, consumers can find mass-stores of complaints lodged against them, most stemming from the 1999 repeal of the Glass-Steagall Act.

Instituted in 1933, the Glass-Steagell Act served to prevent banks holding insured deposits from affiliating with investment banks and brokerage firms on Wall Street. The Glass-Steagall Act protected consumers from falling prey to stock fraud and financial abuse from these entities. Under pressure from large Wall Street firms, such as Citigroup, the Act was repealed under the Clinton Administration, ushering in a new era of gross misconduct and financial abuse on an unwitting public and laying the groundwork for the eventual economic crash in 2008.