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- Director Kraninger fails to provide monetary relief to consumers who are ripped off by predatory companies
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"This is a critical function of the Bureau--restitution not only gets money back into the hands of victimized consumers, but also ensures that companies that rip off consumers do not get to keep their ill-gotten gains," wrote Brown.
In particular, Brown criticized a recent
The full text of the letter is below and the PDF can be found HERE (https://www.banking.senate.gov/download/cfpb-restitution-letter)
Dear Director Kraninger:
I write regarding the
The Bureau's failure to return funds to harmed consumers began under Acting Director Mulvaney and has continued since you became Director:
Despite this finding, the Bureau decided to limit restitution to only those consumers who affirmatively "complained about a false threat or misrepresentation" by
There was no legal basis for the Bureau to shortchange victimized consumers and limit restitution to just those consumers who complained. The Bureau made a conscious decision to disregard all legal precedent and allow
In order to understand the basis for the Bureau's settlement with
1. Identify the number of consumers who meet the definition of "Affected Consumer," and for each, state the amount of restitution they will receive pursuant to the Bureau's consent order with
to collect a debt; or
b. Collected any portion of debt.
3. State the total amount of funds that
4. Produce all documents and communications referring or relating to the issue of restitution in the Bureau's settlement with
5. Produce all communications between the Bureau and
Thank you in advance for your response.
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2/ The Consumer Financial Protection Act authorizes the Bureau to obtain "any appropriate legal or equitable relief," including restitution, disgorgement, and payment of damages or other monetary relief. 12 U.S.C. Sec. 5565(a).
3/ See Peterson, Christopher. Dormant:
4/ In the Matter of
7/ In the Matter of
11/ See Consumer Financial Protection Bureau Settles with
11/ In the Matter of:
12/ Id. 3.a.
14/ Id. (quoting
15/ See CFPB v.
16/ Universal Debt, 2019 WL 1295004 at *19.