CFPB targets Paymap and LoanCare for deceptive ads

July 28, 2015

CFPB targets Paymap and LoanCare for deceptive ads

CFPB on Tuesday said it has taken action against Paymap Inc. and LoanCare LLC for deceiving consumers with advertisements for a mortgage payment program that promised thousands of dollars in interest savings.

Under the terms of the orders announced Tuesday, Paymap will return $33.4 million in fees to consumers and pay a $5 million civil penalty to the CFPB, and LoanCare will pay a $100,000 civil penalty.

Paymap Inc. is a Colorado-based payment processing company, and LoanCare Servicing is a Virginia-based residential mortgage servicer. Together, the CFPB said, they marketed the "Equity Accelerator Program," an electronic payment system that enables consumers to make automatic mortgage payments via electronic debits.

CFPB said consumers were typically charged an enrollment fee of $295 when signing up for the Equity Accelerator Program and a transaction fee for each automatic debit that Paymap made, typically $2.50. Since July 21, 2011, approximately 125,000 consumers have enrolled in the Equity Accelerator Program.

The two companies advertised that consumers who enrolled in the program would have a new, biweekly payoff schedule that would save them thousands of dollars in interest payments. Instead, CFPB said, Paymap held the collected payments in custodial accounts and then paid the mortgages on their original monthly schedule.

Besides returning all fees paid by consumers since July 21, 2011, Paymap must cease unlawful advertising and marketing practices. Loancare must also cease unlawful advertising and marketing practices.

Related Resources

April 24, 2024 Add to Calendar 2024-04-24 14:00:00 2024-04-24 14:00:00 Optimize Liquidity, Maximize Loan Growth: The Network Lending Advantage About The Webinar Join us to learn more about network lending, a cooperative model allowing credit unions to optimize liquidity and achieve loan growth. Discover how credit unions can participate in loan pools with other institutions, allowing them to diversify portfolios, access loans with potentially lower risk and higher yields, and expand lending capacity without necessarily needing a surge in deposits. Delve into how credit unions can pool their resources, set common underwriting and pricing standards, and collectively originate, buy, and sell loans to optimize liquidity management. Hear from your peers about best practices, case studies, and practical strategies to harness the full potential of network lending and how it's helped their credit unions. Don't miss this valuable opportunity to learn how to strengthen your credit union's position in today’s competitive environment. Key Takeaways: How network lending differs from traditional lending The benefits of participating in loan pools with other credit unions How credit unions can set common underwriting and pricing standards and collectively originate, buy and sell loans to optimize liquidity management Why network lending is critical to loan growth Register Here Web NAFCU digital@nafcu.org America/New_York public

Optimize Liquidity, Maximize Loan Growth: The Network Lending Advantage

preferred partner

LendKey

Webinar

April 23, 2024 Add to Calendar 2024-04-23 14:00:00 2024-04-23 14:00:00 Monitoring the Latest Litigation Risks Credit unions’ operations pose litigation risks, with more of these cases being filed as class action lawsuits. In this Monitoring the Latest Litigation Risks for Credit Unions webinar, you’ll review some of the specific kinds of lawsuits impacting credit unions and what potential claims could be on the horizon. You’ll also examine some options for mitigating risks. Key Takeaways Review the current lawsuit trends. Understand the potential claims risks Explore options for mitigating risks. Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until April 23, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCRMs will recieve 1.0 CEUs for participating in this webinar NCCOs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public

Newsroom