Consumer lending

A two-year-old lawsuit by the CFPB may be languishing, but nine members of the Teachers Federation of America sued the student loan servicing giant alleging that it misled borrowers in public service professions in order to line its pockets.

Banks are being encouraged to offer smaller loans as an alternative to payday products, but their high interest rates can still put consumers in debt.

The senior Democratic lawmaker said the CFPB chief and the Trump administration "are doing everything in their power to roll back consumer protections."

The firm hopes to distinguish itself from other lenders by analyzing customer cash flow to determine the likelihood that borrowers will repay.

Two credit unions are part of a fintech pilot program to help borrowers set aside money to pay down student debt faster.

By using the app, which will go live Monday in a pilot program, customers can point their phone at a vehicle and get an augmented reality overlay that provides all its critical info: the make, model and year of the car, as well as its price range and other information.

The subprime auto lender Prestige Financial Services used machine learning to make more effective lending decisions than its former model.

Gov. Jerry Brown’s administration sent letters Wednesday to 20 nonbank lenders that charge triple-digit annual percentage rates to try to determine if their use of online referrals is steering borrowers into larger loans than they want or need.

Sen. Warren proposes a bill that would extend the law to credit unions while stiffening penalties; the Spanish bank taps UBS’s Andrea Orcel.

The report from an advocacy group that focuses on college affordability says schools need to do a better job of educating students about their eligibility for federal loans, which typically carry lower interest rates than loans from private-sector lenders like credit unions.

By using the app, which will go live Monday in a pilot program, customers can point their phone at a vehicle and get an augmented reality overlay that provides all its critical info: the make, model and year of the car, as well as its price range and other information.

Already tasked with fixing Wells Fargo's scandal-plagued retail bank, Mary Mack has added a second big job: running a consumer lending operation that is dealing with reputational issues of its own.

The report from an advocacy group that focuses on college affordability says that schools need to do a better job of educating students about their eligibility for federal loans, which typically carry lower interest rates than loans from banks and other private-sector lenders.

Speaking at an investor conference in New York, John Shrewsberry addressed a recent media report saying regulators had rejected Wells Fargo’s restitution plan for overcharged auto customers.

Four lenders, led by Sallie Mae, have long dominated the market for private student loans. But they could soon face new competition from Navient and Nelnet.

The Minneapolis bank is betting that it has the heft — and the brand recognition — to compete for deposits in states where its biggest rivals already dominate.

U.S. Bank’s announcement that it will begin offering small installment loans could open the door for other financial institutions to offer them as an alternative to pricey payday loans.

The nation's fifth-largest bank on Monday rolled out a three-month consumer loan that is far less expensive than the typical payday loan. The move comes as regulators are encouraging banks to reach out to the subprime market, which they largely abandoned.

Delinquencies have held steady for a year, and observers are optimistic about upcoming third-quarter data. But the long-term question is whether solid underwriting can overcome higher vehicle prices and consumer debt burdens.

Net income up is up for the industry on average, but the number of federally insured credit unions has dropped to 5,480.