Mr. MICHAEL CALHOUN (Center for Responsible Lending): Their payment might go up by 35 rather than 45 percent, but it still will be an unaffordable payment for most of these borrowers.
According to the Center for Studying Health System Change, direct-payment practices increased from 9.2 percent of the market in 2001 to 12.4 percent by 2008.
In its first public enforcement action, the CFPB found that third-party call-center vendors of Capital One Bank pressured or misled customers into paying for payment protection and credit monitoring products when they activated their credit cards, according to a press release.
Misled about eligibility: Although most of the payment protection benefits kicked in when consumers became disabled or lost a job, some call center representatives marketed and sold the product to ineligible unemployed and disabled consumers.