WASHINGTON, D.C. -

With officials saying some auto finance companies “deceived” individuals in multiple ways, the Consumer Financial Protection Bureau recently tabulated that its supervisory actions during the first four months of the year uncovered “illegal activities” that led to approximately $24.5 million in restitution to more than 257,000 consumers.

The bureau’s report also highlighted issues CFPB examiners found through the agency’s examination of businesses not only in auto loan origination, but also debt collection, mortgage origination and small-dollar lending.

“This report highlights our ongoing work to address violations of the law and slipshod practices that endanger consumers,” CFPB director Richard Cordray said. “The bureau’s supervisors continue to perform more and better oversight of these financial markets, and their report gives the industry an opportunity to reflect on their practices before consumers are made to suffer harm.”

The 12th edition of Supervisory Highlights covers activities completed generally between January and April. The regulator went into its auto finance work in detail.

CFPB examiners determined that one or more auto finance companies “deceived” consumers into thinking their add-on product would fully cover the balance of a consumer’s loan in the event of the loss of their vehicle.

“In fact, the product covered less than the vehicle’s value,” the CFPB said.

Bureau examiners also said they found one or more auto finance companies “deceived” consumers about terms of a loan deferral, saying the only effect would be to extend the life of the loan and to accrue interest during the deferral.

“They didn’t tell consumers that subsequent payments would be applied to cover the interest earned on the unpaid amount from the date of the consumer’s last payment,” the bureau said. “This tactic could lead to the consumer paying more in finance charges than the lender originally disclosed.

“Examiners noted this practice broke the law regarding deceptive acts and practices,” the CFPB added.

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB has authority to supervise certain nonbanks, including mortgage companies, private student lenders and payday lenders, as well as nonbanks the bureau defines through rulemaking as “larger participants.”

To date, the Bureau has issued rules to supervise the larger participants in the markets of consumer reporting, consumer debt collection, student loan servicing, international money transfers and auto finance.

Supervisory work during the first four months of 2016 in connection with debt sales also aided an enforcement action that returned nearly $5 million to consumers and imposed $3 million in civil money penalties, according to the CFPB.

The bureau went on to mention how often there was a failure to provide adverse action notices.

Under the Fair Credit Reporting Act, the CFPB emphasized consumers must be notified of any adverse action, such as denial of credit, based on information in a consumer report. Consumers must also receive information about the consumer reporting agency that produced the report, which would note that the reporting agency did not make the decision to take adverse action and cannot provide the consumer the specific reasons why it happened.

“Examiners found the violations were caused by a lack of appropriate training, and inadequate policies and procedures,” the CFPB said.

The latest CFPB report can be downloaded here.