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CFPB

Online Lenders’ Use of ACH Can Lead to Cascading Fees, Account Closures for Consumers, CFPB Report Finds

Online lenders’ use of ACH networks to request payments can result in mounting fees and even account closure for borrowers with insufficient funds. That’s according to a new study from the CFPB, which took a look at the ACH behavior of lenders who, per the Bureau, make “online payday or other high-cost online loans with payments scheduled on a borrower’s payday.”

CFPB, DOJ Announce $21.9M Settlement with Toyota Motor Credit Corp.

Yesterday, the Consumer Financial Protection Agency and the Department of Justice announced a $21.9 million dollar settlement with the Toyota Motor Credit Corporation. The settlement – and the consent order that comes along with it – may seem of peripheral interest to the ARM industry, but the action offers sharp lessons for the ARM industry on how regulators are using data to track UDAAP violations and how regulators expect financial services agencies to balance employee discretion with agency-wide non-discrimination policies.