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.”
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.
The Higher Education Affordability Act, proposed by Sen. Tom Harkin (D-Iowa), would require the Department of Education to terminate contracts with private collection agencies if they violate the FDCPA or UDAAP.
Larger participants in the debt industry need to prepare for CFPB supervision, and an essential part of that preparation will be to establish a formal compliance management system.
Did you see the adorable photos this weekend of the rare “mono mono” twins born holding hands? Did their intimate bond from birth give you a warm feeling inside? Well, I’m about to ruin it for you.
The Consumer Financial Protection Bureau ordered Bank of America on Tuesday to pay about $727 million as part of a consent order related to the bank’s credit card add-on products. Bank of America will also pay $20 million in civil penalties. In all, it’s the largest enforcement action levied by the CFPB to date. From 2010 […]
Bank of America is in talks with the Consumer Financial Protection Bureau to pay an $800 million settlement over allegations that the bank deceived customers when selling them additional credit card products. If finalized, the settlement would be the largest levied by the CFPB to date. This wouldn’t be the first time the CFPB has taken […]