Dealing with the risks posed by the use of algorithms in marketing financial products and with institutions abusing their dominant market positions are some of the key priorities for the CFPB.
During a recent interagency webinar, representatives from eight federal regulators discussed fair lending issues, including initiatives to tackle redlining and how companies can self-regulate.
LendUp Loans agreed to a $100,000 settlement to resolve charges of repeated violations of fair lending laws. Two previous actions against the company yielded nearly $5 million in penalties and redress.
State attorneys general could be leading the conversation on enforcement of consumer financial protection laws moving forward, according to compliance attorneys.
Two CBA executives argued that regulation by enforcement means compliant behaviors can change at a moment’s notice and cause confusion for the industry as firms try to interpret enforcement outcomes. Rulemaking and guidance, they believe, is the way to go.
The bureau held a press call last week discussing data on overdraft and NSF fees from two reports and outlining the steps it intends to take to reduce such fees. The reports show banks’ revenue from these fees is relatively stable, save for a significant drop in 2020.
Federal and state agencies are back to fully enforcing communication timing requirements found in Regulation X. However, they will consider the impact of COVID-19 when deciding supervisory and enforcement actions.
In his first testimony to Congress as CFPB director, Rohit Chopra took aim at the agency he inherited, particularly the idea that larger firms get away without proportional punishment compared to smaller ones.
Not happy with the policy statement on abusiveness issued by his predecessor, the bureau’s new director said he wants to create a durable jurisprudence on the meaning of abusiveness.
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