Welcome to Compli’s year-end blog countdown! To mark the end of 2018, we’re taking a look back at our most popular consumer finance- and lending-related blog posts over the last 12 months—the articles you read, shared, and emailed us about the most this year.
So, without further ado (and because everyone skips past these introductions anyway), let’s get to it. Drumroll, please…
Among the many acronyms, abbreviations, and jargon in the consumer finance industry, there are the obvious ones, and then there the assemblages of characters that look like the results of random pounding on a keyboard. “UDAAP” falls into the second category—but it’s not nearly as complicated as it looks. In theory, at least, UDAAP is actually relatively straightforward.
Why does your organization need a compliance management system?
Host Kynzie Sims posed that question to our friend and collaborator Eric Johnson during a popular 2018 episode of the Smart Compliance Podcast. Eric is a partner at Hudson Cook’s Oklahoma office, and a go-to attorney for members of the auto dealer and consumer lending industries. He told Kynzie why implementing a Compliance Management System (or CMS) is considered a best practice regardless of whether an organization is required to have one in place.
When you spend your time worrying about compliance, it can be easy to forget that regulations aren’t the only driving force in the consumer lending industry. Credit products evolve not only in response to the decisions of federal and state legislators, but in accordance with the changing needs, tastes, and preferences of another, perhaps more powerful group:
Consider, for instance, the new trend of point-of-sale lending. Instead of using credit cards to finance their purchases, many consumers—particularly younger consumers—are now opting to take out dedicated personal loans offered during the checkout process. To keep up with demand, numerous banks and financial technology companies have developed offerings that allow borrowers to secure credit instantly, at the moment of purchase. These POS loans are frequently smaller and shorter-term, and carry higher interest rates, than their traditional counterparts.
What’s behind the trend?
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