Sharks never stop moving. They don’t close their eyes. They can smell a drop of blood from a quarter of a mile away, and once they catch a whiff, they don’t give up pursuit.
Sound familiar? While most of us will never encounter a shark in open waters, chances are high that you’ll come face to face with another species of shark-like predator if you work in the consumer finance industry.
I’m referring not to so-called “loan sharks,” but to regulators. Much like oceanic carnivores stalking their prey, agencies like the Consumer Finance Protection Bureau represent a serious and ongoing menace to the finance organizations unfortunate enough to swim in their sights. Its shape may be distant and murky, and you may be able wriggle past it if you’re careful, but the danger never really goes away. And all it takes to draw the CFPB’s relentless attention is a single drop of blood.
If your organization ever participates in any kind of illegal activity—or simply neglects to take the correct precautionary measures—you’re as good as chum.
In other words, if your organization ever participates in any kind of illegal activity—or simply neglects to take the correct precautionary measures—you’re as good as chum. Make the wrong move one time, and you’ll have sharks on your tail until you make it out of the water or get devoured. That said, there are plenty of fish in the sea (so to speak), and many lenders and their partners are able to successfully cohabitate with sharks by doing—and not doing—5 things: