Tom Hudson and Eric Johnson from Hudson Cook stopped by the Smart Compliance Blog to chat about the future of the CFPB. On June 8, the U.S. House of Representatives passed House Financial Services Committee Chairman Jeb Hensarling’s (R-Texas) Financial Choice Act of 2017 by a vote of 233-186. The vote was straight down party lines, except […]
The latest corporate compliance news around the topic of CFPB Compliance. Tools and insights to keep you out of the regulator’s crosshairs.
Audit. Yuck. Along with “bankruptcy,” “lawsuit,” and “cyberattack,” “audit” is one of those words that can instantly raise a consumer finance executive’s blood pressure. Even if the thought of an audit doesn’t cause agita or insomnia, it tends to elicit a grimace. No one wants to undergo an audit. At best, it takes away precious […]
Should consumer finance companies be allowed to use contracts to guard themselves against class-action lawsuits? Before last week, relatively few people outside of the industry felt one way or another.
We’ve said it before and we’ll say it again: to understand the CFPB, you need to understand another acronym—UDAAP. The Consumer Financial Protection Bureau exists, in large part, to guard consumers against what regulators deem “unfair, deceptive, or abusive acts and practices.” To that effect, half of the enforcement matters that the CFPB has made […]
You already know what happens when you assume. (Or at least I’m assuming you do—so what does that make me?) In terms of fair lending compliance, however, there’s a much greater price to assumption: a Consumer Financial Protection Bureau enforcement action.
Right now probably isn’t the best time to start a small-dollar lending business. On levels both state and federal, financial regulators are setting their sights on operations that offer consumers payday loans and other kinds of of short-term credit with high annual percentage rates.
The Consumer Financial Protection Bureau’s contentious final rule on arbitration agreements is scheduled to go into effect soon, and it looks like Congress won’t be able to stop it. According to American Banker, “[t]he [finance] industry has been counting on a Republican-controlled Congress to strike down the CFPB’s rule using the Congressional Review Act, but […]
There are lawsuits, and then there are class action lawsuits. The former can cause cluster headaches, slow down business growth, and eat away at your organization’s emergency fund; the latter can pose an existential threat.
There’s at least one thing a finance company should never do after receiving a consumer complaint: ignore it. According to guidance from the Consumer Financial Protection Bureau, the complaint resolution process should begin as soon as a complaint comes in. Intake may lead to escalation, and escalation leads to response, analysis, and resolution.