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 latest corporate compliance news around the topic of CFPB Compliance. Tools and insights to keep you out of the regulator’s crosshairs.
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.
The Consumer Finance Protection Bureau isn’t the only regulator keeping watch over your finance company—far from it. Much like the Justice League (or the Legion of Doom), there’s a multitude of federal agencies, such as the Department of Justice, the Federal Trade Commission, the Federal Deposit Insurance Corporation, and the Department of Housing and Urban […]
The Consumer Financial Protection Bureau probably isn’t going away, but it may be changing. As I wrote last week, the United States House of Representatives recently passed H.R. 10, the Financial CHOICE Act, which aims to curb the CFPB’s authority by altering the Bureau’s funding structure, giving the President the power to remove CFPB directors […]
Earlier this month, the United States House of Representatives passed H.R. 10, otherwise known as the Financial CHOICE Act. Introduced by House Financial Services Committee Chairman Rep. Jeb Hensarling (R-Texas), the legislation aims to bring about sweeping changes to the Dodd–Frank Wall Street Reform and Consumer Protection Act and the Consumer Financial Protection Bureau.
CFPB requirement or competitive advantage—why not both? Last week, with Michael Benoit of Hudson Cook, we explored the regulatory side of consumer complaints. Michael walked us through how the Consumer Financial Protection Bureau evaluates institutions’ consumer complaint programs for evidence of overall compliance. We also learned the five key elements of the consumer complaint resolution process […]
We write a lot about the Consumer Financial Protection Bureau on this blog: its exams, its operational focus, its love-hate relationship with the Executive Branch… But these topics may soon be irrelevant. As a relatively young and politically divisive regulatory agency, the CFPB could, in the near future, evolve into something entirely different than how […]