It’s been a wild few months for the consumer lending industry. Between new leadership at the Consumer Financial Protection Bureau and the rise of “mini-CFPBs” brought about by state legislatures and attorneys’ general offices, the balance of regulatory power has shifted and seesawed. The definitions of “unfair,” “deceptive,” and “abusive”—words at the heart of fair lending laws—change not only depending on who’s in charge, but in tandem with emerging technology and trends.
At the same time, lenders face the same questions all business owners do: who to hire, who to promote, and who to let go, as well as how to protect employees from bias and harassment—and how to protect leadership from potential legal action.
No wonder today’s dealers are in search of practical workforce compliance guidance. Fortunately, that’s exactly what the team here at Compli spends our days developing—and the past 6 months have been especially busy for us. Now that 2018 is already more than halfway over, take a look at some of our top fair lending compliance articles of the year so far:
What is UDAAP? Definition, Examples and Potential Risks
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.
In practice, on the other hand…
6 Mistakes to Avoid During a Termination Meeting (Infographic)
Terminations aren’t usually anyone’s favorite part of their job, but sometimes they’re unavoidable. If you’re in the position of needing to terminate someone, you want to make sure to do it right. While it may never be easy, following a few simple steps can help minimize the impact on the terminated employee and your organization overall.
Point of Sale Lending Trends Show Who’s Really in Charge in Consumer Finance
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? Changing consumer needs. Consumers want less risk, more convenience, and greater flexibility. And there’s a deeper emotional component, too.
For more articles, and all things fair lending compliance, make sure to stay up to date with the Compli blog!