AML and UDAAP: Secrecy vs. transparency
Following a documented process should increase bank confidence when aiming to balance AML and consumer fairness risk.
Browsing: UDAAP
CFPB issues advisory opinion on pay-to-pay, convenience fees
As part of its ongoing efforts to address so-called “junk fees,” the CFPB today issued an advisory opinion stating that the Fair Debt Collection Practices Act prohibits debt collectors from charging “pay-to-pay” or convenience fees—which include fees imposed for making a payment online or by phone—unless those fees are expressly authorized by the agreement creating the debt or the amount of the fee is affirmatively permitted by law.
ABA, trade groups: CFPB exceeds authority with exam manual update
CFPB’s change is “contrary to law and subject to legal challenge” as well as potential congressional action, the groups said.
GOP lawmakers: CFPB must undo changes to UDAAP enforcement, adjudications
House Republican lawmakers this week slammed recent changes made by the CFPB to its supervision examination manual for unfair or deceptive acts and practices and its rules of practice and procedure regarding administrative adjudication procedures, noting that these actions “deviate significantly from past practices” and were taken outside of the notice and comment process.
CFPB to examine nonbanks for consumer risks
The Consumer Financial Protection Bureau today said it would invoke a “largely unused” authority under the Dodd-Frank Act to directly examine nonbank financial services providers. “Given the rapid growth of consumer offerings by nonbanks, the CFPB is now utilizing a dormant authority to hold nonbanks to the same standards that banks are held to,” said CFPB Director Rohit Chopra.
CFPB to Increase Fair Lending, UDAAP Supervision
The CFPB today signaled its intention to ramp up supervision activity around fair lending laws and unfair, deceptive and abusive acts and practices.
CFPB Issues Compliance Bulletin on Auto Repossessions
In a compliance bulletin issued today, the CFPB signaled that it will hold auto loan holders and servicers “accountable for [unfair, deceptive or abusive acts and practices] related to the repossession of consumers’ vehicles.”
Compliance Priorities for 2022
Ensuring your compliance team is ready for what is ahead begins with confronting a set of challenges in these key areas.
Mortgage Servicers Face Forbearance-Exit Tsunami and Aggressive Regulators
“We think the new administration will be aggressive and, quite frankly, willing to press the boundaries, since they can’t really know the limits of their authority unless they test it.”
Chopra Addresses ‘Abusive’ Standard, Enforcement, 1033 Rulemaking in First Hill Appearance
In his first appearance before the House Financial Services Committee today, CFPB Director Rohit Chopra told lawmakers that although he agreed with Acting Director David Uejio’s decision to rescind a policy statement on “abusive” conduct issued by former Director Kathy Kraninger, he has “huge aspirations to create durable jurisprudence” regarding the definition of “abusive” in the Dodd-Frank Act.