Articles

US government fines Wells Fargo $3 billion for its ‘staggering’ fake-accounts scandal

New York (CNN Business)Wells Fargo was hit with a $3 billion fine Friday by federal authorities outraged by the millions of fake accounts created at the troubled bank over many years.  The settlement with the Justice Department and Securities and Exchange Commission, years in the making, resolves Wells Fargo’s criminal and civil liabilities for the fake-accounts scandal that erupted nearly four years ago.

Consumer Financial Protection Bureau Issues Supplemental Notice of Proposed Rulemaking on Time-Barred Debt Disclosures

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today issued a Supplemental Notice of Proposed Rulemaking (Supplemental NPRM) regarding the collection of time-barred debt. The Bureau proposes to prohibit collectors from using non-litigation means (such as calls) to collect on time-barred debt unless collectors disclose to consumers during the initial contact and on any required validation notice that the debt is time-barred. Consumer research conducted by the Bureau found that a time-barred debt disclosure helps consumers understand that they cannot be sued if they do not pay. That can help consumers make better informed decisions whether to pay the debt or not.

LendingClub’s Radius deal paves the way for more fintech purchases, experts say

LendingClub wanted a quicker route to becoming a bank, so it opened up its wallet and decided to buy one.    The online credit marketplace announced Tuesday it is buying Boston-based Radius Bank in a cash-and-stock transaction valued at $185 million. The fintech, which had been mulling various paths to a banking charter for the last year, says acquiring the online bank will provide greater regulatory clarity and cheaper funding for its loans

It’s Spring Training Time for Auditors

Resource Management Services, Inc. announces it’s program for Spring Training for auditors and compliance oversight professionals with the Oversight Without Travel Series.  Launched to date are the Call Monitoring course (approximately 1.5 hours) and the Compliance Management Systems course (approximately 4 hours).  Expect to see Financial Auditing and Bank Accounts in the very near future.  Web-based, self-paced courses, without travel – get 50% off your spring training in now with code “Spring”.  Save even more with the two-course bundle.  Get ready for the audit season now with our Spring training special. Check it out at rms-training.thinkific.com

Lawmakers call out big banks for lack of leadership diversity

Diversity and inclusion strategies at big banks need an upgrade, House lawmakers concluded in a recent report, and the onus is on executives to drive those efforts.   “There is no shortage of diverse people and businesses for banks to hire and promote. Just a shortage of leaders, including bank leaders, with the will to make it happen,” said Rep. Al Green, D-TX, in a statement.

Predatory Lender Offering “Vehicle Title Pawns” Ordered to Pay More Than $2.2 Million to Maryland Consumers

BALTIMORE, MD (February 21, 2020) – Maryland Attorney General Brian E. Frosh announced today that his Consumer Protection Division has issued a Final Order against CashN-Go, Inc., Brent M. Jackson, and related businesses owned and operated by Jackson under the “Cash-N-Go” name for making unlicensed and usurious consumer loans. Although Cash-N-Go claimed that they were entering into pawn transactions with consumers, the Division found that Cash-N-Go was instead making illegal consumer loans with interest rates of 360%.

FTC Staff Provides Annual Letter to CFPB On Equal Credit Opportunity Act Activities

The staff of the Federal Trade Commission has provided the Consumer Financial Protection Bureau (CFPB) with an annual summary of its activities enforcing the Equal Credit Opportunity Act (ECOA).   The FTC is responsible for ECOA enforcement and education regarding most non-bank financial service providers. In its summary, FTC staff describes the Commission’s work on ECOA-related issues, including activities addressed in research and policy development such as:

Gen Z is Leading the Way to Alternative Payment Options

Millennials are often seen as the most digitally savvy generation, but they were actually raised during a time when the internet was still nascent technology. In contrast, Generation Z, or those who were born between 1995 and 2015, grew up with smartphones for toys — and it is for this reason that they’re nicknamed the iGeneration. And when it comes to payments, it’s this population of young digital natives that are demanding newer and more technologically advanced options. In 2018, CO-OP Chief Product Officer Bruce Dragt covered the basics of alternative payment methods (APMs), which are helping us transition to a cashless society. As the name suggests, APMs offer payment options other than the traditional cash-based or credit card systems already in place. While different APMs target different age brackets and types of consumers, a significantly wider adoption is observed among Gen Zers.

NCR: How FIs Can Triumph Over the Challenger Bank Challenge

For traditional financial institutions (FIs), especially smaller FIs and credit unions (CUs), the age of disruption is here. Digital banks are poised to lure consumers away from the JPMorgans, the Citibanks, the Wells Fargos of the world, as digital-centric offerings prove too tempting to resist, sweetened with higher interest rates on deposits, easy-to-use apps, speed and convenience. Maybe not. As Douglas Brown, senior vice president and general manager of NCR Corporation, told Karen Webster in a recent interview, the concept of just what a bank is — and whether challenger banks actually represent an existential threat — is due for a reassessment.

CFPB Event: Evolutions in Consumer Debt Relief

The Consumer Financial Protection Bureau will host a day-long convening, ‘Evolutions in Consumer Debt Relief.’ The event will explore options for consumers facing unmanageable unsecured debt and limited credit options.
The event will explore options for consumers facing unmanageable unsecured debt and limited credit options. Panelists include representation from creditors, consumer advocates, and bankruptcy experts, as well as providers of debt settlement, debt management, and credit counseling services.  See link for registration info and more.  Also, will be live streamed.