On December 20, 2022, the Consumer Financial Protection Bureau (CFPB) ordered Wells Fargo Bank to pay more than $2 billion in redress to consumers and a $1.7 billion civil penalty for legal violations across several of its largest product lines. The bank’s illegal conduct led to billions of dollars in financial harm to its customers and, for thousands of customers, the loss of their vehicles and homes. Consumers were illegally assessed fees and interest charges […]
Tag: UDAAP
STATE OF NEW YORK ISSUES AN INDUSTRY LETTER TO ALL STATE CHARTERED BANKS! WILL THERE BE MORE?
On July 12, 2022, The New York State Department of Financial Services (DFS) issued an Industry Letter providing guidance on overdraft and non-sufficient funds (NSF) fees to depository institutions that it supervises. The DFS indicated that, through the supervisory process, it identified several unfair or deceptive acts or practices regarding the imposition of overdraft and NSF fees. The Industry Letter intended to alert New York institutions that the DFS “will evaluate whether Institutions are engaged in deceptive […]
Day 2 – ABA RCC
Welcome from Orlando and day two of the annual ABA Regulatory Compliance Conference. It was a jammed packed day of listening and learning from boots on the ground peers. My focus today was on a variety of topics; from CRA modernization, Patty Joyner’s take on today’s hybrid work environments, UDAAP, and the evolution of risk framework. It was hard to choose what sessions to attend. There were so many great topics to choose from. However, […]
FDIC ISSUES CMP FOR DECEPTIVE ADVERTISING
On March 10, the Federal Deposit Insurance Corporation (FDIC) issued a consent order to Magnolia Bank, Magnolia, KY, which included a $425,000 civil monetary penalty for violations of Section 5 of the Federal Trade Commission Act (UDAP). The FDIC found that the bank deceptively advertised “interest rates and fees for residential mortgage loans as the lowest on the market, with a promise of a ‘best rate guarantee,’ comparative shopping for such rates, and lower rates due […]
CFPB EXPANDS DISCRIMINATION PROTECTION TO DEPOSIT ACCOUNTS
On March 16, 2022, the Consumer Financial Protection Bureau (CFPB) announced that is using Unfair, Deceptive and Abusive Acts and Practices (UDAAP) rules to prevent discrimination in all consumer finance markets including credit, servicing, collections, consumer reporting, payments, remittances, and deposits. Examiners will require supervised companies to show their processes for assessing risks and discriminatory outcomes, including documentation of customer demographics and the impact of products and fees on different demographic groups. The CFPB will […]