The CFPB recently issued a report finding systemic compliance problems at nonbanks. The report largely focused on the problems identified during the bureau’s examination of payday lenders, debt collectors and consumer reporting agencies from November 2013 until February 2014. The entities were fined more than $70 million in remediation actions that were not previously publicized. The report breaks out key areas of concern, including the threatening lawsuits, failure to investigate disputes, harassment and mishandling of complaints.
Although the report focused on non-prepaid specific nonbanks, the CFPB noted that all companies under CFPB supervision are expected to use the study and anecdotes on violations as a roadmap to foster industry-wide compliance. The report’s focus on a sound consumer compliance management system is a key focus for CFPB examiners across the board.
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