Financial Compliance

CFPB Supervisory Highlights: Student Lending

The CFPB has released its Supervisory Highlights Special Edition on Student Lending, Issue 36. This document details findings from supervisory examinations concerning private student loans, including issues with refinancing disclosures, illusory benefits, noteholder liability, illegal collection tactics, and federal loan servicing during the return to repayment.

CFPB Supervisory Highlights Issue 37

The Consumer Financial Protection Bureau (CFPB) has released Supervisory Highlights Issue 37, detailing recent findings in deposit accounts, furnishing, and short-term small dollar lending. The report highlights violations of the Fair Credit Reporting Act and unfair practices related to overdraft fees, with significant refunds issued by mortgage servicers and originators.

CFPB Orders Equifax $15M Penalty for FCRA Violations

The Consumer Financial Protection Bureau (CFPB) has ordered Equifax, Inc. and Equifax Information Services LLC to pay a $15 million civil money penalty for violations of the Fair Credit Reporting Act (FCRA). The order addresses failures in reinvestigating consumer disputes, preventing improper reinsertion of deleted information, and ensuring data accuracy.

CFPB Orders American Honda Finance $12.8M Penalty and Redress

The Consumer Financial Protection Bureau (CFPB) ordered American Honda Finance Corporation (Honda Finance) to pay a $2.5 million civil money penalty and $10.3 million in consumer redress. The order addresses violations of the Fair Credit Reporting Act (FCRA) related to inaccurate reporting of consumer payment deferrals during the COVID-19 pandemic.

CFPB Orders Wise US Inc. $450k Redress and $44,955 Penalty

The CFPB has amended a consent order against Wise US Inc., requiring the company to provide approximately $450,000 in consumer redress and pay a $44,955 civil money penalty. The order resolves violations related to deceptive marketing disclosures and failures to comply with EFTA and Regulation E requirements.

CFPB Fines Draper & Kramer $1.5M, Bans Mortgage Lending

The CFPB fined Draper & Kramer Mortgage Corporation $1.5 million and banned it from residential mortgage lending for violations of the Equal Credit Opportunity Act. The Bureau has since issued a no-action letter, ceasing monitoring and enforcement of the consent order due to the company ceasing operations and the Bureau's resource prioritization.

CFPB v. Synapse Financial Technologies - Consumer Protection Enforcement

The CFPB has taken enforcement action against Synapse Financial Technologies, Inc. for alleged violations of the Consumer Financial Protection Act, resulting in a $1 civil money penalty and injunctive relief. The action stems from Synapse's failure to maintain adequate records of consumer funds, leading to a shortfall of $60-90 million and loss of access to funds for consumers.

FINRA Interpretive Letters on Rule Application

FINRA has published interpretive letters providing guidance on the application of specific FINRA rules under various circumstances. These letters clarify staff views on rules related to communications with the public, account transfers, and registration categories.

FINRA FAQs on Compliance, Advertising, AML, and Trade Reporting

FINRA has published a collection of Frequently Asked Questions (FAQs) covering various compliance topics, including customer assistance in investigations, 529 Savings Plans, accounts at other broker-dealers, advertising, alternative display facilities, anti-money laundering, arbitration, blue sheets, books and records, breakpoints, broker-dealer registration, recruitment disclosures, BrokerCheck, business continuity planning, and CRD.

FINRA Exemptive Letters List

FINRA has published a list of its exemptive letters, including those related to TRACE ATS Reporting, Municipal Securities, and Initial Public Offerings (IPOs). These letters provide guidance to industry professionals on FINRA's decision-making rationale for specific situations.