CFPB Supervisory Highlights Issue 37

The Consumer Financial Protection Bureau (CFPB) has issued Supervisory Highlights Issue 37, a guidance document summarizing recent supervisory findings. This edition focuses on deposit accounts, furnishing practices under the Fair Credit Reporting Act (FCRA), and short-term small dollar lending, including Buy Now, Pay Later and paycheck advance products. Key findings include ongoing issues with unfair overdraft and non-sufficient funds fees, violations of FCRA related to identity theft and information accuracy, and UDAAP violations in new product categories. The report also notes that weak technology controls can contribute to legal violations and highlights significant refund amounts issued by mortgage originators ($115.6 million) and servicers ($4.2 million) for unlawful fees.

Financial institutions supervised by the CFPB should review these findings to ensure compliance with federal consumer financial laws. Particular attention should be paid to policies and procedures concerning deposit account fees, FCRA furnishing requirements, and the compliance risks associated with new lending products like BNPL and paycheck advances. The CFPB anticipates reporting on further refund issuances in upcoming editions, indicating continued scrutiny in these areas. Failure to address these supervisory findings could lead to enforcement actions and penalties.