The Consumer Financial Protection Bureau CFPB
CFPB Issues Fine to Auto Lender for Violating Consent Order
The Consumer Financial Protection Bureau (CFPB) imposed a fine against Security National Automotive Acceptance Company (SNAAC), an auto lender specializing in loans to military servicemembers, for violating a Bureau consent order. In 2015, the CFPB ordered SNAAC to pay a civil penalty due to illegal debt collection tactics. SNAAC violated the 2015 order by failing to provide more than $1 million in refunds and credits. This error has affected more than 1,000 consumers. The consent order requires SNAAC to pay the money it owes to those consumers and pay an additional $1.25 million penalty.
On April 20th, the CFPB released a final rule pushing back the general effective date of their rule governing prepaid accounts. The rule is now due to take effect on April 1st, 2018.
Financial Crimes Enforcement Network (FinCEN)
Western Union Agrees to pay $184 Million in Penalties.
Western Union financial Services, Inc. (WUFSI) has been found to have willfully violated the Bank Secrecy Act’s Anti-Money Laundering requirements prior to 2012 by failing to maintain a risk-based AML program, and by failing to promptly file suspicious activity reports. WUFSI consented to FinCEN’s findings in recognition of their past AML shortcomings and have agreed to a number of increased security measures in an effort to prove the company’s commitment to AML.
The FDIC Advisory Committee on Economic Inclusion (ComE-IN) met on Thursday April 27th to discuss possible measures banks may consider to reach underserved populations, such as “collaborations with community-based organizations; resources for affordable mortgage lending; and new research that may be used to more effectively target resources to promote broader access to bank branches in underserved neighborhoods.”
Other Regulatory Bodies
FINRA
Proposed Rule Change to Amend the Customer And Industry Codes to Expedite List Selection in Arbitration
The Financial Industry Regulatory Authority, Inc. (“FINRA”) announced earlier this month that the National Adjudicatory Council (NAC) revised the Sanction Guidelines to include a new section on coverage for financial exploitation of seniors and other vulnerable individuals. It also includes three new guidelines relating to systemic supervisory failures, borrowing and lending arrangements, and short interest reporting.