The Shopper Monetary Safety Bureau (CFPB) on Wednesday (March 16) updated its supervisory operations to “higher shield households and communities from unlawful discrimination, together with in conditions the place truthful lending legal guidelines might not apply,” in line with a bureau press launch.
The CFPB “will scrutinize discriminatory conduct that violates the federal prohibition in opposition to unfair practices” at banks and corporations throughout the U.S. The CFPB “will intently look at monetary establishments’ decision-making in promoting, pricing, and different areas to make sure that firms are appropriately testing for and eliminating unlawful discrimination,” the press launch says.
“When an individual is denied entry to a checking account due to their faith or race, that is unambiguously unfair,” mentioned CFPB Director Rohit Chopra within the announcement. “We will probably be increasing our anti-discrimination efforts to fight discriminatory practices throughout the board in client finance.”
The CFPB additionally printed an up to date examination handbook at the moment for evaluating unfair, misleading and abusive acts and practices (UDAAPs) which notes that “discrimination might meet the factors for ‘unfairness’ by inflicting substantial hurt to shoppers that they can’t fairly keep away from, the place that hurt will not be outweighed by countervailing advantages to shoppers or competitors,” the discharge says.
“Shoppers could be harmed by discrimination no matter whether or not it’s intentional,” in line with the press launch. The CFPB “will look at for discrimination in all client finance markets, together with credit score, servicing, collections, client reporting, funds, remittances, and deposits,” it says.
On Tuesday (March 15), the Federal Commerce Fee (FTC) filed an administrative grievance in opposition to Digital Fee Programs for allegedly opening bank card processing service provider accounts for fictitious firms on behalf of a scammer, Cash Now Funding, maybe making a template for the CFPB.
The grievance alleges that Digital Fee Programs facilitated the scammers’ evasion by creating 43 completely different service provider accounts for fictitious firms on behalf of Cash Now Funding, permitting the scammers to run greater than $4.6 million in client bank card prices by way of these accounts.
Digital Fee Programs submitted a consent settlement in January to settle the matter, which the FTC has accepted, although it’s nonetheless open to public feedback. After the 30-day deadline for feedback, the FTC will resolve whether or not to make the proposed consent order last.