In this episode of his "Clearly Conspicuous" podcast series, "CFPB Warns of Manipulation and Dark Patterns in Digital Comparison Shopping Tools," consumer protection attorney Anthony DiResta discusses the Consumer Financial Protection Bureau's (CFPB) circular warning about comparison shopping operators potentially violating federal law.
The past four years have shown us that industry leaders should always keep an eye out for the unexpected. However, it should also remind us that with a bit of flexibility and resilience, no headwinds are too strong to navigate — including a global pandemic, tumultuous election cycles and the economic uncertainties that followed. In fact, sometimes these unprecedented events can yield positive momentum and opportunities for innovation.
The Consumer Financial Protection Bureau (CFPB) has imposed a $2.25 million civil penalty on New Day Financial, operating under the brand NewDay USA, for deceiving veterans and active-duty servicemembers with misleading cost comparisons on cash-out refinance loans. The CFPB found that NewDay USA made these loans appear less expensive than they were, particularly in North Carolina, Maine, and Minnesota, by omitting certain costs in their comparisons. This led many borrowers to believe they were getting a better deal than they actually were.
The CFPB announced the availability of its beta platform for the small business lending data collection rule pursuant to section 1071 of the Dodd-Frank Act.
It’s only natural for businesses and institutions to remain vigilant for the unexpected. Recent years have highlighted the market’s susceptibility to unforeseen events, from pandemics to geopolitical upheavals. As such, it’s prudent to evaluate the potential challenges and opportunities that unexpected events and wild cards might present to your organization.
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