When you deposit your money into a banking app, it’s important to know who is holding your money and whether it’s safe. These days, many financial technology companies (also known as fintechs) create apps and partner with banks to provide banking services. That means there could be several layers of red tape between you and your money if something goes wrong. Some popular fintech banking apps are Chime, Cash App, Albert, and MoneyLion.
In one of the first tests of the implications of the Jarkesy decision for other federal regulatory agencies, an individual accused by the FDIC of participating in fraudulent loan activity is asking a federal judge to dismiss the administrative proceeding the FDIC brought against him, contending, among other things, that he is being denied his right to a jury trial.
For years, when assessing third-party collection vendor performance, I have tried to come up with a better word than “audit”. Much of the time, the audit word conjures up a negative impression, and I think of the audit as a tool for communication and effectiveness between the vendor, in this case, the collection agency, and the client. By verifying that performance aligns with contract expectations, and work effort meets expectations, we can foster trust and build long-term connections with our vendors.
The Consumer Financial Protection Bureau (CFPB) today took action against repeat offender New Day Financial (NewDay USA) for deceiving active duty servicemembers and veterans seeking cash-out refinance loans. The CFPB found that NewDay USA gave misleading and incomplete cost comparisons to borrowers refinancing in North Carolina, Maine, and Minnesota, which made the company’s loans appear less expensive relative to their existing mortgages.
The Federal Deposit Insurance Corporation (FDIC) today released a list of orders of administrative enforcement actions taken against banks and individuals in July 2024. There are no administrative hearings scheduled for September 2024. The FDIC issued 6 safety and soundness orders in July 2024, and one Amended Notice of Charges of Hearing issued in June 2024. The administrative enforcement actions in those orders consisted of two consent orders and four prohibition orders, and one Amended Notice of Charges of Hearing (Amended Notice) issued in June 2024.
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