The Consumer Financial Protection Bureau (CFPB) today filed a proposed order that would require Freedom Mortgage Corporation to pay a $3.95 million penalty for submitting error-riddled mortgage loan data to federal regulators.
Several years ago, the Consumer Financial Protection Bureau (CFPB) took a big step to protect consumers from unfair and abusive practices in the payday and installment lending industry. After a thorough review of the market, the CFPB discovered a troubling trend: lenders repeatedly attempting to withdraw money from consumers’ accounts even after the accounts were empty. One particularly shocking example revealed a lender making 11 failed withdrawal attempts in a single day.
In a blog post published at the end of last week, the CFPB announced that its payday lending rule (Rule) would go into effect on March 30, 2025. Because the Rule’s ability to pay requirements were rescinded, the only remaining provisions of the Rule are its “payment provisions.”
On June 11, 2024, Truist Bank (“Truist”) filed a notice of data breach with the Attorney General of Massachusetts after discovering that an unauthorized party was able to access the company’s computer network. In this notice, Truist explains that the incident resulted in an unauthorized party being able to access consumers’ sensitive information, which includes their names, dates of birth, financial account numbers, loan transaction amounts, and loan balances. Upon completing its investigation, Truist began sending out data breach notification letters to all individuals whose information was affected by the recent data security incident.
The average credit union member is 53 years old. Reasonably affluent, well traveled down the journey of life’s financial goals — and well aware of the personalized and community approach of the credit union (CU) itself. But as is the case with any business, credit unions and community banks need to expand their accountholder base and gain ground with younger consumers who either are unaware of their local CUs, or may equate them with relatively staid business models.
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