All in FCRA

CFPB Sues Snap Finance for Deceiving Consumers and Making False Threats

Adam Witmer
Regulatory Update, FCRA, Regulation E, Regulation Z

On July 19, 2023, the CFPB sued lease-to-own finance company Snap Finance for deceiving consumers, obscuring the terms of its financing agreements, and making false threats. According to the CFPB, Snap Finance’s practices violate the Consumer Financial Protection Act, the Truth in Lending Act, the Electronic Fund Transfer Act, and the Fair Credit Reporting Act. The CFPB is seeking monetary relief for consumers, an end to Snap Finance’s illegal practices, and a civil money penalty.

CFPB Fines U.S. Bank $37.5 Million for Illegal Data Exploitation

Adam Witmer
FCRA, Regulatory Update

On July 28, 2022, the CFPB took action against U.S. Bank for illegally accessing its customers’ credit reports and opening checking and savings accounts, credit cards, and lines of credit without customers’ permission. According to the CFPB, U.S. Bank pressured and incentivized its employees to sell multiple products and services to its customers leading to employees unlawfully accessing customers’ credit reports and sensitive personal data to apply for and open unauthorized accounts.

CFPB Issues FCRA and Regulation V Human Trafficking Final Rule

Adam Witmer
Regulatory Update, FCRA

On June 23, 2022, the CFPB issued a final rule to help survivors avoid some of the financial consequences of human trafficking. Through the final rule, the CFPB has established a method for survivors of trafficking to submit documentation to credit reporting companies that identifies any adverse item of information that resulted from human trafficking. The rule prohibits credit reporting companies from providing a report containing the adverse items of information.

VIDEO: Inquiry as a Factor on Adverse Action Notices

VIDEO: Inquiry as a Factor on Adverse Action Notices

Adam Witmer
FCRA, Regulation B

In this Compliance Clip (video), Adam answers a unique question about listing inquiries as a factor in the adverse action notices. Specifically, the question is whether or not creditors are required to include the number of inquiries in the list of factors affecting the credit score if it is the fifth key factor. The answer to this question will come from the FCRA and Regulation B, but specifically from the preamble to the July 15, 2011 Regulation B final rule. A transcript of this video is now available.

CFPB Reminds Creditors of the No Surprises Act

Adam Witmer
Regulatory Update, FCRA

On 1/13/22, the CFPB released a bulletin reminding debt collectors and credit bureaus of their legal obligations in light of the No Surprises Act, which protects consumers from certain unexpected medical bills. The bulletin advises credit bureaus that the accuracy and dispute obligations imposed by the FCRA apply with respect to debts stemming from charges that exceed the amount permitted by the No Surprises Act.

TD Bank Fined for Overdraft and FCRA Violations

Adam Witmer
FCRA, Regulatory Update, UDAAP

On 8/20/2020, the CFPB announced a settlement with TD Bank regarding its marketing and sale of its optional overdraft service, referred to by the as Debit Card Advance (DCA). In addition to the issues with their overdraft practices, the CFPB also found that “TD Bank violated FCRA and Regulation V by failing to establish and implement reasonable written policies and procedures concerning the accuracy and integrity of consumer-account information it furnished to two nationwide specialty consumer reporting agencies.” The consent order requires TD Bank to provide an estimated $97 million in restitution to about 1.42 million consumers and to pay a civil money penalty of $25 million.

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