All in Regulatory Update

FinCEN Joins International Task Force to Disrupt Financial Flows to Hamas

Adam Witmer
Regulatory Update, BSA

On November 27, 2023, FinCEN and twelve other financial intelligence units (FIUs) issued a public statement recognizing the formation of a task force of like-minded FIUs who aim to strengthen efforts to disrupt international financial flows to Hamas and other terrorist organizations. Counter Terrorist Financing Taskforce – Israel (CTFTI) was established immediately following the brutal terror attacks by Hamas against Israel on October 7, 2023.

FinCEN Issues Alert on COVID-19 Employee Retention Credit Fraud

Adam Witmer
Regulatory Update, BSA

On November 22, 2023, FinCEN, in close coordination with the Internal Revenue Service Criminal Investigation (CI), issued an alert to financial institutions on fraud schemes related to the COVID-19 Employee Retention Credit (ERC). The alert provides an overview of typologies associated with ERC fraud and scams, highlights select red flags to assist financial institutions in identifying and reporting suspicious activity and reminds financial institutions of their reporting requirements under the BSA.

CFPB Fines Toyota Motor Credit for Illegal Lending and Credit Reporting Misconduct

Adam Witmer
Regulatory Update, UDAAP

On November 20, 2023, the CFPB ordered Toyota Motor Credit Corporation to pay $60 million in consumer redress and penalties for operating an illegal scheme to prevent borrowers from cancelling product bundles that increased their monthly car loan payments. The CFPB alleges that the company withheld refunds or refunded incorrect amounts on the bundled products and knowingly tarnished consumers’ credit reports with false information.

CFPB and 11 States Order Prehired to Pay Students for Illegal Lending Practices

Adam Witmer
Regulatory Update

On November 20, 2023, the CFPB and 11 states announced that Prehired will provide more than $30 million in relief to student borrowers for making false promises of job placement, trapping students with “income share” loans that violated the law, and resorting to abusive debt collection practices when borrowers could not pay. In July this year, the CFPB and several state attorneys general and a state regulator filed a complaint against Prehired for deceptive marketing and debt collection practices.

CFPB Fines Enova For Repeat Violations

Adam Witmer
Regulatory Update, UDAAP

On November 15, 2023, the CFPB ordered online lender Enova International Inc. to pay a $15 million penalty for widespread illegal conduct including withdrawing funds from customers’ bank accounts without their permission, making deceptive statements about loans, and cancelling loan extensions. In 2019, Enova paid a $3.2 million penalty to the CFPB and was ordered to cease its illegal conduct.

CFPB Distributes Relief to Student Loan Debt-Relief Scam Victims

Adam Witmer
Regulatory Update

On November 13, 2023, the CFPB announced that 845 former Student Aid Institute (SAI) consumers will receive checks in the mail in response to a lawsuit filed against Frank Ronald Gebase Jr., the founder, owner, and operator of Processingstudentloans, a student loan debt-relief company that illegally withdrew hundreds of thousands of dollars from the bank accounts of former SAI consumers without their authorization. The total distribution amount is $240,994.00, and the money will come from the CFPB’s victims relief fund.

Load More