Banking Dive’s Post

In 2022, Consumer Financial Protection Bureau received just over 200,000 complaints concerning inaccurate information in credit reports. In 2023, that number doubled to over 400,000 complaints! To date, the CFPB has already received over 100,000 complaints this year alone. If this trend continues, we expect to see over 600,000 complaints made to the CFPB this year for credit report errors! What's up with that credit reporting agencies? https://lnkd.in/g4M7mNCH

Errors on credit reports are increasingly common and can be challenging to resolve. As consumer complaints about credit report issues rise dramatically, here’s how to fix them. #WestPacWealth #financialplanning #personalfinance #wealthmanagement https://lnkd.in/gkKZRpGE

Errors on credit reports are increasingly common and can be challenging to resolve. As consumer complaints about credit report issues rise dramatically, here’s how to fix them. #WestPacWealth #financialplanning #personalfinance #wealthmanagement https://lnkd.in/g7aGxPb3

On September 11, the U.S. Consumer Financial Protection Bureau (CFPB) has ordered TD Bank to pay $28 million for its unlawful practices that jeopardized the credit, housing, and employment prospects of tens of thousands of consumers. This penalty includes $7.76 million in redress to affected consumers and a $20 million civil money penalty. For several years, TD Bank provided inaccurate and negative information about its customers to consumer reporting companies, including errors related to credit card delinquencies and bankruptcies. The bank also shared information about accounts it knew or suspected were fraudulently opened, further compounding the harm to its customers. CFPB Director Rohit Chopra stated, “TD Bank illegally tarnished consumer reports with fraudulent information and failed to take swift action to correct its errors, prioritizing its expansion over its customers' rights.” Key Violations: - Inaccurate credit card reporting: TD Bank sent false data about credit card delinquencies and closed accounts to consumer reporting companies. - Sharing fraudulent information: The bank continued to share derogatory information about accounts it knew were fraudulently opened. - Failure to investigate consumer disputes: TD Bank neglected to conduct reasonable investigations into consumer disputes and failed to inform consumers about the resolution of their disputes. The CFPB's enforcement action holds TD Bank accountable under the Fair Credit Reporting Act (FCRA) and the Consumer Financial Protection Act (CFPA). This marks the CFPB’s second enforcement action against TD Bank, following a 2020 order that required the bank to pay $97 million in restitution for illegal overdraft practices. Stay updated with the latest in financial regulations and consumer protection news! Follow Global Regulatory Insights for more important updates. Credit: TDBANK #ConsumerProtection #CFPB #FinancialRegulation #CreditReporting #TDbank #GRI #BankingCompliance #FairCreditReportingAct #ConsumerRights #Banking

Errors on credit reports are increasingly common and can be challenging to resolve. As consumer complaints about credit report issues rise dramatically, here’s how to fix them. #WestPacWealth #financialplanning #personalfinance #wealthmanagement https://lnkd.in/guNHYZKf

The Consumer Financial Protection Bureau issued a consent order today against a large depository institution related to FCRA violations for their credit card and deposit portfolios. While this consent order covers a variety of issues and products, many of the findings were centered around furnishing inaccurate information and failures to conduct reasonable and timely investigations of disputes. My other key takeaways include the following: ✔ In multiple instances, the CFPB mentions the requirement to “promptly” correct or update inaccurately furnished information. Depending on the nature of the furnishing issue, volume of impacted accounts, and systems involved, correcting inaccurately furnished information can be a significant undertaking involving multiple stakeholders but should be prioritized given the CFPB’s continued scrutiny in this area. ✔ Under Paragraph 80, the CFPB indicates that the institution had no internal controls in place to validate the accuracy of the data furnished. While the CFPB does not specify the type of controls that should have been implemented, there are a range of tools available to identify many of the issues called out by the CFPB here prior to furnishing. In previous CFPB consent orders, this level of pre-transmission quality control was called out as an explicit requirement. ✔ Deposit furnishing and dispute issues were called out in this consent order and because these products do not use the same standard data formats as credit products, it can be more challenging for institutions to develop processes and controls around them.

On March 29, 2024, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”), issued a “notice and request for information and comment” (“RFI”) seeking comments on the Bank Secrecy Act’s (“BSA”) customer identification program (“CIP”) rule. The CIP rule requires U.S. banks to collect a taxpayer identification number (“TIN”) from a U.S. person before opening a new account for that person. For individuals, this TIN will be a Social Security number (“SSN”). In particular, the RFI seeks comments on the possibility of allowing banks to collect only part of an SSN (e.g., the last four digits) directly from their customers, and then using “reputable third-party sources,” such as credit bureaus, to obtain the full SSN before account opening. Crowell & Moring - Caroline Brown - Nicole Sayegh Succar - Carlton Greene - Anand Sithian / Financial Crimes Enforcement Network, US Treasury #kyc #cip #moneylaundering #financialcrime

Errors on credit reports are increasingly common and can be challenging to resolve. As consumer complaints about credit report issues rise dramatically, here’s how to fix them. #WestPacWealth #financialplanning #personalfinance #wealthmanagement https://lnkd.in/g-97HvNp

Errors on credit reports are increasingly common and can be challenging to resolve. As consumer complaints about credit report issues rise dramatically, here’s how to fix them. #WestPacWealth #financialplanning #personalfinance #wealthmanagement https://lnkd.in/egZrwaap

🙌 Many thanks to the Auto Fin Journal for the covering our latest partnership with Affinity Federal Credit Union. We are committed to continuing our work to make the auto lending process more secure and efficient. Full article at the link ⬇️ https://hubs.la/Q02Lb2QJ0 Cherokee Media Group #creditunions #fraudprevention #riskmanagement