Consumer Financial Services Outlook 2018
Venable's Consumer Financial Services practice hosted a webinar that reviewed the current state of federal and state consumer financial protection law and policy and outlined what companies need to know about what's ahead. The speakers shared their experiences from the front lines and offered strategies to help navigate the evolving legal and regulatory landscape.
CFPB to Reexamine Payday Rule, CID Process, and Mortgage Rules
Barely two months have passed since the November 24, 2017 resignation of Richard Cordray as director of the CFPB, but important changes to the agency and its approaches to rulemaking, supervision, and enforcement are already under way. These changes will likely shape the Bureau’s role in regulating consumer financial services for the foreseeable future. The CFPB made two announcements this week that reemphasized a swing toward a more collaborative and less confrontational relationship with consumer financial services businesses. First, the Bureau plans to reconsider the controversial Payday, Vehicle Title, and Certain High-Cost Installment Loans Rule ("Payday Rule"). Second, the Bureau intends to seek public input via RFIs on supervision, enforcement, and rulemaking initiatives moving forward.
Big Data and Fintech: Avoiding Fair Lending and UDAP Pitfalls
Using alternative data about online lending, computer-assisted underwriting, and artificial intelligence to provide consumer financial services can lead to unintended fair lending and UDAP risks.
"Keeping Fintech Fair: Thinking About Fair Lending and UDAP Risks," a detailed primer by Carol A. Evans, published by Consumer Compliance Outlook, details general guideposts for evaluating UDAP and fair lending risks related to Fintech. Using highlights from CFPB, FTC, banking agency, and DOJ enforcement actions, "Keeping Fintech Fair" showcases fair lending and UDAP concepts to "help guide thinking early on in the business development process."
The Keys to Managing Regulatory Change
As the adage goes, the only thing that is constant is change—just ask an attorney or compliance professional servicing the accounts receivables industry. The last decade has ushered in profound changes on the technological, economic, and regulatory/legal fronts, leaving in their wake a reshaped landscape, with only those companies that are able to absorb and adapt to change still standing.