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YOUR DREAMS YOUR DREAMS

CONSUMERS:

WHY WHERE YOU SPEND MATTERS!

Trade Financing Matters welcomes acts. They’re trying to preserve the
this guest post from Susan Joseph, relationship and argue it would be
a former General Counsel of a bad business for them to behave
start-up peer lending financial badly.
services/tech disrupter. Of course, some banks have
The Consumer Financial already engaged in some of these
Protection Bureau (CFPB) was bad acts, so Consumer groups
created by the Dodd-Frank Act and think the CFPB should regulate the
is a US government agency whose entire credit life cycle from debt
mandate is to protect consumers buyers, collectors, and first party
of financial services and creditors to banks collecting both
products. This means there are for themselves and others to “even
strong federal rules that protect the playing field.” Expect a big
consumers. It also means there is fight here.
federal enforcement if you break Payday Lending: If this
those rules, and that enforcement part of the ecosystem is
can result in injunctions that regulated, it will affect
shut your business or fines and the banks, nonbanks
penalties. and online lenders
The CFPB has a broad reach because the CFPB
and can specifically make rules can regulate all those
effecting banks, payday lenders, parties. Marketplace
mortgage servicers, debt collectors lenders offering this
and other financial companies and product should keep
can regulate virtual currencies. a close eye on this.
Since its creation, it has collected If, for example, the
millions of dollars in restitution amount of times
and penalties and is considered a a consumer can
vigilant if not aggressive consumer draw credit within a
advocate. If the CFPB determines certain timeframe
there is a violation, it can bring is limited, the
an enforcement action-the type platform algorithms
you hope you never see in the and pricing
headlines. will have to be
An article from January 9 adjusted and
National Mortgage News has perhaps entire
some telling predictions about the business model
CFPB’s agenda. will have to
Debt Collection: Significant evolve as
rules will likely be adopted to well.
address debt collection. How far
will they go? The Banks are hoping
to escape the rules and claim their
unique relationship as the first
party with the credit and deposit
relationship deters them from
engaging in bad debt collection