CFPB Oversight

SCRA Enforcement at an All-Time High

By | CFPB Oversight, SCRA Compliance | No Comments

Our nation’s military forces are devoted to a life of service, protecting our families and our country. Why do them a disservice? The Service Members Civil Relief Act (SCRA) is the federal law that protects our service members against civil actions (ie: lawsuits) that may affect their legal rights while on active duty. SCRA compliance for any organization is not an elective course of action. It is critical to the success of your company.

Mortgage Compliance Magazine covers the general five questions regarding SCRA, but as a quick overview, the law protects against installment contracts, credit card, mortgage and auto interest rates, mortgage foreclosure, car repossession and civil court proceedings. Before executing civil actions, companies have to follow compliance rules to ensure that the client isn’t protected by this federal law. Read More

If the CFPB is the new Sheriff, then Creditors are the Deputy

By | CFPB Oversight, Compliance Training, Debt Collection | No Comments

Since the Consumer Financial Protection Bureau was formed in 2011, there has been a near continuous discussion as to their potential impact on the accounts receivable management industry. Over the past several months the CFPB’s presence has been steadily increasing through onsite audits and multiple publications for the general public(prohibited debt collection practices and setting strict guidelines on how debt collectors may reference a consumer’s credit report). Focusing on the largest organizations within the industry first, one could say while the CFPB is the acting sheriff, they’ve indirectly made the creditors their deputies. Read More

SCRA Compliance is Not Optional!

By | CFPB Oversight, Process Improvement, SCRA Compliance | No Comments

Increasing Scrutiny for SCRA Compliance Violations

Financial services providers across the country are scrambling to avoid being caught in the fallout over the crackdown on violations of the Servicemembers Civil Relief Act (SCRA).   Recent fines levied against several credit issuers are an early sign of the increased scrutiny now being focused on everyone from lenders and loan service providers to debt collectors and affiliated agencies.

The SCRA is designed, in part, to reduce interest rates on credit and services and provide protection for members of the military who on active duty. The Consumer Financial Protection Bureau (CFPB), Department of Justice (DOJ) and Federal Deposit Insurance Corporation (FDIC) and other agencies continue to unearth thousands of violations and issue severe and costly penalties against companies found to be in violation of the Act.  Just this month, there was a report indicating certain retailers have filed debt collection suits against active duty servicemembers who are unable to defend themselves while serving on active duty.  As a result, Senators are now calling on the CFPB to investigate ‘Aggressive Debt Collection’actions against military servicemembers.  Read More