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The Roundup: OCC Announces Enforcement Actions, $59 Million in Monetary Fines for Marketing Non-Compliance, and the $8 Late Fee Edges Toward Reality

April 24, 2024
Regulatory Compliance Roundup - 4/24/24

Welcome to the PerformLine Regulatory Compliance Roundup, home of the latest news, articles, and reports from our industry, curated for you. Let’s get into it.

In this edition: The OCC announces enforcement actions for April 2024, action was taken against A school for false claims and hidden loans, CFPB’s shakeup to supercharge fintech, big bank cops, CFPB $8 late fee cap edges toward reality, working together to protect consumers: FTC collaboration with the state AGs, and initial observations regarding advisers act marketing rule compliance.

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OCC Announces Enforcement Actions for April 2024

The Office of the Comptroller of the Currency (OCC) announced enforcement actions for April 2024, addressing unsafe or unsound practices and violations by national banks, federal savings associations, and individuals. Actions included formal agreements and cease and desist orders. Additionally, prohibition orders and civil money penalties were issued against individuals for misconduct, including concealing backlogs, misappropriating funds, and participating in fraudulent activities.

Action Taken Against School for False Claims & Hidden Loans

The CFPB has taken action against a coding boot camp and its CEO for deceiving students about loan costs and job placement rates. The company misrepresented its “income share” agreements as non-loan, risk-free options while concealing finance charges and default risks. The company also falsely advertised high job-placement rates.

Significant Stat: $59 Million: The total dollar amount in monetary fines for marketing compliance and regulatory enforcement actions in Q1 2024. Read more

CFPB’s Shakeup to Supercharge Fintech, Big Bank Cop

The CFPB is undergoing a significant internal restructuring to enhance its oversight of fintech firms and large banks. This reorganization will allow the CFPB’s enforcement and supervision teams to report directly to Director Rohit Chopra, aiming to streamline the agency’s response to market developments. This change is part of a broader effort to increase the CFPB’s efficiency in regulating various financial companies, particularly nonbank lenders and financial technology firms​.

$8 Late Fee Cap Edges Toward Reality

Despite resistance from industry groups, the CFPB is moving closer to implementing an $8 cap on credit card late fees. This proposed rule aims to reduce excessive consumer fees, aligning with the CFPB’s broader effort to eliminate “junk fees.” The cap would significantly lower the maximum allowable late fee, impacting the revenue models of credit card issuers charging higher fees. The CFPB’s action reflects its commitment to enhancing consumer protection in the financial sector.

Working Together to Protect Consumers: FTC Collaboration with the State AG’s

This report addresses the FTC’s efforts with State Attorneys General to prevent, publicize, and penalize frauds and scams being perpetrated on individuals in the United States.

Initial Observations Regarding Advisers Act Marketing Rule Compliance

The Risk Alert shares preliminary observations from examinations of investment advisers’ compliance with the Marketing Rule. The Division continues to focus on Marketing Rule compliance.

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