CFPB Issues Guidelines on Investigative Practices by Consumer Reporting Agencies | Goodwin | So Good News


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CFPB Issues Guidelines for Investigations by Consumer Reporting Agency

On November 10, the CFPB issued a Circular Protection Circular (Circular) confirming that consumer reporting agencies (CRAs) and information providers must investigate all disputes that are not frivolous or unnecessary, and will not limit the right of consumers to dispute in favor of a particular type. or attachment (for example, physical form, copy of police report) beyond what the laws and regulations allow. The Circular also confirms that the CRA must provide “all information” to the provider of “all necessary” information about the dispute that the CRA receives from consumers, and that the advocates of the protection of the state and the government can bring complaints to companies that fail to conduct an adequate investigation and resolve the consumer. say the arguments.

“One wrong information on a person’s credit report can have devastating consequences that follow the consumer for years. Companies that fail to resolve consumer disputes in accordance with the law can face serious problems.”
– CFPB Director Rohit Chopra

CFPB Finalizes Rule Regarding Major Nonbank Supervisory Decisions

On November 10, the CFPB finalized changes to its non-banking regulations, which allow the CFPB to publicly publish its final risk-based decisions and rulemakings to regulate certain non-banking entities. In response to public comments, the final rule provides that the CFPB will not publish information that would fall within two sections of the Freedom of Information Act that protect confidential business information and personal privacy. The CFPB may also withhold information from its rulings and regulations for good cause. The final rule also extends the period in which the non-bank entity must express its opinion on whether the rule should be made public from 7 to 10 business days. This change to the final rule is consistent with the CFPB’s initial decision to extend oversight to a non-bank entity and does not affect the confidentiality of any subsequent investigation or any other aspect of the process.

CFPB Publishes Bulletin Analyzing Growing Crypto-Asset Complaints

On November 10, the CFPB released a statement of complaint, showing a significant increase in complaints received by the CFPB related to crypto-assets. Consumer complaints are focused on scams, fraud, theft, theft, and lost storage as well as issues related to transactions, transfers between exchanges, access to funds, technical issues with the platform or platform failure, issues with identity verification, security, frozen accounts , and poor customer service. In the article, the CFPB acknowledged some crypto-asset risks, including: love fraud and “pig killing” (fraudsters spend time to gain the victim’s trust, trust, love, and play on the victim’s mind in order to get the victim’s wealth); fraudulent activities; difficulty getting a refund in the event of account hacking or fraud; the perceived social risk of blockchain technology; and the volatility of commodity prices that fluctuate. The CFPB advised consumers to be on the lookout for common scams and to report suspicious FDIC insurance claims and other complaints to the CFPB.

FINRA Urges Firms to Focus on Better Planning

FINRA recently issued Regulatory Notice 22-23, providing guidance on formal and representative succession planning, including relevant FINRA rules and procedures and questions that firms should consider when developing and implementing their succession plans. FINRA’s focus on succession planning is driven by industry demographics, which indicate that approximately 30% of registered representatives are approaching retirement age, and the impact of the COVID-19 pandemic.

Read the client alert to learn more about the steps companies and their executives should consider when creating their succession plans.

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