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CFPB warns financial companies about sales incentives

Joe Mont | December 1, 2016

Amid continuing fallout over a scandal that saw Wells Fargo employees opening unauthorized accounts and credit cards to meet sales quotas and incentives, the Consumer Financial Protection Bureau is warning others in the financial world to be leery of similar initiatives.

Banking regulators are currently reviewing sales practices throughout the industry in response to the Wells Fargo revelations.

 “The Bureau acknowledges that incentives have been common across many economic sectors, including the market for consumer financial products and services. When properly implemented and monitored, reasonable incentives can benefit all stakeholders and the financial marketplace as a whole,” the bulletin says. The flipside: “Tying bonuses or employment status to unrealistic sales goals or to...

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