- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2024-02-26T21:01:00
The Consumer Financial Protection Bureau (CFPB) announced its first use of a dormant legal provision allowing it to establish supervisory authority over more nonbank financial companies.
Installment lender World Acceptance Corp. was subject to the agency’s first supervisory designation order announced Friday. The CFPB said in a press release it published the order to “provide transparency about how it assesses risks using consumer complaints and other factors.”
In April 2022, the CFPB warned it was looking to increase its examination authority over nonbanks to “level the playing field” between banks and them. The agency’s director, Rohit Chopra, cited the rapid growth of these companies as reason to ensure proper supervision and prevent harm to consumers.
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The Supreme Court rejected a claim that the Consumer Financial Protection Bureau’s funding mechanism is unconstitutional, removing a legal challenge that had the potential to overturn all the agency’s regulations and enforcement actions.
The Consumer Financial Protection Bureau ordered Chime Financial to pay $3.25 million in penalties for allegedly delaying consumer refunds past its promised 14-day timeframe.
Digital wallet company PayPal disclosed it won’t face enforcement regarding a Consumer Financial Protection Bureau probe into its subsidiary Venmo.
Capital One promised very high interest rates on millions of savings accounts but the bank didn’t deliver, losing customers more than $2 billion, the Consumer Financial Protection Bureau alleged.
Robinhood, a disruptive force in the market for Main Street investors but also a serial offender of securities laws, will pay a total of $45 million to settle numerous violations of SEC rules and regulations by two of its broker-dealers.
A broker-dealer subsidiary of Toronto-based BMO Financial Group will pay nearly $41 million in penalties to the Securities and Exchange Commission to settle allegations that its traders issued misleading disclosures on bonds for three years, causing $19 million in harm to its customers.
