CFPB Issues Bulletin on Sales and Production Incentives

On November 28th the Consumer Financial Protection Bureau (CFPB) issued a bulletin warning financial companies, including banks and credit unions, of the pitfalls associated with employee and service provider incentives programs.  Incentive programs, if not properly managed, can lead to unauthorized account opening, deceptive sales tactics, steering consumers to less favorable products and unauthorized opt-ins to overdraft services.  The bulletin provides several action steps for financial companies to take to avoid incentive programs causing consumer abuse and violations of laws and regulations.

CFPB Compliance Bulletin 2016-03

  • 218-790-1086

John Zasada is a principal with CLA and leads the firm’s financial institution regulatory compliance practice. He assists banks and credit unions nationwide in establishing regulatory compliance programs, conducting compliance testing, training staff on regulations, and performing website compliance assessments. In addition, John is a frequent speaker at industry conferences and state associations. Prior to joining CLA, he served as managing director at a top-10 accounting firm and as the compliance officer of a large financial institution, where he developed and implemented its first regulatory compliance program.

Comments

the Consumer Financial Protection Bureau (CFPB) is always create warning to save the financial market. Because they know how to things keep on track. All financial institutions and banks don’t care the rules if there should not governing body. They always follow the rules when they know that someone is watching them.

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