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
CLA’s financial institution regulatory compliance team assists banks and credit unions nationwide in establishing regulatory compliance programs, conducting compliance testing, and training staff on regulations. Justin Robinson is a member of CLA’s regulatory compliance team and can be reached at justin.robinson@CLAconnect.com.
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.