CFPB Takes Action on Consumer Refunds Withholding
Neobanks
Compliance Operations
May 31, 2024
The Case
The Consumer Financial Protection Bureau ("CFPB") issued a Consent Order against a San Francisco-based fintech for allegedly withholding refunds beyond the 14-day window for closed accounts established in the Company's agreement with account holders.
Why Does This Matter?
Under the CFPB’s order, the fintech must pay at least $1.3 million in redress and over $3 million in penalties, as well as provide timely refunds going forward by implementing strict compliance controls.
The ruling highlights the regulator’s focus on several key consumer compliance regulations:
Electronic Fund Transfer Act (EFTA);
Unfair, Deceptive, or Abusive Acts or Practices (UDAAP);
Regulation E
InnReg's Experience
Since its founding in 2013, InnReg has developed deep expertise in consumer compliance, including EFTA, UDAAP, and Regulation E. Whether you are a regulated entity or not, we partner with you to identify your current exposure and develop a remediation strategy. Our partnership will equip you with a tailored compliance program to help you mitigate your specific risks.
Learn More About This Topic
For additional details, read how InnReg’s Fintech Compliance checklist can help your fintech build best practices to meet evolving regulatory requirements.
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