Jun 7

Recent Compliance Issues: 5/15/15 – 5/28/15


1. On Tuesday, May 19, PayPal announced that it has agreed to a $25 million settlement with the Consumer Financial Protection Bureau (CFPB) for allegations that it essentially forced consumers to use its on-line credit product. The CFPB characterized PayPal’s practices as deceptive and abusive, the first such settlement under the “abusive” prong of the “Unfair, Deceptive, and Abusive Acts or Practices” (UDAAP) regulation within the Dodd-Frank Act. If your firm is involved in on-line lending, let our experienced, former, Federal regulators review your disclosures and programs for compliance with UDAAP standards.