CFPB Eyeing Checking Accounts


By @pymnts

The Consumer Financial Protection Bureau (CFPB) is looking hard at banks’ policies on opening consumer checking accounts, including the third-party databases they use, American Banker reported.

In an Oct. 8 forum on access to checking accounts, CFPB director Richard Cordray opened the session by raising issues about overdraft protections, how banks report and use credit scores and how they gauge a consumer’s credit risk. That seemed to signal that the CFPB could sweep checking and overdraft fees into its forthcoming rules on payday lenders.

CFPB’s Loan Report Attacks Lenders Rather Than Empowering Students

From: Forbes

 Carrie Sheffield

The Consumer Financial Protection Bureau’s (CFPB) recent annual student loan ombudsman report aims to help those falling behind with private lenders. However, its reactive approach would simply stifle flames rather than prevent their initial burst by proposing shortsighted policies that could lead vulnerable students to take on more debt.

CFPB Student Loan Ombudsman Rohit Chopra announced the report’s release with a dire warning: “This is something we’re taking very seriously, and we do not want to see a repeat of what happened in mortgages happen here.” The comparison is appropriate, but probably not in the way Chopra intended.

Higher Education Facing Scrutiny From CFPB

From: Subject to Inquiry

By Susan C. Rodriguez

Colleges, universities and anyone offering postsecondary education, take note: The Consumer Financial Protection Bureau (CFPB) continues to target alleged unfair and deceptive practices related to the student loan and financial aid process. A few weeks ago, the CFPB filed suit against Corinthian Colleges in U.S. District Court for the Northern District of Illinois, alleging violations of the Consumer Financial Protection Act of 2010 (CFPA) by:

induc[ing] students to enroll in its programs through false and misleading representations about its graduates’ career opportunities, including representations suggesting Corinthian would provide assistance in helping students find a job, and that students were likely to obtain a permanent job upon graduation.1

Car dealers resisting regulations on fees

From: Detoit Free Press

Nathan Bomey

The leader of the nation’s car dealers are fighting federal regulations that would restrict dealers ability to charge varying rates for higher risk loans.

“The government is trying to take away a customer’s right to get a discount,” Forrest McConnell, chairman of the National Automobile Dealers Association told the Automotive Press Association today. “The current system saves customers money, period.”

The Consumer Financial Protection Bureau, created in response to abuses by mortgage lenders, payday lenders and others leading up to the 2008 financial crisis, wants to eliminate dealers’ ability to tinker with in-house financing rates.

Banks fret over Wal-Mart’s foray into checking

From: The Hill

By Peter Schroeder

The banking industry is airing concerns about Wal-Mart’s bid to provide checking accounts.


The Consumer Bankers Association, of which Green Dot is a member, said the company should be “commended” for trying to expand banking services to people who may not have access to traditional resources. However, the group also emphasized that if Wal-Mart wants to get into the banking business, it should be treated like a bank.