Written by Steve Van Beek
The CFPB recently reiterated their focus on financial products offered to students. A brief discussion of two current efforts is below.
CFPB Inquiry into Campus Products. In late January, the CFPB launched an inquiry into the financial products marketed to students through colleges and universities. If your credit union has a relationship with a local college or university (or if you CU is sponsored by one!), be sure to keep an eye on this issue.
CFPB Focusing on Private Student Loans. The CFPB has not been shy when indicating they will be focusing heavily on private student loans. If your credit union makes private student loans, be sure to track the CFPB’s actions and ensure you are ready for future changes. On February 21, the CFPB penned two blog posts on student loans. The first looked at student debt and schools. The second was titled “Help Stop the Student Debt Domino Effect.” The CFPB also announced a new Notice and Request for Information on the student loan market. NAFCU’s Regulatory Affairs team will be providing a Regulatory Alert on this request for information and will also be drafting a comment letter to the CFPB.
Free UDAP Webinar. On March 5, The Philadelphia Federal Reserve’s Consumer Compliance Outlook will feature a free webinar on UDAP - Analysis, Examinations, Case Studies, and Emerging Risks. The webinar will look at:
- Consumer Financial Protection Bureau (CFPB) UDAAP and Federal Reserve Bank UDAP legal authorities
- UDAP legal analysis and examination procedures
- UDAP and bank holding company risk
- Case studies and emerging areas of risk
- Recommendations for implementing an effective UDAP compliance program
The webinar will start at 2:00 p.m. EST on March 5th. With the CFPB’s future actions in this area unknown, be sure to tune in.