|June 19, 2014|
Previously published on June 16, 2014
CFPB Begins to Study Mobile Banking
On June 11th, the CFPB announced the initiation of an inquiry into consumer issues presented by the use of mobile financial services. The CFPB issued a request for information (RFI) in order to aid its exploration of “how mobile technologies are impacting unbanked and underserved consumers with limited access to traditional banking systems.” According to a recent study by the Federal Reserve, an increasing number of people are using mobile banking services in order to carry out routine banking activities such as transferring money between accounts, monitoring account balances, and depositing checks. The CFPB’s RFI requests information on the following issues:
The deadline for submitting comments is September 9, 2014.
Enforcement Action Against Real Estate Firm for Alleged RESPA Violations
One June 12th, the CFPB entered into a consent order with a New Jersey title services company to settle allegations that the company paid illegal kickbacks for referrals. The CFPB alleged that the company violated the Real Estate Settlement and Practices Act (RESPA) by paying commissions to independent salespeople who referred title insurance business to the company. Section 8 of RESPA prohibits kickbacks and the payment of unearned fees in residential real estate transactions. Under the consent order, the company must pay a civil fine of $30,000.
1 See the request for information here. UP
2 See the consent order here. UP