All in Regulation E

CFPB Issues Circular to Stop False Claims of 'Free' International Money Transfers

Adam Witmer
Regulatory Update, Regulation E

On March 27, 2024, the CFPB issued a circular warning remittance transfer providers that false advertising about the cost or speed of sending a remittance transfer can violate federal law. The circular highlights several marketing practices relating to sending international money transfers that may violate the Consumer Financial Protection Act’s (CFPA) prohibition on deceptive acts or practices.

CFPB Takes Action Against Chime (Sendwave) for Deceptive Practices

Adam Witmer
Regulatory Update, UDAAP, Regulation E

On October 17, 2023, the CFPB took action against Chime Inc. for deceiving consumers about the speed and cost of remittance transfers through its mobile app, Sendwave. According to the CFPB’s press release, Chime also illegally forced consumers to waive their legal rights, failed to provide consumers with legally required disclosures and receipts, and failed to properly investigate consumer disputes and errors.

VIDEO: Consumer Negligence for Reg E Disputes

VIDEO: Consumer Negligence for Reg E Disputes

Adam Witmer
Regulation E

In this Compliance Clip (video), Adam discusses how consumer negligence can (or cannot) be considered when conducting an investigation of an “error” under Regulation E. Specifically, he answers two questions regarding a customer being negligent in handling their PIN as well as whether a financial institution can add language to their account disclosures that limit a consumers liability. A transcript of this video is now available.

CFPB Sues Snap Finance for Deceiving Consumers and Making False Threats

Adam Witmer
Regulatory Update, FCRA, Regulation E, Regulation Z

On July 19, 2023, the CFPB sued lease-to-own finance company Snap Finance for deceiving consumers, obscuring the terms of its financing agreements, and making false threats. According to the CFPB, Snap Finance’s practices violate the Consumer Financial Protection Act, the Truth in Lending Act, the Electronic Fund Transfer Act, and the Fair Credit Reporting Act. The CFPB is seeking monetary relief for consumers, an end to Snap Finance’s illegal practices, and a civil money penalty.

CFPB Takes Action Against ACI for Illegally Processing Mortgage Payments

Adam Witmer
Regulatory Update, Regulation E

On June 27, 2023, the CFPB issued an order against ACI Worldwide and one of its subsidiaries, ACI Payments, for improperly initiating approximately $2.3 billion in unlawful mortgage payment transactions. According to the CFPB, ACI’s data handling practices negatively impacted nearly 500,000 homeowners with mortgages serviced by Mr. Cooper (formerly known as Nationstar).

VIDEO: Unauthorized EFTs Using Stolen Credentials

VIDEO: Unauthorized EFTs Using Stolen Credentials

Adam Witmer
Regulation E

In this Compliance Clip (video), Adam discusses whether or not electronic fund transfers (EFTs) that were initiated through fraud or robbery are considered unauthorized EFTs under Regulation E. Adam also cites examples of unauthorized EFTs, based from the CFPB’s FAQs on unauthorized electronic fund transfers. A transcript of this video is now available.

CFPB Issues Order Against Choice Money for Remittance Violations

Adam Witmer
Regulatory Update, Regulation E

On October 4, 2022, the CFPB took action against Choice Money Transfer (Choice Money) for multiple violations of the Remittance Transfer Rule and the Electronic Fund Transfer Act (EFTA), such as failing to accurately disclose important prepayment information to remittance senders. Choice Money is a nonbank remittance provider incorporated in New York and headquartered in New Jersey. It currently handles approximately 500,000 transfers a month.

VIDEO: What is an Error under Regulation E

VIDEO: What is an Error under Regulation E

Adam Witmer
Regulation E

In this Compliance Clip (video), Adam discusses what an error is for purposes of Electronic Fund Transfer Act, for Regulation E and for dispute purposes. In just under 8 minutes, this video takes a pretty deep dive into a core element of Regulation E disputes. This would be a great video to pass on to anyone needing to understand an “error” under Regulation E. A transcript of this video is now available.

VIDEO: Unauthorized Electronic Fund Transfers

VIDEO: Unauthorized Electronic Fund Transfers

Adam Witmer
Regulation E

In this Compliance Clip (video), Adam explains the answer to the questions on whether or not certain situations are in fact an unauthorized electronic fund transfer and whether or not a dispute has to be processed under regulation E. To provide the answer, he dives into the regulation, commentary, and additional guidance from the CFPB. This video is a must watch for anyone in your organization who processes Reg E disputes.

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