Apr. 7: CFPB Updates This Week

PUBLISHED CFPB launches Small Business Lending (SBL) Help

The CFPB issued the small business lending rule. You can read the rule on the CFPB website. To help financial institutions implement and comply with the small business lending rule, the CFPB is launching a dedicated regulatory and technical support program called SBL Help. SBL Help can provide oral and written assistance to financial institutions about their data collection and reporting obligations under the final rule.

You can submit your questions to SBL Help here: https://sblhelp.consumerfinance.gov/.

SBL Help is the latest resource from the CFPB to help financial institutions implement and comply with the small business lending final rule. As announced last week, the CFPB published a small business lending implementation and guidance webpage, which contains several regulatory implementation resources about the final rule, and a small business lending data webpage, which contains several technical resources about submitting small business lending data to the CFPB.

The CFPB plans to publish additional resources to help financial institutions implement and comply with the small business lending final rule. The CFPB has published a video that introduces the types of implementation and compliance support it provides and the timeline these materials are typically released.

You can watch the Introduction to Regulatory Implementation and Guidance video here: https://www.youtube.com/watch?v=cKc_BBxqOwM.

The CFPB took action against James R. Carnes and Melissa C. Carnes, both individually and as co-trustees of the James R. Carnes Revocable Trust and the Melissa C. Carnes Revocable Trust for hiding money through a series of fraudulent transfers in order to avoid paying more than $40 million in restitution and penalties for illegal payday lending activities. James Carnes attempted to evade a CFPB order requiring him and his company, Integrity Advance, to make harmed consumers whole and pay penalties to the CFPB’s victims relief fund. The CFPB is seeking injunctive relief, as well as asking the court to award a money judgment for the value of the fraudulently transferred funds.

James Carnes was the chief executive officer of Delaware-based Integrity Advance, a short-term, online lender. James Carnes and Melissa Carnes reside in Mission Hills, Kansas, which is also the principal place of administration of their revocable trusts.

PUBLISHED CFPB Issues Guidance to Address Abusive Conduct in Consumer Financial Markets
Policy statement details post-financial crisis prohibition on illegal abusive conduct

The Consumer Financial Protection Bureau (CFPB) issued a policy statement that explains the legal prohibition on abusive conduct in consumer financial markets and summarizes over a decade of precedent. The CFPB leads enforcement and supervision efforts to identify and end abusive conduct against consumers. In 2010, in response to the financial crisis, Congress passed the Consumer Financial Protection Act, and created the prohibition on abusive conduct. The Act tasks the CFPB, federal banking regulators, and states with the responsibility to enforce the prohibition, and puts the CFPB in charge of administering it. The policy statement will assist consumer financial protection enforcers in identifying wrongdoing, and will help firms avoid committing abusive acts or practices.


CFPB to distribute more than $4.7 million to consumers impacted by nationwide student financial aid scam

More than 78,000 consumers harmed by College Financial Advisory and Student Financial Resource Center will receive checks in the mail this month.

Learn more about the case and redress payments

In 2015, the CFPB filed a complaint in federal court against College Financial Advisory and Student Financial Resource Center for illegally charging millions of dollars for sham financial services. Global Financial Support, Inc. is a California corporation owned by Armond Aria that operated under the names College Financial Advisory and Student Financial Resource Center. According to the CFPB complaint, Aria and his businesses sent millions of deceptive solicitation packets to students and their families claiming to apply for financial aid services and to match prospective students with targeted financial aid assistance programs for a fee, and mispresented that students would lose their opportunity to receive financial aid unless they paid the company and applied by a stated deadline. In reality, consumers did not receive what they paid for, while the company reaped millions of dollars from the scheme. Learn more about the enforcement action.

The total distribution amount is $4,737,472.17, and the money will come from the CFPB’s Civil Penalty Fund.