Will Your Lender Make the Naughty List?
Consumer Bureau plans to track nefarious lenders
Hey, so, it’s the holidays. You might want to get a loan to manage it.
And, well, sure, your bank isn’t a good option.
So, you turn to an online lender or an app like Dave or MoneyLion.
Umm, well, wait. First, those lenders charge crazy interest rates — like more than double the cost of your loan.
Second, Santa is watching!
Well, not exactly Santa — but the Consumer Financial Protection Bureau (CFPB).
American Banker notes that the CFPB is creating a list of nonbank financial entities that run afoul of local, state, or federal law:
The Consumer Financial Protection Bureau proposed a rule on Monday that would require nonbanks to report any state and local court orders or judgments involving consumer financial products to the bureau, which it would pool into a database of violators that would be available to the public.
The CFPB said it plans to create a registry of so-called “lawbreakers” that would potentially mitigate risks to consumers and help “unify the efforts of consumer financial protection enforcers.” In a 212-page proposed rule, the CFPB said it plans to create a registry of nonbank…
