CFPB fines large institution $4.6M for FCRA violations




On Aug. 2, the Consumer Financial Protection Bureau announced it is taking action against a major institution for failures in FCRA violations related to information it provided for checking account screening reports.

The Bureau said that this institution broke the law by failing to comply with its obligations outlined in the Fair Credit Reporting Act by not having adequate policies in place regarding the accuracy of the information it reported about consumers’ checking account behavior. The Bureau also said that the institution failed to provide consumers who disputed their information with the results of its investigation, and failed to tell certain consumers which consumer reporting company supplied the information that resulted in the organization’s denial of their checking account application. This company will pay a $4.6 million civil money penalty under the Consent Order issued by the Bureau as a result of these FCRA violations.

“This is a great reminder of the importance to of having sound internal controls and monitoring around the entirety of a process,” says Jeff Kelly, vice president of governance, risk and compliance at OnCourse Learning. “Consumer protection continues to be a hot focus and therefore lapses in procedures that lead to consumer harm will continue to expose institutions to risks of fines and other supervisory actions.”

 


About the author

Amanda Ellsworth

Amanda Ellsworth is senior marketing manager for the Financial Services division of OnCourse Learning. She has extensive experience in the financial services sector, corporate and higher education, as well as training and development. Ellsworth holds a master’s degree in Industrial and Organizational Psychology from The Chicago School of Professional Psychology, and a bachelor’s degree in Communication from Michigan State University.

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