Is Wells Fargo The Citizen Kane of Banking ?

July 28, 2017 at 8:59 am Leave a comment

Wells Fargo is in the news again. For those of us who would like to see the CFPB’s powers scaled back that is not a good thing.

The NY Times is reportingg this morning that more than 800,000 people who took out car loans from the banking behemoth were charged for auto insurance they  did not need, and some of them are still paying for it.  These  payments resulted in 274,000 delinquencies and 25,000 repossessions.

When wells’ Account opening shenanigans were uncovered regulators responded with guidance on properly incentivizing front line staff.  My guess is you will soon be seeing guidance on properly notifying members about collateral protection insurance.  It’s a quiet Summer Friday so use some of it to review your auto loan insurance requirements with an eye towards ensuring that members are receive proper notification.  Here is an opinion letter from NCUA authorizing credit unions to use such insurance .

One of my favorite scenes  in the movie Citizen Kane is when one of the reclusive mogul’s former advisers  explains that  it’s easy to make a lot of money if all you want to do is make a lot of money. Everyday all lending institutions,  irrespective of their size, have  to balance the cost of compliance against  the need to generate income.  Wells is an example of what happens when executive’s decide that it’s a lot easier to make money when you don’t follow the rules.

Entry filed under: Compliance, General.

What The “Summer From Hell” Says About Our Payments System When it Comes to Merchant Liability, Bogart Is Spot On

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Authored By:

Henry Meier, Esq., Senior Vice President, General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association. In addition, although Henry strives to give his readers useful and accurate information on a broad range of subjects, many of which involve legal disputes, his views are not a substitute for legal advise from retained counsel.

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