CFPB Problems No-Action Letter on Bank’s Small-Dollar Loan Program

CFPB Problems No-Action Letter on Bank’s Small-Dollar Loan Program

CFPB Problems No-Action Letter on Bank’s Small-Dollar Loan Program

The CFPB issued a no-action letter to Bank of America saying that the agency will never simply just take enforcement action contrary to the bank associated with a small-dollar financing system. Particularly, the CFPB reported so it will never act under Sections 1031 (“Prohibiting Unfair, Deceptive, or Abusive Acts or Practices”) and 1036 (“Prohibited Acts”) of Dodd-Frank.

In accordance with the Bank of America no-action letter request, the financial institution’s small-dollar credit product (“Balance Assist”) is organized being a fixed-term, amortizing installment that is small-dollar to be reimbursed over 90 days. The total amount Assist system would offer loans in increments of $100 as much as $500, having a $5 flat administrative charge, regardless of quantity borrowed, in accordance with no other administrative costs charged. Bank of America specified that the total amount Assist item is provided simply to customers with Bank of America checking reports with inflows surpassing a predetermined threshold. Further, the financial institution will perform credit writeup on possible borrowers and may reject people that have a credit history that is poor.

The CFPB’s page provides that the no-action place is present simply to Bank of America and never to your other people. This will be in keeping with the scene indicated recently by Chair Heath P. Read more about CFPB Problems No-Action Letter on Bank’s Small-Dollar Loan Program