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What's the Real Story on Buying a CMS


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Mar 17 2017
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Are you a bank, lendor, attorney, law firm - 1st or 3rd Party Collections - Pay Day lender - SMB With monthly receivables - Autodealer or vehicle business - Vendor of any of the above? Then you're on the radar screen at the CFPB and below is a turn-key solution. The Bureau enforces numerous consumer protection laws. Maximum risk lies within the Fair Debt Collection Practices Act and the Unfair, Deceptive, Abusive Acts (UDAAP). When auditing a business, their objective is to “assess the quality of the entity’s CMS.” They also state: “THE CFPB EXPECTS EVERY ENTITY TO HAVE AN EFFECTIVE CMS.” This is in their exam manual. The CMS is not optional, it’s required and it has to be populated. (http://ComplianceUmbrella.com) 1. The CFPB is a real risk: They’ve assessed over $12 billion in fines, shut down violating businesses, won’t allow businesses to cover civil money penalties with insurance. T ...

Tidbits on CFPB Risk


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Mar 17 2017
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The PHH case is red hot. This is the one that may be the giant-killer, since the first big effect was a federal court decision that a CFPB action was unconstitutional, violated due process and started a protracted battle that may topple the CFPB. Here are other tidbits: 1. No Statute of Limitations in RB4:   Referred to in the PHH v. CFPB Amicus Brief from the Chamber of Commerce as a “breathtaking assertion of raw administrative power that, if permitted to stand, would open the door to similarly unfair and unauthorized sanctions by the bureau under its broad enforcement authority,” the Director’s office of the Bureau first increased the money penalty by over $100 million for RESPA violations, then announced that statutes of limitations (SOL) don’t apply to administrative proceedings under RESPA. The issues are still pending but it’s hard to believe that the Bureau can pick and choose wh ...

New 4th Branch of Government


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Mar 17 2017
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PREMISE The effect of Dodd-Frank and the CFPB has started us down a new road of regulatory risk. Particularly for SMBs, addressing the risk, building a new portfolio of compliance activities and solutions has become mission critical. Numerous segments of the marketplace are calling this the rise of a fourth branch of government – one that is a heavy burden for all of America, but especially SMBs and the middle class. Without the help of Congress and the Legislative Branch, government agencies are making law. They call it rulemaking, regulations, interpretations, guidelines and all of these carry the power of law. In fact, a strong argument can be made that the work product coming out of this new 4th branch (referred to as “underground regs”) rises above being mere laws, thanks to a number of factors, briefly listed here: 1.      ENFORCEMENTS – Is the bureau playing “Let’s Pretend?” They ...

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