The Consumer Financial Protection Bureau has ordered Security National Automotive Acceptance to pay $2.4 million in fines and redress for failure to comply with a consent order that alleges illegal tactics to collect debt from service members. The CFPB has levied a $1.25 million penalty on the Ohio auto-loan servicer, in addition to a $1 million penalty in 2015.
Startups have accounted for slightly more than 11% of job growth during the latest economic expansion, down from 15% in the 1990s, according to the Labor Department. The slowdown indicates reduced entrepreneurship and a lack of dynamic environment needed to boost productivity, economists say.
The Conference of State Bank Supervisors has sued the Office of the Comptroller of the Currency, saying the latter has no authority to offer a federal charter for financial-technology firms. The group says that the OCC is authorized to charter only firms involved in banking, per the National Bank Act, and that chartering fintechs would pre-empt state law.
President Donald Trump's push to reduce the corporate tax rate from 35% to 15% may face opposition from House Speaker Paul Ryan, R-Wis. House Republicans issued a plan last year that proposed a tax-rate reduction to 20% and exempted exports, and Ryan has questioned whether a 15% tax rate is realistic, given his goal of making the new tax plan revenue-neutral.
Twelve Wells Fargo board members, including Chairman Stephen Sanger, have been narrowly re-elected, despite stockholders' anger about the fake-accounts scandal. The board is expected to reshuffle in the next four years because six directors, including Sanger, are approaching mandatory retirement age.
A recently launched app predicts when accounts will run low on funds and then offers advances to users to protect them from overdraft fees. The app's creators, who will charge users $1 per month and are not partnering with any banks, have raised $3 million from investors.
Supporters and critics of the Consumer Financial Protection Bureau must find a balance and be willing to compromise, not seek dramatic wins, writes Ari Karen, principal at Offit Kurman. "Any one-sided victory for either side will be illusory at best, and lead to a slew of new and perhaps worse problems, requiring an entirely different set of subsequent reforms," he writes.
An uptick in credit card losses has dinged the bottom line at Discover Financial Services. Its charge-off rate hit a five-year high in the first quarter, and the company raised its loan loss provision by 38%.
Increases in average life expectancy bring with them the risk of running out of funds late in life. Mark Miller writes that advisers can perform a valuable service by encouraging their clients to think carefully about the financial consequences of longevity, and he lists several topics that should be part of that conversation.
The Consumer Financial Protection Bureau's Project Catalyst, designed to encourage collaboration among startups and financial firms, never lived up to expectations, writes House Financial Services Committee Vice Chairman Patrick McHenry, R-N.C. The project's failure should be used as an impetus for regulatory reform that encourages innovation and entrepreneurship, he writes.