The U.S. Consumer Financial Protection Bureau (CFPB) is reportedly proposing a refund requirement for digital assets following a slew of crypto hacks. According to a new report by The Financial Times, the CFPB – which aims to protect consumers from unfair financial practices by institutions – is proposing a new rule that would mandate crypto […]
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A proposed CFPB rule could allow crypto users to have protections similar to those of US bank account holders by considering the definition of “funds.”
The US Consumer Financial Protection Bureau (CFPB) has proposed a rule that could require crypto asset service providers to reimburse users for funds stolen through illicit activities, including hacks.
In a Jan. 10 notice, the CFPB proposed a rule that could allow accounts or wallets using “emerging payment mechanisms” set up for personal use to be subject to similar protections as fiat bank accounts.
The US regulator suggested that the same rights that “guard against error and fraud” under the Electronic Fund Transfer Act (EFTA) could protect consumers transacting in stablecoins or “any other similarly-situated fungible assets that either operate as a medium of exchange or as a means of paying for goods or services.”
Customers at JPMorgan Chase, Wells Fargo and Bank of America have collectively lost $870 million to scammers on Zelle in the last seven years, according to a powerful US bank regulator. The Consumer Financial Protection Bureau (CFPB) says it’s suing the three banking giants and Zelle’s parent firm for allegedly failing to protect people from […]
The post JPMorgan Chase, Wells Fargo and Bank of America Customers Lose $870,000,000 To Scammers on Zelle, Forcing Victims To ‘Fend for Themselves’: CFPB Lawsuit appeared first on The Daily Hodl.
A US bank regulator says it’s shutting down a “legal loophole” that’s costing customers $5 billion in fees per year. The Consumer Financial Protection Bureau (CFPB) says a new rule will force large banks to either limit overdraft fees to $5, align them to actual costs and losses, or treat overdraft loans like other credit […]
The post US Bank Regulator Terminates ‘Legal Loophole’ That’s Draining $5,000,000,000 From Customer Accounts Per Year appeared first on The Daily Hodl.
The Consumer Financial Protection Bureau (CFPB) is penalizing a US bank for predatory loan practices and illegal repossession of people’s assets. The CFPB says that Fifth Third Bank harmed 35,000 customers, including roughly 1,000 people who had their cars repossessed. According to the agency, the bank forced customers who already had car insurance to pay […]
The post Billion-Dollar Bank To Pay $20,000,000 Fine After Hitting Customers With ‘Illegal, Worthless Fees’ and Illegally Triggering Asset Seizures: CFPB appeared first on The Daily Hodl.
A US banking regulator says $384 million will soon be handed to victims of an online bank’s illegal practices. The Consumer Financial Protection Bureau says 191,000 people will receive the windfall of cash, which will be given to former customers of Texas-based Think Finance. The agency filed a lawsuit against the lender in 2017, accusing […]
The post $384,000,000 To Be Handed To 191,000 Victims of Banking Giant’s Illegal Practices: Consumer Financial Protection Bureau appeared first on The Daily Hodl.
A US bank with $20.5 billion in assets, loans, and deposits will send at least $5 million to thousands of customers after allegedly harvesting millions of dollars in illegal overdraft fees. The Consumer Financial Protection Bureau (CFPB) says Atlantic Union Bank enrolled thousands of people in checking account overdraft programs without proper consent. The agency […]
The post Billion-Dollar Bank Sending $5,000,000 to Customers After Illegally Harvesting Millions in Fees: CFPB appeared first on The Daily Hodl.
One of the largest banks in the country is getting slapped with a multi-million dollar fine from the Consumer Financial Protection Bureau (CFPB). The agency says Bank of America will pay $12 million for repeatedly sending false information to federal regulators. The CFPB says BofA has routinely violated the Home Mortgage Disclosure Act, which was […]
The post Bank of America To Pay $12,000,000 Fine for Repeatedly Breaking the Law, Sending False Information to Regulators appeared first on The Daily Hodl.
One of the largest licensed lenders in the US will pay a $15 million fine for “widespread illegal conduct” including withdrawing funds from customers’ bank accounts without their consent. The Consumer Financial Protection Bureau (CFPB) says it’s banning the Chicago-based lender Enova from offering certain consumer loans after the firm violated orders to change its […]
The post Financial Giant Fined $15,000,000 for Withdrawing Funds From Bank Accounts Without Consent, Deceiving Customers With False Statements appeared first on The Daily Hodl.
The head of the U.S. financial consumer watchdog says it’s looking to issue guidance on how crypto could fall into electronic fund transfer laws.
The top United States agency for consumer financial protection is considering applying the Electronic Fund Transfer Act (EFTA) to crypto, in an attempt to protect consumers from fraudulent crypto transfers.
Speaking at an Oct. 6 payments conference by the Brookings Institution think tank, Consumer Financial Protection Bureau (CFPB) director Rohit Chopra said his agency is looking at applying the EFTA to “private digital dollars and other virtual currencies.”
“To reduce the harms of errors, hacks, and unauthorized transfers, the CFPB is exploring providing additional guidance to market participants to answer their questions regarding the applicability of the Electronic Fund Transfer Act with respect to private digital dollars and other virtual currencies,” Chopra said.
Passed in 1978, EFTA is a federal law that protects consumers when they transfer funds electronically, whether by debit cards, ATMs or bank accounts and aims to limit consumer losses from unauthorized transfers.
The regulations obligate financial institutions to inform consumers of if — or when — they are liable for unauthorized transfers. Liability disclosures are meant to be communicated before the first electronic transfer happens on a user account.
The move by the agency comes amid an over 150% year-on-year increase in crypto-platform hacks and as the first criminal trial of FTX co-founder Sam Bankman-Fried enters its second week who is accused of fraudulently accessing and using customer funds.
The exchange also suffered a hack north of $400 million in the weeks after its bankruptcy.
Related: Basel Committee to consider disclosure requirements for banks’ crypto assets
Chopra added the CFPB will also issue orders to “certain large technology firms” to gain information on their business practices in regard to the use of personal data and issuing private currency.
Additionally, the agency will look into examining non-banks that offer payment platforms.
Chopra also suggested the Treasury’s Financial Stability Oversight Council should classify some crypto activities as a “systemically important payment clearing or settlement activity.”
“This could provide, for example, other agencies with critical oversight and tools to ensure that a stablecoin is actually stable.”
Magazine: Blockchain detectives — Mt. Gox collapse saw birth of Chainalysis
