By: ABIA Outside Counsel Chrys Lemon, Adam Maarec and Chris Datskos, McIntyre & Lemon, PLLC
The Consumer Financial Protection Bureau (CFPB) recently fined a bank and one its subsidiaries for engaging in deceptive marketing tactics in connection with the offering of its retail credit card by third party health care facilities. As a result, the bank was required to refund over $34 million to consumers and significantly revise its business practices.
Banks engaged in insurance sales should take note of the CFPB’s scrutiny of disclosure of material terms and conditions in marketing solicitations, including pricing. The agency has also continued to stress the importance of training and oversight when sales activities are conducted by third parties.
Click here for a members-only anaylsis about the specific practices the CFPB found to be unfair and deceptive. If you are having trouble logging on or you are with a member that in not a bank, please contact us and we will email you a copy.
If you would like to learn more about ABIA's work with CFPB to educate them about the bank-insurance industry or join our CFPB Task Force, please contact us and visit our website.