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Thursday, April 10, 2014

CFPB & OCC Assesses Penalties for Ancillary Products

By: ABIA Outside Counsel Adam D. Maarec, McIntyre & Lemon, PLLC

The Consumer Financial Protection Bureau announced a $727 million settlement for deceptive telemarketing of debt protection products and unfair billing practices in connection with identity theft protection products. The cookie-cutter case follows nearly identical allegations in other enforcement actions from the CFPB on these two topics. The CFPB ordered $20 million in civil money penalties; $15 million in connection with the debt protection product and $5 million in connection with the identity theft protection product. Total restitution, including refunds already given , amount to $727 million; $268 million for debt protection products and $459 million for identity theft protection products.

Read the CFPB press release.
Read the CFPB blog post.
Read the CFPB consent order.

The ABIA will discuss this consent order at its CFPB Task Force meeting tomorrow, Friday, April 11 at 12:00 EDT. If you would like to be involved in the CFPB task force, contact Deanne Marino.

The ABIA will discuss this consent order and its implications for insurance and ancillary product marketing practices at its Compliance Webinar and Disussion Group that meets next Wednesday, April, 16 at 2:00 EDT. Register to participate.

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