CFPB Terminates Consent Orders with Large Tech Company and National Bank
The CFPB terminated separate consent orders with a large tech company and a national bank, to which the respective parties had agreed following administrative enforcement actions alleging that the companies’ credit card products violated various federal laws.
The CFPB and the technology company had entered into a consent order in October 2024 to resolve allegations concerning the company’s credit card partnership with a national financial institution. Specifically, the Bureau had alleged that the company’s acts or practices with respect to receiving and processing transaction disputes, representations regarding the refund process, and marketing materials regarding interest-free financing violated the Consumer Financial Protection Act.
WBK covered the details of the consent order here. The recent order terminates the consent order and waives any non-compliance with the consent order. The termination order does not state that the Bureau will return the $25 million civil money penalty paid by the company.
Separately, the CFPB and the national bank had entered into a consent order in July 2022 to resolve allegations concerning the company’s credit card product and deposit accounts. Specifically, the Bureau alleged that the company’s acts or practices with respect to consumer credit applications, consumer deposit accounts, and obtaining consumer reports violated various federal laws (including the Truth in Lending Act, the Fair Credit Reporting Act, and the Truth in Savings Act).
The recent order terminates the consent order and waives any non-compliance with the consent order. The termination order asserts that the bank has fulfilled specific obligations under the consent order, including payment of a $37.5 million civil money penalty, payment of redress, and implementation of procedures to prevent future violations. The termination order does not state that the Bureau will return the civil money penalty paid by the company.
