Many financial institutions are still adjusting to the requirements of the Consumer Financial Protection Bureau (CFPB). Consumer financial institutions now have the onus of actively promoting consumer protection and reporting consumer complaints. Entities that are not in compliance may face fines and, potentially, loss of revenue. Because the scope of the CFPB is so large, there are several businesses that don’t even realize that they must also follow the regulations. As such, it is crucial that financial institutions develop a comprehensive CFPB compliance management system to protect themselves and their customers.
Put a Regular Audit Process in Place
While institutions should always be prepared to take action if the CFPB has a finding during its audit, it’s important to prepare in advance by auditing your own organization and conducting an audit of your subcontractors. Be sure the team takes this pre-audit seriously, and if there are findings, the institution should develop a plan to bring everything into compliance by the CFPB visit.
Use Technology to Develop the CFPB Compliance Management System
The CFPB is clear in its requirements for a compliance management system, which are outlined in the CMS Examination Procedures. A good way to make sure that consumer information is correctly collected and secured is by updating dynamic recovery services, bill collection software, and any case and point legal software. Develop a timeline to have subcontractors update their systems as well.
Stay Ahead of Compliance Changes
Financial institutions are expected to keep up with any changes that are made to the policies of the CFPB. As such, they should regularly keep up with changes in regulations and guidelines. Taking courses in CFPB compliance also allows institutions to keep abreast of any changes, study best practices, and develop long term strategies for compliance. Training will often discuss collection solutions as well.
While many financial institutions may worry about this changing landscape, the CFPB compliance management system requirements allow them to proactively develop new systems and technologies. Institutions that comply with the CFPB should also have the benefit of increased customer satisfaction, updated processes, and internal checks to ensure that systems are working correctly.