Legal Blog

Compensation and Compliance Matters: Don’t Play Telephone with Vendor Oversight

Mortgage professionals may have overlooked the Consumer Financial Protection Bureau’s recent $120 million consent orders to resolve allegations of illegal billing practices by Sprint and Verizon. But these cases provide substantial guidance to the extent that the CFPB expects businesses — including lenders — to affirmatively protect their consumers from harm in any way related to the business transacted between them. In the Sprint and Verizon cases, the wireless carriers outsource payment processing for “premium services” to third-party aggregators. However, those third-party aggregators failed to implement sufficient compliance systems and monitor separate merchants placing charges on customers’ cell phones. Click here to read the entire article on National Mortgage News. akaren@offitkurman.com  | 240.507.1740 Ari Karen is an experienced litigator and speaker who has focused his practice in representing financial institutions in both government investigations and litigation before state and federal trial and appellate courts nationwide. Mr. Karen’s practice is diverse, representing clients on matters concerning banking regulations, Dodd Frank financial reform laws, contractual disputes, employment and labor statutes, wage-hour class actions, employment discrimination and fair lending matters, whistleblower complaints and non-competition claims, among others. You can also connect with Offit Kurman via FacebookTwitterGoogle+YouTube, and LinkedIn. WASHINGTON | BALTIMORE | FREDERICK | PHILADELPHIA | WILMINGTON | VIRGINIA | NEW YORK