marketing – Federal Financial Analytics

25 01, 2023

FedFin on: Negative Option Marketing

Arezou Rafikian2023-01-25T16:14:16-05:00January 25th, 2023|The Vault|

Using one of its controversial edicts to set what some consider a new rule, the CFPB has opined that negative-option or “subscription” marketing of consumer-financial products or services may be unfair, deceptive, or abusive (UDAAP) and thus subject to significant sanction for both the provider and any third parties with which it works. Although the circular does not prohibit negative-option marketing, these sanctions and the sometimes-vague nature of stipulated safeguards may lead some financial companies…..

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CONSUMER49

Max Camateros-Mann2023-01-25T10:04:03-05:00January 25th, 2023|1- Financial Services Management|

Negative Option Marketing

Using one of its controversial edicts to set what some consider a new rule, the CFPB has opined that negative-option or “subscription” marketing of consumer-financial products or services may be unfair, deceptive, or abusive (UDAAP) and thus subject to significant sanction for both the provider and any third parties with which it works. Although the circular does not prohibit negative-option marketing, these sanctions and the sometimes-vague nature of stipulated safeguards may lead some financial companies simply to eschew subscription marketing. The circular is unclear as to the extent of a financial company’s liability for supporting sales via a third-party vendor whose practices fall short of CFPB expectations.

CONSUMER49.pdf…

DEPOSITINSURANCE117

Max Camateros-Mann2023-01-03T10:15:13-05:00January 3rd, 2023|1- Financial Services Management|

FDIC Coverage Protections

In the wake of increasing instances in which customers are confused and even misled about the extent to which fintech and cryptoasset holdings are insured deposits, the FDIC is proposing new standards addressing this problem as well as ways to modernize IDI representations of their own FDIC-insured offerings in branches and through the fast-changing array of retail banking delivery channels. The last time these signage standards were updated beyond a generic FDIC 2022 rule barring misrepresentation was 2007, a time of course well before digital finance took off. Now, new signage, displays, or postings would need to clearly, conspicuously, and continuously advise retail customers when funds are FDIC insured and that FDIC insurance does not cover offerings in the facilities that would now be segregated from where insured deposit are receipt to accept non-deposit funding.

DEPOSITINSURANCE117.pdf…