The Consumer Financial Protection Bureau issued guidance to law enforcement agencies and regulators explaining how companies operating comparison-shopping tools can break the law when they steer consumers to certain products or lenders because of kickbacks.
CFPB issues guidance on financial comparison-shopping sites
March 01, 2024 / By ICBA
The Consumer Financial Protection Bureau issued guidance to law enforcement agencies and regulators explaining how companies operating comparison-shopping tools can break the law when they steer consumers to certain products or lenders because of kickbacks.
The Consumer Financial Protection Bureau issued guidance to law enforcement agencies and regulators explaining how companies operating comparison-shopping tools can break the law when they steer consumers to certain products or lenders because of kickbacks.
Details: The CFPB said:
Consumers use comparison-shopping tools to evaluate financial products, including credit cards, loans, and bank accounts.
Some digital comparison-shopping sites accept financial kickbacks, or “bounties,” to manipulate lists of results displayed to shoppers.
While the bureau previously issued guidance on mortgage comparison-shopping, the new circular provides guidance on how consumer financial protection laws apply to comparison shopping for other financial products.
It is developing a consumer-facing tool that will be designed to bring more price transparency to credit card comparison-shopping.
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