Fair Lending Laws
If you're an auto dealer, accountant, tax preparer, investment adviser, consumer lender, collection agency, retailer or otherwise involved in consumer financial transactions, you're covered by at least some of the Fair Lending Laws. LexAlign can help you.
Click on any title below to learn why LexAlign should be an essential component of your compliance practices.
The Fair Lending Laws are both broad and varied. From privacy and security, to non-discrimination to the many rules affecting companies that use consumer reports. Regulations cover every stage of that relationship: from marketing, consumer interactions, customer acquisition, to termination of the relationship. And they are all strictly enforced at both the federal and state levels.
No. Which rules apply to you, and which requirements in each rule, depend on what you're doing, what products or services you're offering, what you're saying to consumers, and how you're treating them.
The rules may require you to have written polices, employee training, consumer notices, and various processes and procedures. It would be a waste of time and resources to try to comply and train on rules or requirements that don't apply to you. Besides which, regulators expect that your policies, training materials, notices, etc. are tailored to your operations.
A policy, notice or training material may be ok for your competitor but not appropriate or sufficient for you. So beware of any vendor that wants to sell you "standard" policies, notices, or training materials.
It depends on many factors, including (among others) which law, whether enforcement is by state or federal agencies, the nature of the violation, whether it's willful or negligent, and whether there is a pattern or practice.
But one thing is certain: the Fair Lending laws are HIGH RISK. Consumers are learning their rights and making complaints to regulators, and regulators are listening. There are many instances where regulators make an example of companies.
Besides which, the costs of noncompliance are multiple, and the damage lasts a long time. It's not just a matter of reimbursing consumers and paying fines or penalties. There are the costs of dealing with multiple investigations, possible actions, even class actions. You may be required to comply with individualized, heightened requirements relative to your competitors. You may face long-term reputational harm. You may even lose your license and face prison time.
No. Ignorance is no defense. Neither is size, youth or lack of resources. Thankfully, that's where LexAlign can help.
LexAlign's proprietary systems and technology are designed to provided tailored compliance checklists, guides, notices and other documents required under the Fair Lending laws. It's all available at a fraction of the cost of alternative resources. And it's easy to use: our tools and products are automated and available online, at any time. No prior knowledge of the law is required.
Our tools and products are industry-specific, and we're constantly adding new ones. If, after creating an account, you don't see what you're looking for, simply let us know.
Right now use of our system is by invitation only. If you want an invitation, Contact Us.
With LexAlign, compliance with Federal financial privacy rules is finally within reach.