Navigating the Complexities of the Small Business Lending Rule: Why Compliance is Crucial for Financial Institutions

Navigating the Complexities of the Small Business Lending Rule: Why Compliance is Crucial for Financial Institutions

it is worth noting that the Revenue Based Finance Coalition (“RBFC”), a trade group comprised of non-bank commercial financing organizations filed a lawsuit against the CFPB on December 26th, 2023 in Florida. Federal district court as an additional challenge to the Small Business Lending Rule. This case focuses on the argument that because sales-based financing does not constitute “credit” within the meaning of the Equal Credit Opportunity Act (ECOA) and Regulation B, the CFPB did not have the authority to regulate sales-based financing as “credit” under the Rule. As shown by the summary above, navigating the complexities of this rule requires precision, insight, and a proactive approach. To safeguard your institution’s compliance and success, we recommend partnering with RADD LLC, a firm that specializes in Section 1071 planning services.

Comprehensive Overview of Regulations in Fintech

Comprehensive Overview of Regulations in Fintech

Regulatory challenges in Fintech are usually related to striking a balance between fostering innovation and protecting consumers from financial crime and loss. This has not come with ease. The debate over whether some digital assets should be categorized as commodities or securities is a prime example.

For one thing, Fintech products often blur the lines between traditional financial services and emerging technologies. With new business models and products, regulatory and compliance risks tend to expand at a rapid pace.

Nevertheless, countries around the world are continually adapting financial regulations to respond to Fintechs’ unique offerings. The regulatory gap is closing slowly but surely.

In this article, we explore some of the major regulatory developments that relate to US Fintechs. But first, let’s answer the following question