On Jan. 9, the California Department of Financial Protection and Innovation (DFPI) announced a consent order against Credova Financial, LLC as part of an effort to protect consumers from hidden fees using the California Consumer Financial Protection Law (CCFPL).
Hidden convenience fees fit into a broad category known as “junk fees” and increase the amount that consumers pay for goods and services.
Credova is an internet-based platform that allows merchants to offer installment contracts to its customers. Credova contracts with a third-party servicer for all installment contracts originated on its online platform. The third-party servicer charges convenience fees when consumers choose to pay their installments online or over the phone.
According to the consent order, Credova was aware of the potential convenience fees but failed to disclose information regarding the fees when consumers entered into the installment contracts.
The DFPI commissioner determined that failing to disclose potential convenience fees before consumers enter into these financing contracts is deceptive and therefore violates the CCFPL.
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Using the above phone number and email address, you can gain access to a knowledgeable team that’s ready to address all your credit union’s compliance inquiries — promptly and efficiently. With the Compliance Hotline, you can proactively respond to impromptu questions and issues by getting clarity and insight on technical topics that normally slow you down. We want to help you unlock the full potential of your League membership by leveraging the resources and support you need to navigate the complex world of compliance effortlessly. We’re ALWAYS just a phone call or email away!
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For more information, email Lisa Quaranta.
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