Banks face a barrage of lawsuits related to credit reports; the winners and losers from the stress test
The number of lawsuits filed under the Fair Credit Reporting Act has spiked in recent years. Photo credit: Bloomberg News

Banks face a barrage of lawsuits related to credit reports; the winners and losers from the stress test

Surge in credit report lawsuits has banks, credit agencies scrambling: Banks and financial institutions face a barrage of lawsuits from consumers alleging they failed to investigate inaccurate information on a credit report. Industry blames the uptick in litigation on social media sites and the proliferation of credit repair companies.

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Citigroup and Huntington were two of the banks that emerged from the Federal Reserve's annual stress tests as winners. The results presented more challenges for BMO and Citizens. Photo credit: Bloomberg News

Which banks were winners and losers in this year's stress tests?

Large and regional banks again proved their resiliency in the Fed's annual exams. But analysts noted that a few lenders faced some negative surprises — a development that may scuttle investor hopes for share buybacks by those banks.

The CFPB issued a fair lending report that it is forcing lenders to make an effort to ensure their lending algorithms (AI based or not) meet fair lending laws.?Photo credit: Joshua Roberts/Bloomberg

Consumer groups to CFPB: Make banks fairness-test AI lending software

The Consumer Federation of America and Consumer Reports sent a letter to the Consumer Financial Protection Bureau urging it to require banks to search for less discriminatory models. Later the same day, the CFPB issued a report saying it's doing just that.

Read more: Bank, credit union executives share how they built virtual branches

A TD bank branch with ATM machines in midtown Manhattan. Photo credit: DW labs Incorporated/Adobe Stock

'Sonic brand' strikes the right tone with TD Bank's ATM users

When TD Bank launched an audio brand identity across its communication channels early this year, the new jingle triggered a surprising reaction from consumers using the firm's ATMs.

VersaBank, headquartered in London Ontario, has been cleared by regulators in the U.S. and Canada to acquire Stearns Bank Holdingford in Holdingford, Minnesota. Photo credit: Harold Stiver - stock.adobe.com

Canadian bank's cross-border merger approved ending a two–year wait

VersaBank plans to use the one-branch Stearns Bank Holdingford in Minnesota as a platform to expand a lucrative niche business acquiring loan and lease receivables from point-of-sale lenders.

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