Amy K: It's Tax Season - and That Means Tax Scams!
by Amy Kleinschmit
Chief Compliance Officer

Consumer Reporting Companies. The Consumer Financial Protection Bureau (CFPB) recently issued their 2019 list of consumer reporting companies which can be found here. There is always a lot of focus on the main three national consumer reporting companies that many people are familiar with. This list educates people on all the other types of companies that are collecting information and preparing consumer reports. The list includes a number of employment screening companies, with contact information and if a free report can be obtained by consumers. Side note – there are A LOT of employment screening companies that are potentially collecting information on you.

The CFPB list also includes a variety of other companies including tenant screening companies, check and bank screening, personal property insurance, medical, and low-income and subprime. Supplementary report companies sell data to help entities manage credit and fraud risk. Again, contact information is provided for each company along with whether or not consumers can request a free report and whether or not consumers can freeze their report.


TRID FAQs. CFPB recently issued some FAQs to TRID compliance which can be found here. These FAQs currently fall into two categories – corrected closing disclosures and the three business-day waiting period before consummation, and model forms. Short of completely copying and pasting the FAQs into this Memo article, I would encourage review of these FAQs, especially the corrected closing disclosure topics as that is always a hot issue.  

Tax Scams. It’s tax season and that means tax scams. The IRS issued this fact sheet about avoiding scams last year, but it is a good reminder to review these facts to know how to avoid these scams.

Note that the IRS does not:

  • Demand that people use a specific payment method, such as a prepaid debit card, gift card or wire transfer. The IRS will not ask for debit or credit card numbers over the phone. For people who owe taxes, make payments to the U.S. Treasury or review for IRS online options.
  • Demand immediate tax payment. Normal correspondence begins with a letter in the mail and taxpayers can appeal or question what they owe. All taxpayers are advised to know their rights as a taxpayer.
  • Threaten to bring in local police, immigration officers or other law enforcement agencies to arrest people for not paying. The IRS also cannot revoke a license or immigration status. Threats like these are common tactics scam artists use to trick victims into believing their schemes.

As always, CUAD members may contact Amy Kleinschmit with any compliance related questions.



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