The FDIC recently placed a consent order on Cross River Bank for potentially unsafe banking practices. Shub & Johns investigates.
Shub & Johns LLC investigates “banking-as-a-service” provider, Cross River Bank, or CRB, after a March 2023 Consent Order from the Federal Deposit Insurance Commission (“FDIC”) indicated that CRB has engaged in unsafe or unsound practices related to the FDIC’s fair lending compliance.
Cross River Bank makes loans through numerous partnerships with fintech companies such as Affirm, Rocket Loans, and UpStart. While CRB has neither admitted nor denied the charges, the consent order blocks them from entering new partnerships with third parties without FDIC approval. Other banks and providers who are fintech-friendly may become wary of this ongoing issue and are like to proceed their practices with caution.
Shub & Johns team continue to keep track on these banking endeavors as scrutiny among Banks’ fair lending practices is growing exponentially. If you have experiences issues with Cross River Bank or other banks potentially engaged in harmful and unfair lending practices, fill out the attached form to contact Shub & Johns today!