Are checks written by Smith and Wesson Attorneys at Law on their account considered covered transactions?

Checks written by Smith and Wesson Attorneys at Law on their account are considered non-covered transactions because they pertain to business activities rather than individual consumer transactions. Covered transactions are generally those that involve consumer credit or loans, which are subject to specific regulations under the Consumer Financial Protection Bureau (CFPB) guidelines. In this case, the nature of the checks—stemming from a law firm's business account—means they do not fall under the category of transactions that are monitored or regulated in the same way as personal consumer transactions conducted by individuals.

This distinction emphasizes the CFPB's focus on transactions that directly impact consumer credit and protect consumers from potential unfair practices in lending. Hence, transactions involving business accounts or entities like law firms are categorized differently in compliance training contexts.