Military Credit Monitoring
The FTC issued a Final Rule implementing parts of a federal law that modified the FCRA to require CRAs to provide free electronic credit monitoring service to active duty service members. The FCRA amendment requires CRAs to notify service members about any “material” additions or modifications to their credit files, and the Final Rule defines key terms such as “electronic credit monitoring service” and “material additions or modifications.” CRAs are required to comply no later than October 31, 2019, but CRAs can comply with certain parts of the Final Rule by offering their existing commercial credit monitoring services to active duty service members for free for a period of one year from the effective date.
For more information, contact Angela Kleine at [email protected]
Joining the Cool Kids
Following other federal banking agencies, the FDIC launched a new publication, Consumer Compliance Supervisory Highlights, to “enhance transparency regarding the FDIC’s consumer compliance supervisory activities.” In the inaugural issue, the FDIC noted that of approximately 1,200 consumer compliance examinations conducted, “[o]verall, supervised institutions demonstrated strong and effective management of consumer compliance responsibilities.” The FDIC did identify several areas in which it identified compliance issues: (1) overdraft programs (e.g., UDAP violations around the use of the “available balance” method to access overdraft fees); (2) RESPA anti-kickback violations; (3) violations of Regulation E (e.g., misapplying timing requirements); and (4) inadequate disclosures for “Skip-APayment” programs. For more information, contact Obrea Poindexter at [email protected]
You Get a Division!
The FDIC announced the creation of a new division, the Division of Complex Institution Supervision and Resolution (CISR), in an effort to “centralize the supervision and resolution activities for the largest banks and complex financial institutions.” The CISR Division will be led by Rick Delfin, the current Director of the FDIC’s Office of Complex Financial Institutions, and will be operational on July 21, 2020. Under the new structure, the CISR Division will handle the FDIC’s supervision and monitoring of banks with assets of more than $100 billion for which the FDIC is not the primary regulator and will be responsible for planning and executing the FDIC’s resolution mandates for these banks.
For more information, contact Oliver Ireland at [email protected]