Avoiding the Pitfalls of Overdraft Protection Programs

Part 2 of my Class Actions Have Little Class Involved Credit unions, along with other financial institutions, have offered overdraft protection programs for many years. These programs provide protection for customers in avoiding returned check fees and the embarrassment of denied transactions, and provide fee income to the credit union. These programs have faced scrutiny as long as they have … Read More

Foreclosure Fairness Act 2016 Exemption Requirements

Homeowners that the credit union has provided a Notice of Default to, and lived in their home when the foreclosure processes started, are eligible to participate in Washington State’s Foreclosure Fairness Act Mediation Program, unless the credit union has conducted less than 250 foreclosure sales during the previous year, and claimed their exemption status to the Department of Commerce.  Credit … Read More

Class Actions Have Little Class Involved

part 1… Class action claims of website accessibility discrimination have been increasing recently. Two new complaints were filed last month for ADA (American’s with Disabilities Act) accessibility discrimination. These complaints allege that the National Basketball Association’s and Home Depot’s websites are not accessible to blind users. Also in November, Scribd agreed to update its access to eBooks to make them … Read More

Updates on the Marijuana Market

In November, the US Postal Service in Portland issued a directive warning that it is illegal to mail advertisements about buying or selling marijuana.  While they cannot refuse the mailing, they will report it to law enforcement agencies.  USC 843(c) deems it unlawful to place an ad in any publication with the purpose of seeking or offering illegally to receive, … Read More

Statement on Prudent Risk Management for Commercial Real Estate Lending

The Federal Reserve, the FDIC, and the OCC jointly issued this Statement to remind financial institutions of existing regulatory guidance on prudent risk management practices for commercial real estate (CRE) lending activity through economic cycles.  The NCUA was not part of the agencies that issued the statement, but may follow other agencies guidelines when conducting audits. The Statement includes “Historical … Read More

OCC Semiannual Risk Perspective Report

The Office of the Comptroller of the Currency (OCC) released its Semiannual Risk Perspective Report providing OCC supervisory concerns.  Leading concerns are strategic, underwriting, cybersecurity, compliance and interest rate risks. Highlights included in the report are: Many national banks and federal savings associations continue to face strategic challenges to growing revenues to meet target rates of return in a slow-growth, … Read More

In-Person Collection of Consumer Debt

CFPB Compliance Bulletin 2015-07 Compliance Bulletin 2015-07 warns creditors, debt buyers, and third-party collectors of potentially unlawful in-person debt collection practices.  The bulletin reminds the financial services industry of debt collection practices prohibited by the Dodd-Frank Act and the Fair Debt Collection Practices Act, including: Engaging in unfair, deceptive, or abusive acts or practices, Communicating with a consumer at any … Read More

HMDA and TILA annual adjustments

The CFPB has announced two final rules with annual threshold adjustments under the implementing regulations for the Home Mortgage Disclosure Act (HMDA) and the Truth in Lending Act (TILA). The HMDA asset-size exemption threshold under Regulation C is unchanged at $44 million. Institutions with assets of $44 million or less as of December 31, 2015, are exempt from collecting HMDA … Read More

Military Lending Act… continued

We blogged about the new requirements for the Military Lending Act (MLA) previously.  In summary, the final rule broadens the MLA protections by expanding the range of covered loans, defining a covered borrower, adding more components to the MAPR, placing restrictions on imposing other limitations, and requiring a statement of the MAPR Disclosure.  Compliance with the changes is required by … Read More

IRS Criminal Investigation Releases Fiscal Year 2015 Annual Report

The Internal Revenue Service released its IRS Criminal Investigation (CI) annual report, reflecting significant accomplishments and enforcement actions taken in fiscal year 2015.  Focusing on tax-related identity theft, money laundering, public corruption, cybercrime and terrorist financing, IRS CI initiated 3,853 cases in FY 2015. The report includes a section on the IRS Illegal Source Financial Crimes Program, which includes all, … Read More