Updates from the end of October

Even with the government shut down, agencies are still grinding away.

The Federal Reserve releases its latest version of Consumer Compliance Outlook which focuses on electronic payments, including the instant payment rails of the FedNow Service and the RTP network. Included in the issue:

• The Electronic Fund Transfer Act, Regulation E, and Instant Payment Services
• Error Resolution Procedures Under the Electronic Fund Transfer Act and Regulation E
• Consumer Liability for Unauthorized Transactions Under the Electronic Fund Transfer Act and Regulation E
• Error Resolution Under Regulation E: Examiner Insights and Common Violations
• Regulatory Calendar

Compliance Services Group offers both consulting and comprehensive compliance audits of the Electronic Fund Transfers Act (EFT). Contact us if you are interested in an audit of your processes.

The CFPB published an Interpretative Rule clarifying that the Fair Credit Reporting Act (FCRA) generally preempts state laws that attempt to regulate broad areas of credit reporting. This undoes the July 2022 Interpretative Rule that stated “that FCRA’s express preemption provisions have a narrow and targeted scope. States therefore retain substantial flexibility to pass laws involving consumer reporting to reflect emerging problems affecting their local economies and citizens.”

The CFPB also rescinded the revised rules of practice for adjudications proceedings. The CFPB said the proposed recission applied to a new deposition process, amendments concerning timing and deadlines, bifurcation of proceedings, the process for deciding dispositive motions, and requirements for issue exhaustion.

In addition, the CFPB rescinded it rule on Nonbank Persons Registry – which applied to nonbank-covered persons who are subject to court or government agency’s final public orders related to offering or providing consumer financial products or services. These “covered persons” will not have to be added to a registry maintained by the CFPB.

Resources from the week:

• Annual HMDA Filing Instruction Guide (data collected in 2025).
• SBA Debanking Compliance form letter.

Please be advised that CSG provides financial services compliance audit and consulting services to our clients.  The services that we provide include certain tasks that may be characterized as “law-related services” under Rule 5.7 of the Rules of Professional Conduct governing lawyers.  Since some of our employees are lawyers with an active bar license but are NOT engaged in the private practice of law, that Rule requires us to make disclosures clarifying that the services we perform may be law-related services, but they are not legal services.  Because they are not legal services, those services and our relationship will not be governed by the Rules of Professional Conduct that guide the client-lawyer relationship, such as rules applicable to privileged communications and prohibitions of conflicts of interest.  Notwithstanding this disclaimer, we will continue to govern our relationship with you using reasonable ethical and professional standards that are expected to meet your expectations.