On August 24, 2020 the Federal Trade Commission (FTC) issued a Notice of Proposed Rulemaking (NPRM) that would update several rules contained in the Fair Credit Reporting Act (FCRA) with provisions contained in the Dodd-Frank Act. It is important to consider that rules under the FCRA that impact auto dealers are issued by the FTC. FCRA rules that impact financial institutions are issued by the Consumer Financial Protection Bureau. The FTC issued five separate NPRMs […]
Category: Fair Credit Reporting Act
TD Bank Settlement $122 Million for Overdraft Practices
The Consumer Financial Protection Bureau (CFPB) announced a settlement with TD Bank, N.A. for $122 million – an estimated $97 million in restitution to be paid to approximately about 1.42 million consumers and a civil money penalty of $25 million, along with adjustments to the Bank’s processes. What was the reason for this hefty consent order with the CFPB? The CFPB’s consent order states that TD Bank violated the: Electronic Funds Transfer Act and Regulation […]
CARES ACT IMPACT ON CREDIT REPORTING
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) became law on March 27, 2020. On April 1, 2020 the Consumer Financial Protection Bureau (CFPB issued a statement of policy on Supervisory and Enforcement Practices Regarding the Fair Credit Reporting Act and Regulation V in Light of the CARES Act. The statement highlights furnishers’ responsibilities under the CARES Act and inform consumer reporting agencies and furnishers of the CFPB’s flexible supervisory and enforcement approach […]
EGRRCPA PROTECTIONS FOR SERVICEMEMBERS
One year ago, the Economic Growth, Regulatory Relief and Consumer Protection Act (EGRRCPA) established several new protections for servicemembers and veterans, including: Holding lenders to more stringent requirements when they participate in VA’s refinance programs Ensuring continued foreclosure protections for servicemembers up to one year after they leave active duty Prohibiting medical debt that should have been paid by the VA to be reported as part of a veteran’s credit history Providing free credit monitoring […]
GUIDANCE ON VOLUNTARY PRIVATE EDUCATION LOAN REHABILITATION PROGRAMS
On February 4, 2019 the Federal Deposit Insurance Corporation (FDIC) issued a Financial Institution letter (FIL-5-2019) dealing with voluntary private education loon rehabilitation programs. The notice was issued jointly with the Board of Governors of the Federal Reserve System (Fed). The FIL is designed to make financial institutions aware of an amendment to section 623 of the Fair Credit Reporting Act (FCRA). This amendment is contained in section 602 of the Economic, Growth, Regulatory Relief […]