RISK MANAGEMENT UPDATE Lessons [To Be] Learned from Recent Enforcement Actions

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "RISK MANAGEMENT UPDATE Lessons [To Be] Learned from Recent Enforcement Actions"

Transcription

1 RISK MANAGEMENT UPDATE Lessons [To Be] Learned from Recent Enforcement Actions Presented by: Dixie K. Hieb and Robb Schlimgen Davenport, Evans, Hurwitz & Smith, LLP Davenport, Evans, Hurwitz & Smith, LLP

2 Banking Risk Management Banking Risks Risk Management Systems -- Objectives -- Components -- Role of Board and Management Recent Enforcement Actions 2

3 BANKING RISK The potential that events, expected or unanticipated, may have a negative impact on a bank s earnings or capital. RISK! 3

4 Banking Risks Credit Interest rate Liquidity Foreign currency translation Price Transaction Compliance Strategic Reputation RISK! 4

5 Risk Management Systems Community banks today offer a wide array of new and complex products and services. Therefore, risk management systems in community banks will vary in accordance with the complexity and volume of risk a bank assumes. Comptroller s Handbook 5

6 Risk Management System Objectives Identify risk Measure risk Monitor risk Control risk 6

7 Identify Risk Risk Management Systems Existing risks Risks from new business initiatives Risks from external market forces Risks due to regulatory or statutory changes Requires continuing process Transaction and portfolio levels 7

8 Measure Risk Risk Management Systems Accurate and timely measurement Sophisticated measurement tools based on complexity Testing as to accuracy of measurement tools Transaction and portfolio levels 8

9 Monitor Risk Risk Management Systems Review of risk positions and exceptions Timely, accurate, and informative Distributed to appropriate individuals Encompass all geographies, products, and related entities 9

10 Control Risk Risk Management Systems Establish and communicate risk limits through policies, standards, and procedures that define responsibility and authority Risk limits should be subject to adjustment Authorize and document exceptions and changes to risk limits 10

11 Role of Board and Management Understand Risks Provide Appropriate Guidance Monitor Exposures Make Personnel Decisions/Delegate Senior Management Implement Policies Develop Risk Monitoring/Reporting Tools Report Risk Exposures to the Board Attract and Develop Personnel 11

12 Risk Management System Components Policies Written statement regarding commitment to certain result Set standards risk tolerances Recommend courses of action Processes Procedures, programs, and practices Imposes order on pursuit of objectives Defines how daily activities are conducted governed by checks and balances internal controls 12

13 Risk Management System Components Personnel Staff and managers that execute or oversee processes Qualified and competent Understand bank s mission, values, policies, and processes Appropriate compensation programs Control Systems Tools and information systems Measure performance Make decisions about risk Assess effectiveness of processes Feedback timely, accurate, and pertinent Appropriate to level and complexity of risk 13

14 ENFORCEMENT ACTIONS 14

15 Fair Lending Overview Fair lending - - consistent, objective and unbiased treatment of all consumers without regard to any basis prohibited by law (e.g., race, gender, age, marital status) Fair lending laws and regulations apply to: All credit products and services for both consumer and business purposes Entire loan life cycle, including servicing and collections Two primary federal laws ECOA/Regulation B Fair Housing Act ECOA FHA 15

16 Legal Theories of Discrimination Overt Discrimination: Direct evidence that lender intentionally discriminated on prohibited basis or expressed discriminatory preference, even without acting on that preference. Disparate Treatment: Circumstantial evidence that lender intentionally treated similarly situated person differently on prohibited basis. Disparate Impact: Evidence that lender applied a neutral policy or practice uniformly to all credit applicants, but policy or practice has disproportionately adverse impact on members of protected class without sufficient business justification. 16

17 Fair Lending Areas Mortgage lending Indirect auto finance (dealer finance charge participation) Student lending (cohort default rates) Servicing, collections and loss mitigation (discretionary decisions) 17

18 United States of America v. Wells Fargo Bank, NA (DOJ 2012) Taglines: Fair Lending; Discretionary Loan Pricing DOJ alleged that Bank s policies allowed discretion to: Place African-American and Hispanic borrowers in nonprime loan products, even when borrower could have qualified for prime loan product. Loan officer received higher compensation for nonprime loan. Charge African-American and Hispanic borrowers higher rates and fees on mortgages as compared to white borrowers with similar credit profiles. Mortgage brokers submitting loans to Bank s wholesale channel could vary interest rates and fees, unrelated to borrower s credit risk. DOJ charged that these policies resulted in African-American and Hispanic borrowers being placed in nonprime products with higher rates and paying higher interest rates and fees than similarly situated white borrowers. 18

19 United States of America v. Wells Fargo Bank, NA (DOJ 2012) Taglines: Fair Lending; Discretionary Loan Pricing $234.3 million in restitution $59.3 million to African-American and Hispanic retail subprime borrowers $125 million to wholesale borrowers who were allegedly steered into subprime mortgages or who allegedly paid higher fees and rates than white borrowers because of their race or national origin $50 million in direct down payment assistance to borrowers in 8 specified communities 19

20 United States of America v. Wells Fargo Bank, NA (DOJ 2012) Lessons Learned Eliminate Discretionary Pricing and Monitor Impact Prohibit lender compensation based on terms of loan Limit lender pricing discretion Permit lender-paid compensation to brokers only in set amount per loan Provide comprehensive fair lending training to management and employees 20

21 In the Matter of Ally Financial Inc. and Ally Bank (DOJ and CFPB December 2013) Taglines: Fair Lending, Indirect Auto Lending Investigation focused on ECOA violations in connection with Ally s pricing of auto retail installment contracts. Ally used proprietary underwriting model to establish buy rate reflecting minimum interest rate at which Ally would finance contract. Dealers had discretion to mark up interest rate above buy rate. Dealer mark-up was shared by Ally with dealers. 21

22 In the Matter of Ally Financial Inc. and Ally Bank (DOJ and CFPB December 2013) Taglines: Fair Lending, Indirect Auto Lending Ally violated ECOA by charging African-American, Hispanic, and Asian and Pacific Islander borrowers higher dealer markups than similarly situated non-hispanic white borrowers. Damages of $80 million to harmed borrowers Civil money penalty of $1.8 million 22

23 In the Matter of Ally Financial Inc. and Ally Bank (DOJ and CFPB December 2013) Lessons Learned Loan Policy If discretionary policy, must include: 1) Limits on maximum rate spread 2) Notices to dealers: ECOA Expectations regarding compliance Obligations regarding non-discriminatory pricing 3) Analysis of pricing disparities on prohibited basis OR Adopt non-discretionary dealer compensation plan ECOA 23

24 In the Matter of First Trust & Savings Bank (FDIC 2013) Taglines: Fair Lending, Individual Credit In connection with certain loans, First Trust & Savings Bank of Moville, Iowa, required executed Declaration of Partnership. Order does not provide details regarding content of Declaration, but it was apparently required to be executed by borrower s spouse. Order requires Bank to determine whether spouses intended to seek joint credit, release spouses who did not intend to seek joint credit, modify or re-execute loan documentation, and void and otherwise cease use of Declaration of Partnership. $12,500 civil money penalty 24

25 In the Matter of First Trust & Savings Bank (FDIC 2013) Lessons Learned Application for Individual Credit Cannot Require Information on Spouse Consider spouse only in joint credit application and loan documentation Do not require spouse s signature unless joint application or jointly owned property secures loan 25

26 United States of America v. Four Oaks Fincorp, Inc. and Four Oaks Bank and Trust Company (DOJ 2013) Taglines: Know Your Customer, Third-Party Payment Processors Operation choke point is joint effort by DOJ, FDIC, and CFPB at choking-off short-term lenders from the financial system. DOJ is scrutinizing national, regional, and community banks to determine whether they, in exchange for fee revenue, partnered with online payday lenders who engage in illegal lending practices. DOJ has issued subpoenas to more than 50 banks and payment processors, with additional subpoenas and criminal or civil actions anticipated. 26

27 United States of America v. Four Oaks Fincorp, Inc. and Four Oaks Bank and Trust Company (DOJ 2013) Taglines: Know Your Customer, Third-Party Payment Processors Four Oaks entered into 5-year agreement with third-party payment processor under which Four Oaks sponsored thirdparty payment processor so payment processor would have direct access to Federal Reserve to undertake ACH transactions. 97% of payment processor s merchants were Internet payday lenders. DOJ alleged that Bank was in a position to know that Internet payday lenders operated in manner inconsistent with federal consumer protection laws. 27

28 United States of America v. Four Oaks Fincorp, Inc. and Four Oaks Bank and Trust Company (DOJ 2013) Taglines: Know Your Customer, Third-Party Payment Processors Four Oaks ordered to engage in extensive due diligence in regards to both third-party payment processors and their merchants. Due diligence required on certain high-risk merchants as if the merchant was a direct customer. Forfeiture of $200,000 Civil money penalty of $1million 28

29 United States of America v. Four Oaks Fincorp, Inc. and Four Oaks Bank and Trust Company (DOJ 2013) Lessons Learned Develop Strong Know Your Customer Policies and Procedures Must conduct meaningful know-your-customer analysis by collecting sufficient information to determine if client poses threat of criminal or improper conduct. Examples of information banks should be collecting: Purpose of account Actual and anticipated activity Nature of client s business Client s location Types of products and services client intends to offer 29

30 United States of America v. Four Oaks Fincorp, Inc. and Four Oaks Bank and Trust Company (DOJ 2013) Lessons Learned Additional Due Diligence for Payment Processors If customer is third-party payment processor, additional due diligence is required: Review promotional materials to determine target clientele Determine whether payment processor re-sells its services Review payment processor s policies and procedures to determine adequacy of merchant due diligence Review main lines of business and return volumes for payment processor s merchants Require that payment processor provide bank with information about its merchants so bank can confirm that merchants are operating legitimate businesses 30

31 United States of America v. Four Oaks Fincorp, Inc. and Four Oaks Bank and Trust Company (DOJ 2013) Lessons Learned ACH High Risk Payday lenders Lenders located in foreign countries or affiliated with Native American tribes Difficult to identify actual merchant due to corporate structure High chargeback rates Other high-risk ACH customers include mail order and telephone order companies, telemarketing companies, illegal online gambling operations, and adult entertainment businesses 31

32 In the Matter of Discover Bank (FDIC and CFPB September 2012) Taglines: Board Oversight, Add-On Products, Telemarketing Regulators contended Discover contracted with telemarketers to conduct outbound sales calls for add-on credit card products, including Payment Protection, Identity Theft Protection, and Credit Score Tracker. Discover also used inhouse telemarketers. Telemarketing scripts contained material misrepresentations and omissions. Telemarketers spoke more rapidly when giving mandatory disclosures and downplayed disclosures. 32

33 In the Matter of Discover Bank (FDIC and CFPB September 2012) Taglines: Board Oversight, Add-On Products, Telemarketing Finding that Discover engaged in deceptive acts and practices in violation of Section 5 of FTC Act and Sections 1031 and 1036 of CFP Act Restitution of at least $200 million Civil money penalty of $14 million 33

34 In the Matter of Discover Bank (FDIC and CFPB September 2012) Lessons Learned Board Oversight Required Board of Directors must: Participate fully in oversight of compliance management system Take full responsibility for policies and procedures Ensure adequate supervision of compliance-related activities 34

35 In the Matter of Discover Bank (FDIC and CFPB September 2012) Lessons Learned Telemarketing Program When soliciting by telephone: (1) Comply with Telemarketing Sales Rule (2) Promptly state that purpose of call is to determine interest in product (3) Prior to purchase disclose total cost of product and how fees will be calculated or assessed (4) Prior to purchase disclose all material conditions, benefits, and restrictions relating to product (5) Disclose that purchase is optional 35

36 In the Matter of Discover Bank (FDIC and CFPB September 2012) Lessons Learned Telemarketing Program (6) Explain restrictions on eligibility (e.g., for Payment Protection Plan - unemployed, self-employed, pre-existing medical, etc.) (7) Make all disclosures at reasonable speed (8) Require consumer acknowledgement that purchase is voluntary and consumer wishes to purchase (9) Provide detailed post-purchase disclosures (e.g., charges, cancellation policy, refund policy) (10) Follow telephone purchase with detailed written disclosure and disclose on next 3 periodic statements 36

37 In the Matter of JP Morgan Chase Bank, N.A. and Chase Bank USA, N.A. (CFPB September 2013) Taglines: Add-On Products, Vendor Management, UDAAP CFPB contended that Chase sold Identity Protection Products as add-on feature for credit cards and to Bank customers. Chase could not provide Identity Protection Service until it had customer s written authorization to obtain customer s credit report. Chase billed customers full monthly fees even if authorization was not obtained and Chase was unable to access customer s credit report to provide Identity Protection Service. 37

38 In the Matter of JP Morgan Chase Bank, N.A. and Chase Bank USA, N.A. (CFPB September 2013) Taglines: Add-On Products, Vendor Management, UDAAP CFPB determined that Chase unfairly billed customers. Refund estimated $309 million to over 2.1 million Chase customers Civil money penalty of $20 million 38

39 In the Matter of JP Morgan Chase Bank, N.A. and Chase Bank USA, N.A. (CFPB September 2013) Lessons Learned Written UDAAP Policy for Add-On Products: 1) Require annual written analysis of: Any changes to existing add-on products that are at high risk for UDAAP Any new add-on products considered to be at high risk for UDAAP 2) Analysis must cover: Assessment of UDAAP risk for product at every stage Evaluation of adequacy of bank s internal controls and policies and procedures to identify, measure, monitor, and control UDAAP risk 39

40 In the Matter of JP Morgan Chase Bank, N.A. and Chase Bank USA, N.A. (CFPB September 2013) Lessons Learned Written UDAAP Policy for Add-On Products 3) Ongoing policies and procedures: Training of bank employees and vendor agents on federal law and bank s policies and procedures Identifying and reporting violations to bank s specified executive risk manager Ensure risk management, internal audit, and corporate compliance programs have requisite authority and status to conduct reviews to identify and remedy deficiencies 40

41 In the Matter of JP Morgan Chase Bank, N.A. and Chase Bank USA, N.A. (CFPB September 2013) Lessons Learned Vendor Management Policy Due diligence analyze vendor s ability to perform in compliance with law and bank s policies and procedures Marketing Sales Delivery Servicing Fulfillment Periodic onsight review Controls Performance Information systems 41

42 In the Matter of JP Morgan Chase Bank, N.A. and Chase Bank USA, N.A. (CFPB September 2013) Lessons Learned Vendor Management Policy (cont.) Written contract setting forth responsibilities of each party, especially: Vendor s specific performance responsibilities and duty to maintain adequate internal controls Vendor s responsibilities and duty to provide adequate training on applicable law and bank s policies and procedures Granting bank authority to conduct periodic onsite reviews of vendor s controls, performance, and information systems Bank s right to terminate contract if Vendor routinely fails to comply with contract terms 42

43 In the Matter of American Express Centurion Bank (FDIC, OCC, and CFPB December 2013) Taglines: Add-On Products, Vendor Management, Spanish Marketing Regulators contended that three American Express subsidiaries and their vendors and telemarketers sold credit card add-on products, including payment protection product called Account Protector. American Express also marketed its Lost Wallet as being able to assist card members in Puerto Rico with cancelling and replacing lost or stolen cards. 43

44 In the Matter of American Express Centurion Bank (FDIC, OCC, and CFPB December 2013) Taglines: Add-On Products, Vendor Management, Spanish Marketing Finding that (1) Bank s compliance monitoring and vendor management resulted in ineffective oversight that failed to prevent, identify, or correct improper practices, (2) Bank and its vendors and telemarketers engaged in misleading and deceptive tactics regarding payment protection products, and (3) Bank engaged in unfair billing practices for identity protection products. Restitution of approximately $59.5 million to more than 335,000 consumers Civil money penalties: CFPB $9.6 million -- FDIC $3.6 million -- OCC $3 million 44

45 In the Matter of American Express Centurion Bank (FDIC, OCC, and CFPB December 2013) Lessons Learned Spanish Marketing When marketing in language other than English: Provide uniform telemarketing scripts for those calls Provide written materials in same language 45

46 In the Matter of Bank of America, N.A. and FIA Card Services, N.A. (OCC and CFPB 2014) Taglines: Add-On Products, Vendor Management Bank of America marketed credit card add-on products, including payment protection and identity theft products. Regulators contended that (1) telemarketing scripts contained misstatements and telemarketers often went off script, making misleading sales pitches and omitting pertinent information, and (2) due to inability to obtain consumers credit reports, consumers were billed when they did not receive identity theft protection services. 46

47 In the Matter of Bank of America, N.A. and FIA Card Services, N.A. (OCC and CFPB 2014) Taglines: Add-On Products, Vendor Management CFPB Consent Order $268 million restitution to 1.4 million customers for deceptive marketing $20 million civil money penalty OCC Consent Orders $459 million restitution to 1.5 million consumers enrolled in credit monitoring products $25 million civil money penalty 47

48 In the Matter of Bank of America, N.A. and FIA Card Services, N.A. (OCC and CFPB 2014) Lessons Learned YOU SHOULD KNOW THIS BY NOW!!! 48

49 For more information contact: Dixie K. Hieb (605) Robb Schlimgen (605) Davenport, Evans, Hurwitz & Smith, LLP 49

Unfair, Deceptive or Abusive Acts or Practices Act (UDAAP)..It May Not Be What You Think

Unfair, Deceptive or Abusive Acts or Practices Act (UDAAP)..It May Not Be What You Think Unfair, Deceptive or Abusive Acts or Practices Act (UDAAP)..It May Not Be What You Think November 15, 2012 Mary Thorson VP, Chartwell Compliance/ICBA CRM I. UDAAP Overview Background II. UDAAP An emerging

More information

Regulatory Practice Letter January 2013 RPL 13-01

Regulatory Practice Letter January 2013 RPL 13-01 Regulatory Practice Letter January 2013 RPL 13-01 Fair Lending CFPB Annual Report and Supervisory Highlights Executive Summary In December 2012, the Bureau of Consumer Financial Protection ( CFPB or Bureau

More information

Takeaways From GE Capital's $225M Credit Card Settlement

Takeaways From GE Capital's $225M Credit Card Settlement Portfolio Media. Inc. 860 Broadway, 6th Floor New York, NY 10003 www.law360.com Phone: +1 646 783 7100 Fax: +1 646 783 7161 customerservice@law360.com Takeaways From GE Capital's $225M Credit Card Settlement

More information

GUIDANCE FOR MANAGING THIRD-PARTY RISK

GUIDANCE FOR MANAGING THIRD-PARTY RISK GUIDANCE FOR MANAGING THIRD-PARTY RISK Introduction An institution s board of directors and senior management are ultimately responsible for managing activities conducted through third-party relationships,

More information

Fair Lending, UDAAP and CRA: Protecting Your Bank from Allegations of Fair and Responsible Lending Violations

Fair Lending, UDAAP and CRA: Protecting Your Bank from Allegations of Fair and Responsible Lending Violations Fair Lending, UDAAP and CRA: Protecting Your Bank from Allegations of Fair and Responsible Lending Violations Albany, NY April 23, 2015 Legal Counsel to the Financial Services Industry Presented by Warren

More information

Supervisory Highlights

Supervisory Highlights Supervisory Highlights Spring 2014 Table of contents Table of contents... 2 1. Introduction... 3 2. Supervisory observations... 5 2.1 Consumer reporting... 8 2.2 Debt collection... 11 2.3 Short-term, small-dollar

More information

CFPB Examination Procedures

CFPB Examination Procedures Equal Credit Opportunity Act Baseline Review Modules Exam Date: Prepared By: Reviewer: Docket #: Entity Name: The Equal Credit Opportunity Act () Baseline Review Modules will be used by examiners during

More information

Payment Processor Relationships Revised Guidance

Payment Processor Relationships Revised Guidance Federal Deposit Insurance Corporation 550 17th Street NW, Washington, D.C. 20429-9990 Payment Processor Relationships Revised Guidance Financial Institution Letter FIL-3-2012 January 31, 2012 Summary:

More information

Supervisory Highlights. Summer 2013

Supervisory Highlights. Summer 2013 Supervisory Highlights Summer 2013 Table of Contents 1. Introduction... 3 2. Supervisory Observations... 5 2.1 Compliance Management Systems... 5 2.2 Mortgage Servicing... 11 2.3 Fair Lending Provision

More information

CFPB. Nature and Structure of Products

CFPB. Nature and Structure of Products The sections below include (1) factors that specifically increase the risk that unfair, deceptive, abusive acts or practices, discrimination, or other violations of Federal consumer financial law will

More information

Notwithstanding little guidance from the CFPB, expect more UDAAP enforcement actions now that the presidential election is over

Notwithstanding little guidance from the CFPB, expect more UDAAP enforcement actions now that the presidential election is over Notwithstanding little guidance from the CFPB, expect more UDAAP enforcement actions now that the presidential election is over By Martin J. Bishop and Rebecca R. Hanson Thomson Reuters News & Insight

More information

CFPB Focus. Five Questions to Ask Before January 10, 2014

CFPB Focus. Five Questions to Ask Before January 10, 2014 Five Questions to Ask Before January 10, 2014 Courtney H. Gilmer, 615.726.5747, cgilmer@bakerdonelson.com 1. Compliance Procedures. Have you updated your written policies and procedures for each of your

More information

THIRD PARTY PAYMENT PROVIDERS

THIRD PARTY PAYMENT PROVIDERS THIRD PARTY PAYMENT PROVIDERS BY DARLIA FOGARTY, DIRECTOR OF COMPLIANCE & COO KNOWLEDGE. CLARITY. RELIABILITY. www.compliancealliance.com (888) 353-3933 THIRD PARTY PAYMENT PROCESSORS Third Party Payment

More information

Any business relationship between a bank and another entity, by contract or otherwise

Any business relationship between a bank and another entity, by contract or otherwise An Overview for Bank Directors Managing the Third Party Relationship Patrick Neuman Boardman & Clark LLP Madison, Wisconsin Any business relationship between a bank and another entity, by contract or otherwise

More information

Fair Lending Overview. Division of Depositor and Consumer Protection

Fair Lending Overview. Division of Depositor and Consumer Protection Fair Lending Overview Fair Lending Regulations Equal Credit Opportunity Act (ECOA) Prohibits discrimination in any aspect of a consumer or commercial credit transaction Fair Housing Act (FHA) Prohibits

More information

Vendor Risk Management Compliance Considerations

Vendor Risk Management Compliance Considerations Vendor Risk Management Compliance Considerations Outlook Live Webinar May 2, 2012 Ariane Smith, Senior Compliance Manager Cathryn Judd, Compliance Examiner Mark Jennings, Compliance Examiner Visit us at

More information

CFSA Compliance School, Part II: Implementing an Effective Compliance Management System

CFSA Compliance School, Part II: Implementing an Effective Compliance Management System CFSA Compliance School, Part II: Implementing an Effective Compliance Management System Michelle Hemerley Managing Director FIS Enterprise Governance, Risk & Compliance (EGRC) SoluBon February 2014 Overview

More information

Susan Costonis, C.R.C.M. Compliance Training & Consulting for Financial Institutions

Susan Costonis, C.R.C.M. Compliance Training & Consulting for Financial Institutions The Directors Education Series Fair Lending Training for the Board of Directors Part I Presented by: Susan Costonis, C.R.C.M. Compliance Training & Consulting for Financial Institutions YOUR PRESENTER

More information

VII 4.1. VII. Unfair and Deceptive Practices Third Party Risk. Third Party Risk. Introduction. Background

VII 4.1. VII. Unfair and Deceptive Practices Third Party Risk. Third Party Risk. Introduction. Background Third Party Risk Introduction The board of directors and senior management of an insured depository institution (institution) are ultimately responsible for managing activities conducted through third-party

More information

Indirect Auto Lending and Compliance with the Equal Credit Opportunity Act

Indirect Auto Lending and Compliance with the Equal Credit Opportunity Act CFPB Bulletin 2013-02 Date: March 21, 2013 Subject: Indirect Auto Lending and Compliance with the Equal Credit Opportunity Act This bulletin provides guidance about compliance with the fair lending requirements

More information

Table of Contents... 1. Chapter 1 Introduction... 5. 1.1 Goals & Objectives... 5 1.2 Required Review... 5 1.3 Applicability...

Table of Contents... 1. Chapter 1 Introduction... 5. 1.1 Goals & Objectives... 5 1.2 Required Review... 5 1.3 Applicability... ... 1 Chapter 1 Introduction... 5 1.1 Goals & Objectives... 5 1.2 Required Review... 5 1.3 Applicability... 5 Chapter 2 Company Culture... 6 Chapter 3 Risk Management Governance... 7 3.1 Board of Directors...

More information

VIRGINIA ASSOCIATION OF COMMUNITY BANKS

VIRGINIA ASSOCIATION OF COMMUNITY BANKS VIRGINIA ASSOCIATION OF COMMUNITY BANKS Spring Internal Audit / Risk Seminar Presented by Lee G. Lester May 26, 2016 Regulatory Hot Topics > De-Risking > Marketplace Lending > Consumer protection initiatives

More information

FDIC Updates Guidance on Payment Processor Relationships

FDIC Updates Guidance on Payment Processor Relationships February 2012 FDIC Updates Guidance on Payment Processor Relationships BY KEVIN L. PETRASIC In its recently issued Financial Institution Letter, FIL-3-2012, the Federal Deposit Insurance Corporation (

More information

Disparate Impact Considerations for Private Education Loans

Disparate Impact Considerations for Private Education Loans Disparate Impact Considerations for Private Education Loans Arthur J. Rotatori, Esq. McGlinchey Stafford 25550 Chagrin Blvd., Suite 406 Cleveland, Ohio 44122 (216) 378-9932 arotatori@mcglinchey.com Fair

More information

Fair Lending Report of the Consumer Financial Protection Bureau

Fair Lending Report of the Consumer Financial Protection Bureau Fair Lending Report of the Consumer Financial Protection Bureau April 2015 Message from Richard Cordray Director of the CFPB The Consumer Financial Protection Bureau (the Bureau or CFPB) is the nation

More information

CFPB COMPLIANCE: Interaction Between Compliance Assessments and Systems Issues

CFPB COMPLIANCE: Interaction Between Compliance Assessments and Systems Issues CFPB COMPLIANCE: Interaction Between Compliance Assessments and Systems Issues Presented by: Stefanie H. Jackman Consumer Financial Services Group 678.420.9490 jackmans@ballardspahr.com Trevor Salter Consumer

More information

Fair Lending Analysis Made Easy. Presented by: Ian Dunn CEO,

Fair Lending Analysis Made Easy. Presented by: Ian Dunn CEO, Fair Lending Analysis Made Easy Presented by: Ian Dunn CEO, Agenda 1 The Basics 2 Assessing Your Potential Fair Lending Risk Exposure 3 Key Fair Lending Analysis & Reporting The Basics- Fair Lending Laws

More information

American Bar Association Consumer Financial Services Young Lawyers Subcommittee. September 10, 2014

American Bar Association Consumer Financial Services Young Lawyers Subcommittee. September 10, 2014 A Survey of Activities Identified as Unfair, Deceptive, or Abusive by the CFPB by Adam D. Maarec, Davis Wright Tremaine LLP John C. Morton, Gordon Feinblatt LLC American Bar Association Consumer Financial

More information

The final rule has expanded the scope of covered products how does this impact your business?

The final rule has expanded the scope of covered products how does this impact your business? January 2016 Military Lending Act It s time to get prepared The final rule has expanded the scope of covered products how does this impact your business? Overview A joint point of view by PwC s Consumer

More information

Why the Road to Financial Services Operational Excellence Is Paved with Internal Controls

Why the Road to Financial Services Operational Excellence Is Paved with Internal Controls Why the Road to Financial Services Operational Excellence Is Paved with Internal Controls Overview Heightened oversight by regulatory bodies combined with demands for greater transparency and consumer

More information

CFPB Examination Procedures

CFPB Examination Procedures Commonly Known as Payday Lending These examination procedures apply to the short-term, small-dollar credit market, commonly known as payday lending. The procedures are comprised of modules covering a payday

More information

WASHINGTON, D.C. The Federal Deposit Insurance Corporation ("FDIC") is the appropriate Federal banking

WASHINGTON, D.C. The Federal Deposit Insurance Corporation (FDIC) is the appropriate Federal banking Filed 9/24/rt 1 ~ Received BY.. ~1/f.-;r OAADOC CLE~.. FEDERAL DEPOSIT INSURANCE CORPORATION I CONSUMER FINANCIAL PROTECTION BUREAU WASHINGTON, D.C. ) In the Matter of ) ) DISCOVER BANK ) GREENWOOD, DELAWARE

More information

2014 National Update: Service Contracts Ancillary Products

2014 National Update: Service Contracts Ancillary Products 2014 National Update: Service Contracts Ancillary Products Timothy J. Meenan General Counsel to Service Contract Industry Council Motor Vehicle Ancillary Products Association Meenan PA Managing Shareholder

More information

Regulatory Practice Letter December 2012 RPL 12-24

Regulatory Practice Letter December 2012 RPL 12-24 Regulatory Practice Letter December 2012 RPL 12-24 CFPB Nonbank Supervision - Larger Participants for Debt Collection and Credit Reporting Final Rules Executive Summary In February 2012, the Bureau of

More information

High-Risk Areas, Common Compliance Violations, and CMPs: Solutions and Tips. FDIC Compliance Examiner John George April 25, 2013

High-Risk Areas, Common Compliance Violations, and CMPs: Solutions and Tips. FDIC Compliance Examiner John George April 25, 2013 High-Risk Areas, Common Compliance Violations, and CMPs: Solutions and Tips FDIC Compliance Examiner John George April 25, 2013 Overview HMDA Errors and Mitigating Strategies Fair Lending Issues Other

More information

VII 5.1. VII. Abusive Practices Third Party Procedures. Third Party Risk. Introduction. Background

VII 5.1. VII. Abusive Practices Third Party Procedures. Third Party Risk. Introduction. Background Third Party Risk Introduction The board of directors and senior management of an insured depository institution (institution) are ultimately responsible for managing activities conducted through third-party

More information

2013 Interagency Fair Lending Hot Topics

2013 Interagency Fair Lending Hot Topics 2013 Interagency Fair Lending Hot Topics Outlook Live Webinar October 24, 2013 Non-Discrimination Working Group of the Financial Fraud Enforcement Task Force Visit us at www.consumercomplianceoutlook.org

More information

Navigating Consumer Financial Protection Bureau ( CFPB ) Investigations and Enforcement Actions

Navigating Consumer Financial Protection Bureau ( CFPB ) Investigations and Enforcement Actions Navigating Consumer Financial Protection Bureau ( CFPB ) Investigations and Enforcement Actions Section of Antitrust Law 2013 Spring Meeting Wednesday, April 10, 2013 Jonathan L. Pompan Partner, Co-Chair

More information

Hot Topics in Fair Lending

Hot Topics in Fair Lending Hot Topics in Fair Lending Andrea J. Shaw, Counsel, TD Bank James Cohen, Partner, Verrill Dana, LLP 1 April 2012 Fair Lending: Basic to How Banks Offer Mortgages to Public Issue: Whether a lender is improperly

More information

FEDERAL DEPOSIT INSURANCE CORPORATION WASHINGTON, D.C.

FEDERAL DEPOSIT INSURANCE CORPORATION WASHINGTON, D.C. FEDERAL DEPOSIT INSURANCE CORPORATION WASHINGTON, D.C. In the Matter of THE BANCORP BANK WILMINGTON, DELAWARE (INSURED STATE NONMEMBER BANK) CONSENT ORDER AND ORDER TO PAY CIVIL MONEY PENALTY FDIC-11-698b

More information

COMMENTARY. occ and fdic Guidance on Supervisory Concerns and Expectations Regarding Deposit Advance Products JONES DAY

COMMENTARY. occ and fdic Guidance on Supervisory Concerns and Expectations Regarding Deposit Advance Products JONES DAY December 2013 JONES DAY COMMENTARY occ and fdic Guidance on Supervisory Concerns and Expectations Regarding Deposit Advance Products The Office of the Comptroller of the Currency ( OCC ) and the Federal

More information

In This Presentation:

In This Presentation: The U.S. Department of Justice and banking regulators have stepped up the pace of criminal, civil and administrative actions against banks, payment processors, money transmitters, and other financial institutions,

More information

Putting the Management Back in Vendor Management February 20, 2014

Putting the Management Back in Vendor Management February 20, 2014 Putting the Management Back in Vendor Management February 20, 2014 Moderator: Brian O Reilly The Collingwood Group, LLC Panelists: Calvin Hagins, CFPB Ken Markison, MBA Jonathan McKernan, Wilmer Hale Dan

More information

CLIENT UPDATE THE CFPB ISSUES BULLETIN ON INDIRECT AUTO LENDING AND COMPLIANCE WITH THE EQUAL CREDIT OPPORTUNITY ACT

CLIENT UPDATE THE CFPB ISSUES BULLETIN ON INDIRECT AUTO LENDING AND COMPLIANCE WITH THE EQUAL CREDIT OPPORTUNITY ACT CLIENT UPDATE THE CFPB ISSUES BULLETIN ON INDIRECT AUTO LENDING AND COMPLIANCE WITH THE EQUAL CREDIT OPPORTUNITY ACT NEW YORK Mary Beth Hogan mbhogan@debevoise.com Eric P. Alpert epalpert@debevoise.com

More information

Fair Credit Compliance POLICY & PROGRAM

Fair Credit Compliance POLICY & PROGRAM Fair Credit Compliance POLICY & PROGRAM Table of Contents Overview of Fair Credit Policy & Fair Credit Compliance Program Templates 1 Instructions for Completing Fair Credit Policy & Fair Credit Compliance

More information

First Actions of the Consumer Financial Protection Bureau

First Actions of the Consumer Financial Protection Bureau 2013-2014 DEVELOPMENTS IN BANKING LAW 453 IV. First Actions of the Consumer Financial Protection Bureau A. Introduction The Consumer Financial Protection Bureau ( CFPB ) was formed in 2011, pursuant to

More information

TO: Chief Executive Officers of All National Banks, Department and Division Heads, and All Examining Personnel

TO: Chief Executive Officers of All National Banks, Department and Division Heads, and All Examining Personnel AL 2000 11 O OCC ADVISORY LETTER Comptroller of the Currency Administrator of National Banks Subject: Title Loan Programs TO: Chief Executive Officers of All National Banks, Department and Division Heads,

More information

What Lead Generators Need to Know About the Consumer Financial Protection Bureau (CFPB)

What Lead Generators Need to Know About the Consumer Financial Protection Bureau (CFPB) What Lead Generators Need to Know About the Consumer Financial Protection Bureau (CFPB) LeadsCon March 18, 2013 Mirage Hotel & Casino, Las Vegas, NV Jonathan L. Pompan Venable LLP 1 Agenda for Today What

More information

OPERATION CHOKE POINT AND THE BRAVE NEW WORLD OF CRIMINAL LIABILITY

OPERATION CHOKE POINT AND THE BRAVE NEW WORLD OF CRIMINAL LIABILITY OPERATION CHOKE POINT AND THE BRAVE NEW WORLD OF CRIMINAL LIABILITY Presented by: Jeffrey B. Coopersmith, Davis Wright Tremaine Jonny Frank, StoneTurn Group Discussion Points What is Operation Choke Point?

More information

Enforcement and Compliance Fall 2015 Update

Enforcement and Compliance Fall 2015 Update Enforcement and Compliance Fall 2015 Update DEPARTMENT OF JUSTICE ANNOUNCES SETTLEMENT WITH CALIFORNIA BANK March 11, 2015 The Department of Justice has settled civil and criminal charges against CommerceWest

More information

Fair Lending Update. 2012 Banker Outreach Program

Fair Lending Update. 2012 Banker Outreach Program Fair Lending Update 2012 Banker Outreach Program Fair Lending Discussion Topics: Fair Lending High Risks Areas Pricing and Underwriting Examination Focus and Procedures How to Conduct a Comparative Analysis

More information

Chief Executive Officers of All National Banks, Department and Division Heads, and All Examining Personnel.

Chief Executive Officers of All National Banks, Department and Division Heads, and All Examining Personnel. AL 2000 9 O OCC ADVISORY LETTER Comptroller of the Currency Administrator of National Banks Subject: Third-Party Risk TO: Chief Executive Officers of All National Banks, Department and Division Heads,

More information

The Attorney General s 2014 Annual Report to Congress Pursuant to the Equal Credit Opportunity Act Amendments of 1976 Submitted by

The Attorney General s 2014 Annual Report to Congress Pursuant to the Equal Credit Opportunity Act Amendments of 1976 Submitted by The Attorney General s 2014 Annual Report to Congress Pursuant to the Equal Credit Opportunity Act Amendments of 1976 Submitted by Vanita Gupta Acting Assistant Attorney General Civil Rights Division April

More information

Consumer Affairs Laws Section 1380 and Regulations

Consumer Affairs Laws Section 1380 and Regulations Insurance Consumer Protection The Gramm-Leach-Bliley Financial Services Modernization Act (the Act) was enacted on November 12, 1999. Section 305 of the Act required the federal banking agencies (the Agencies)

More information

UNFAIR, DECEPTIVE, OR ABUSIVE ACTS OR PRACTICES (UDAAP)

UNFAIR, DECEPTIVE, OR ABUSIVE ACTS OR PRACTICES (UDAAP) UNFAIR, DECEPTIVE, OR ABUSIVE ACTS OR PRACTICES (UDAAP) EXAMINATION PROCEDURES Examination Objectives To assess the quality of the credit union s compliance risk management systems, including internal

More information

Avoiding Predatory and Abusive Lending Practices in Brokered and Purchased Loans

Avoiding Predatory and Abusive Lending Practices in Brokered and Purchased Loans AL 2003-3 O OCC ADVISORY LETTER Comptroller of the Currency Administrator of National Banks Subject: Avoiding Predatory and Abusive Lending Practices in Brokered and Purchased Loans TO: Chief Executive

More information

Minimizing Legal and Compliance Risk for Credit Furnishers

Minimizing Legal and Compliance Risk for Credit Furnishers Minimizing Legal and Compliance Risk for Credit Furnishers Wednesday, November 18, 2015 2:00 p.m. 3:00 p.m. EST Webinar Speakers Jonathan L. Pompan, Esq., Partner and Co-Chair Consumer Financial Protection

More information

Vendor Management: Who the CFPB is Watching and Who They Are Expecting You to be Watching

Vendor Management: Who the CFPB is Watching and Who They Are Expecting You to be Watching Vendor Management: Who the CFPB is Watching and Who They Are Expecting You to be Watching John Barnes 713.210.7441 jbarnes@bakerdonelson.com Jessica Hinkie 713.210.7405 jhinkie@bakerdonelson.com Kat Statman

More information

A Field Guide to Taming It has been nearly 10 years since the unfair,

A Field Guide to Taming It has been nearly 10 years since the unfair, By Meg Sczyrba, CRCM, and Phillip R. Rick Freer, Jr., CRCM A Field Guide to Taming It has been nearly 10 years since the unfair, deceptive or abusive acts or practices (UDAAP) beast was first hatched and

More information

CONFERENCE OF STATE BANK SUPERVISORS AMERICAN ASSOCIATION OF RESIDENTIAL MORTGAGE REGULATORS NATIONAL ASSOCIATION OF CONSUMER CREDIT ADMINISTRATORS

CONFERENCE OF STATE BANK SUPERVISORS AMERICAN ASSOCIATION OF RESIDENTIAL MORTGAGE REGULATORS NATIONAL ASSOCIATION OF CONSUMER CREDIT ADMINISTRATORS CONFERENCE OF STATE BANK SUPERVISORS AMERICAN ASSOCIATION OF RESIDENTIAL MORTGAGE REGULATORS NATIONAL ASSOCIATION OF CONSUMER CREDIT ADMINISTRATORS STATEMENT ON SUBPRIME MORTGAGE LENDING I. INTRODUCTION

More information

Banker s Guide To Risk-Based Fair Lending Examinations

Banker s Guide To Risk-Based Fair Lending Examinations Banker s Guide To Risk-Based Fair Lending Examinations RESERVE BANK OF FEDERAL CHICAGO INCORPORATED 1914 MAY 18, Introduction Banker s Guide To Risk-Based Fair Lending This publication is a guide to the

More information

CONFERENCE OF STATE BANK SUPERVISORS AMERICAN ASSOCIATION OF RESIDENTIAL MORTGAGE REGULATORS NATIONAL ASSOCIATION OF CONSUMER CREDIT ADMINISTRATORS

CONFERENCE OF STATE BANK SUPERVISORS AMERICAN ASSOCIATION OF RESIDENTIAL MORTGAGE REGULATORS NATIONAL ASSOCIATION OF CONSUMER CREDIT ADMINISTRATORS CONFERENCE OF STATE BANK SUPERVISORS AMERICAN ASSOCIATION OF RESIDENTIAL MORTGAGE REGULATORS NATIONAL ASSOCIATION OF CONSUMER CREDIT ADMINISTRATORS STATEMENT ON SUBPRIME MORTGAGE LENDING I. INTRODUCTION

More information

UNIVERSAL INSURANCE HOLDINGS, INC. CODE OF BUSINESS CONDUCT AND ETHICS. Revised as of March 3, 2014

UNIVERSAL INSURANCE HOLDINGS, INC. CODE OF BUSINESS CONDUCT AND ETHICS. Revised as of March 3, 2014 I. Statement of Policy UNIVERSAL INSURANCE HOLDINGS, INC. CODE OF BUSINESS CONDUCT AND ETHICS Revised as of March 3, 2014 Universal Insurance Holdings, Inc. ( UIH ) and its subsidiaries (collectively,

More information

The CFPB's 'UDAAPification' Of Consumer Protection Law

The CFPB's 'UDAAPification' Of Consumer Protection Law Portfolio Media. Inc. 860 Broadway, 6th Floor New York, NY 10003 www.law360.com Phone: +1 646 783 7100 Fax: +1 646 783 7161 customerservice@law360.com The CFPB's 'UDAAPification' Of Consumer Protection

More information

Please see Section IX. for Additional Information:

Please see Section IX. for Additional Information: The Florida Senate BILL ANALYSIS AND FISCAL IMPACT STATEMENT (This document is based on the provisions contained in the legislation as of the latest date listed below.) BILL: CS/SB 626 Prepared By: The

More information

Examination Procedures

Examination Procedures After completing the risk assessment and examination scoping, examiners should use these procedures, in conjunction with the compliance management system review procedures, to conduct an education loan

More information

CFPB lets lenders decide the fate of auto dealer rate mark ups but outlines its expectations

CFPB lets lenders decide the fate of auto dealer rate mark ups but outlines its expectations www.pwc.com/consumerfinance www.pwcregulatory.com CFPB lets lenders decide the fate of auto dealer rate mark ups but outlines its expectations April 2013 A joint point of view by PwC s Financial Services

More information

Client Update CFPB Issues Final Auto Finance Larger Participant Rule and New Auto Finance Examination Procedures

Client Update CFPB Issues Final Auto Finance Larger Participant Rule and New Auto Finance Examination Procedures 1 Client Update CFPB Issues Final Auto Finance Larger Participant Rule and New Auto Finance Examination Procedures NEW YORK Matthew L. Biben mlbiben@debevoise.com Courtney M. Dankworth cmdankworth@debevoise.com

More information

OCC 97-24 OCC BULLETIN

OCC 97-24 OCC BULLETIN OCC 97-24 OCC BULLETIN Comptroller of the Currency Administrator of National Banks Subject: Credit Scoring Models Description: Examination Guidance TO: Chief Executive Officers of all National Banks, Department

More information

Regulatory Compliance - What You Need to Know. John Zasada Principal CliftonLarsonAllen 218 790 1086 John.zasada@claconnect.com

Regulatory Compliance - What You Need to Know. John Zasada Principal CliftonLarsonAllen 218 790 1086 John.zasada@claconnect.com Regulatory Compliance - What You Need to Know John Zasada Principal CliftonLarsonAllen 218 790 1086 John.zasada@claconnect.com Compliance Risk Defense or move forward It exists for all FIs Identify, rank,

More information

3 rd Party Risk Management is Broken Critical Vendors Should be Exam-Ready.

3 rd Party Risk Management is Broken Critical Vendors Should be Exam-Ready. 3 rd Party Risk Management is Broken Critical Vendors Should be Exam-Ready. Abstract: Kudos to the FFIEC agencies efforts to bring more attention and effort to managing 3rd party risk. With so much focus

More information

Regulatory Practice Letter May 2014 RPL 14-09

Regulatory Practice Letter May 2014 RPL 14-09 Regulatory Practice Letter May 2014 RPL 14-09 Payday Lending CFPB Data Point Report Executive Summary The Consumer Financial Protection Bureau (CFPB or Bureau) recently released a report presenting the

More information

CFPB Update: Regulatory and Enforcement Developments

CFPB Update: Regulatory and Enforcement Developments CFPB Update: Regulatory and Enforcement Developments December 16, 2014, 12:30 1:30 pm ET American Law Institute Webinar Jonathan L. Pompan Alexandra Megaris 1 Agenda Supervision and Examinations What is

More information

STATE OF NEW JERSEY DEPARTMENT OF BANKING AND INSURANCE STATEMENT ON SUBPRIME MORTGAGE LENDING

STATE OF NEW JERSEY DEPARTMENT OF BANKING AND INSURANCE STATEMENT ON SUBPRIME MORTGAGE LENDING STATE OF NEW JERSEY DEPARTMENT OF BANKING AND INSURANCE STATEMENT ON SUBPRIME MORTGAGE LENDING I. INTRODUCTION AND BACKGROUND On June 29, 2007, the Federal Deposit Insurance Corporation (FDIC), the Board

More information

Board of Directors and Management Oversight

Board of Directors and Management Oversight Board of Directors and Management Oversight Examination Procedures Examiners should request/ review records, discuss issues and questions with senior management. With respect to board and senior management

More information

American Bar Association Consumer Financial Services Young Lawyers Subcommittee. January 3, 2014

American Bar Association Consumer Financial Services Young Lawyers Subcommittee. January 3, 2014 A Survey of Activities Identified as Unfair, Deceptive, or Abusive by the CFPB 1 by Adam D. Maarec, McIntyre & Lemon, PLLC John C. Morton, Gordon Feinblatt LLC American Bar Association Consumer Financial

More information

A Hard Rain Has Started to Fall, A Product-by-Product Review of the CFPB s First 60 Enforcement Actions

A Hard Rain Has Started to Fall, A Product-by-Product Review of the CFPB s First 60 Enforcement Actions November 12, 2014 Practice Groups: Consumer Financial Services; Government Enforcement; Global Government Solutions For more news and developments related to consumer financial products and services, please

More information

UNFAIR, DECEPTIVE, OR ABUSIVE ACTS OR PRACTICES (UDAAP)

UNFAIR, DECEPTIVE, OR ABUSIVE ACTS OR PRACTICES (UDAAP) UNFAIR, DECEPTIVE, OR ABUSIVE ACTS OR PRACTICES (UDAAP) OVERVIEW Unfair, deceptive, or abusive acts and practices (UDAAPs) can cause significant financial injury to consumers, erode consumer confidence,

More information

Regulatory Practice Letter April 2013 RPL 13-09

Regulatory Practice Letter April 2013 RPL 13-09 Regulatory Practice Letter April 2013 RPL 13-09 CFPB Nonbank Supervision Larger Participants for Student Loan Servicing Proposed Rule Executive Summary The Bureau of Consumer Financial Protection (CFPB

More information

Unfair or Deceptive Acts or Practices by State-Chartered Banks March 11, 2004

Unfair or Deceptive Acts or Practices by State-Chartered Banks March 11, 2004 Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation Unfair or Deceptive Acts or Practices by State-Chartered Banks March 11, 2004 Purpose The Board of Governors of the

More information

CFPB Consumer Laws and Regulations

CFPB Consumer Laws and Regulations General Principles and Introduction Supervised entities within the scope of CFPB s supervision and enforcement authority include both depository institutions and non-depository consumer financial services

More information

Payment Systems: Regulatory Interest in Payment Processors, Faster Payments, and Related Consumer Protections

Payment Systems: Regulatory Interest in Payment Processors, Faster Payments, and Related Consumer Protections July 2015 RPL15-04 Payment Systems: Regulatory Interest in Payment Processors, Faster Payments, and Related Consumer Protections Executive Summary The expansion of the Internet and the growth in electronic

More information

Anti-Money Laundering Program and Suspicious Activity Reporting Requirements For Insurance Companies. Frequently Asked Questions

Anti-Money Laundering Program and Suspicious Activity Reporting Requirements For Insurance Companies. Frequently Asked Questions Anti-Money Laundering Program and Suspicious Activity Reporting Requirements For Insurance Companies Frequently Asked Questions We are providing the following Frequently Asked Questions to assist insurance

More information

Third-Party Payment Processing and Financial Crimes March 14, 2012

Third-Party Payment Processing and Financial Crimes March 14, 2012 Third-Party Payment Processing and Financial Crimes March 14, 2012 Michael Benardo Chief, Cyber Fraud & Financial Crimes Section Division of Risk Management Supervision Federal Deposit Insurance Corporation

More information

a. employees Company; or

a. employees Company; or Code of Busines ss Conduct and Ethics 1. Introduction a. This Code of Business Conduct and Ethics (the Code ) applies to all directors, officers, employees and third parties employed or directly engaged

More information

Executive Fraud Forum October 30, 2013

Executive Fraud Forum October 30, 2013 Executive Fraud Forum October 30, 2013 Payments Fraud Trends Mary Kepler, Director, Retail Payments Risk Forum, Federal Reserve Bank of Atlanta Judy Long, Executive Vice President, First Citizens National

More information

211 CMR: DIVISION OF INSURANCE 211 CMR 142.00: INSURANCE SALES BY BANKS AND CREDIT UNIONS

211 CMR: DIVISION OF INSURANCE 211 CMR 142.00: INSURANCE SALES BY BANKS AND CREDIT UNIONS 211 CMR 142.00: INSURANCE SALES BY BANKS AND CREDIT UNIONS Section 142.01: Scope and Purpose 142.02: Applicability 142.03: Definitions 142.04: Licensing 142.05: Consumer Protection Terms and Conditions

More information

Regulatory Practice Letter February 2014 RPL 14-05

Regulatory Practice Letter February 2014 RPL 14-05 Regulatory Practice Letter February 2014 RPL 14-05 CFPB Nonbank Supervision of International Money Transfer Providers Proposed Rule Executive Summary The Consumer Financial Protection Bureau (CFPB or Bureau)

More information

UNITED STATES OF AMERICA BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D.C.

UNITED STATES OF AMERICA BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D.C. UNITED STATES OF AMERICA BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D.C. In the Matter of Docket No. 15-008-B-HC 15-008-CMP-HC CITIGROUP INC. New York, New York Order to Cease

More information

COMING OUT SWINGING: CONSUMER FINANCIAL PROTECTION BUREAU S FIRST ENFORCEMENT ACTIONS PACK A PUNCH FOR THE CREDIT CARD INDUSTRY

COMING OUT SWINGING: CONSUMER FINANCIAL PROTECTION BUREAU S FIRST ENFORCEMENT ACTIONS PACK A PUNCH FOR THE CREDIT CARD INDUSTRY COMING OUT SWINGING: CONSUMER FINANCIAL PROTECTION BUREAU S FIRST ENFORCEMENT ACTIONS PACK A PUNCH FOR THE CREDIT CARD INDUSTRY Hanah Harris-Yager Student Fellow Institute for Consumer Antitrust Studies

More information

Short-Term, Small-Dollar Lending

Short-Term, Small-Dollar Lending Commonly Known as Payday Lending Exam Date: Prepared By: Reviewer: Docket #: Entity Name: [Click&type] [Click&type] [Click&type] [Click&type] [Click&type] These examination procedures apply to the short-term,

More information

Overview of Financial Products and Consumer Protections

Overview of Financial Products and Consumer Protections Overview of Financial Products and Consumer Protections Presented by the Consumer and Mortgage Lending Division, House Financial Institutions Committee January 23, 2014 Role of the CML Division The Consumer

More information

VII 3.1. VII. Unfair and Deceptive Practices FDCPA. Fair Debt Collection Practices Act. Introduction. Communications Connected with Debt Collection

VII 3.1. VII. Unfair and Deceptive Practices FDCPA. Fair Debt Collection Practices Act. Introduction. Communications Connected with Debt Collection Fair Debt Collection Practices Act Introduction The Fair Debt Collection Practices Act (FDCPA), effective in 1978, was designed to eliminate abusive, deceptive, and unfair debt collection practices. The

More information

Third-Party Risk Management: Busting Myths and Telling Truths

Third-Party Risk Management: Busting Myths and Telling Truths Third-Party Risk Management: Busting Myths and Telling Truths Richik Sarkar, Esq. McDonald Hopkins LLC 600 Superior Avenue, East, Suite 2100 Cleveland, OH 44114 (216) 430-2009 rsarkar@mcdonaldhopkins.com

More information

UDAP and UDAAP What Do You Need to Know?

UDAP and UDAAP What Do You Need to Know? UDAP and UDAAP What Do You Need to Know? Amy Avitable Director of Regulatory Compliance, TCS BaNCS No Legal Advice, Opinions, or Services Provided This presentation does not constitute legal advice 1 Amy

More information

Managing TPPPs and TPSs in the Current Regulatory Environment

Managing TPPPs and TPSs in the Current Regulatory Environment November 2015 Managing TPPPs and TPSs in the Current Regulatory Environment Prepared by: Jodie Ruby, Director Audience: This document is intended for managers, directors and executives who deal with business

More information

GUIDANCE ON PAYMENT PROCESSOR RELATIONSHIPS (Revised July 2014)

GUIDANCE ON PAYMENT PROCESSOR RELATIONSHIPS (Revised July 2014) Federal Deposit Insurance Corporation 550 17th Street NW, Washington, D.C. 20429-9990 Financial Institution Letter FIL-127-2008 November 7, 2008 GUIDANCE ON PAYMENT PROCESSOR RELATIONSHIPS (Revised July

More information

IN THE UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA

IN THE UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA 1 of 5 7/6/2007 11:19 AM IN THE UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA UNITED STATES OF AMERICA, Plaintiff, v. LONG BEACH MORTGAGE COMPANY, Defendant. COMPLAINT FOR COMPENSATORY

More information

Office of Audits and Evaluations Report No. AUD-15-008

Office of Audits and Evaluations Report No. AUD-15-008 Office of Audits and Evaluations Report No. AUD-15-008 The FDIC s Role in Operation Choke Point and Supervisory Approach to Institutions that Conducted Business with Merchants Associated with High-Risk

More information

Joint Guidance on Overdraft Protection Programs. February 18,2005

Joint Guidance on Overdraft Protection Programs. February 18,2005 Attachment Office of the Comptroller of the Currency Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation National Credit Union Administration Joint Guidance on Overdraft

More information