All in FCRA

TD Bank Fined for Overdraft and FCRA Violations

Adam Witmer
FCRA, Regulatory Update, UDAAP

On 8/20/2020, the CFPB announced a settlement with TD Bank regarding its marketing and sale of its optional overdraft service, referred to by the as Debit Card Advance (DCA). In addition to the issues with their overdraft practices, the CFPB also found that “TD Bank violated FCRA and Regulation V by failing to establish and implement reasonable written policies and procedures concerning the accuracy and integrity of consumer-account information it furnished to two nationwide specialty consumer reporting agencies.” The consent order requires TD Bank to provide an estimated $97 million in restitution to about 1.42 million consumers and to pay a civil money penalty of $25 million.

CFPB Issues FAQs on Credit Reporting

Adam Witmer
Regulatory Update, FCRA

On 6/16/2020, the CFPB issued a new compliance aid to provide financial institutions with additional information relating to the CARES Act and this COVID-19 pandemic. This new guide (Version 1) reiterates the Bureau’s April 1, 2020 “Statement on Supervisory and Enforcement Priorities Regarding the Fair Credit Reporting Act and Regulation V in Light of the CARES Act” and provides ten questions and answers to assist financial institutions in understanding Bureau expectations.

CFPB Guidance on Credit Reporting during COVID-19 Pandemic

Adam Witmer
FCRA, Regulatory Update

On April 1, 2020, the CFPB released a policy statement outlining the responsibility of credit reporting companies and furnishers during the COVID-19 pandemic. In response to the pandemic, many lenders are being flexible when it comes to consumers’ making payments. As many lenders are now working to offer struggling borrowers payment accommodations, Congress last week passed the CARES Act which requires lenders to report to credit bureaus that consumers are current on their loans if consumers have sought relief from their lenders due to the pandemic. The Bureau’s statement informs lenders they must comply with the CARES Act and also encourages lenders to continue to voluntarily provide payment relief to consumers and to report accurate information to credit bureaus relating to this relief.

Negative Information Notice

Negative Information Notice

Adam Witmer
FCRA

In this Compliance Clip (video), Adam explains the regulatory requirements for the negative information notice. While the Fair Credit Reporting Act is one of the most dreadful and boring regulations found in the entire complianceverse, Adam does his best in this video to provide a bit of excitement to an otherwise soul sucking topic.

Using a Credit Score Disclosure in Lieu of the Adverse Action Notice

Using a Credit Score Disclosure in Lieu of the Adverse Action Notice

Adam Witmer
Adverse Action, FCRA, Regulation B

This Compliance Clip (video) answers the question of whether the FCRA pieces of the AA Notice must be completed every time, or if creditors can combine certain FCRA disclosures with the AA Notice. Adam attempts a new approach to adding a bit of humor to a mundane compliance topic and fails terribly. He makes a promise to never attempt this approach again (unless he is asked).

No Risk-Based Pricing No Credit Score Disclosure

Adam Witmer
FCRA

Over the years, I have seen quite a bit of confusion relating to requirements under the Fair Credit Reporting Act (FCRA) when it comes to risk-based pricing.  One misunderstanding I have seen several times is that some believe a “credit score disclosure” is required for non-real estate applications, even if a financial institution does not set rates based on the risk (credit score) of the customer.  As I will explain below, this is not a correct understanding.

Credit Score Exception Notice for Denied Applications

Adam Witmer
FCRA

In discussing the Fair Credit Reporting Act, one question I often receive is whether or not the credit score exception notice must be provided when an application is denied and the applicant is receiving an adverse action notice.  The thought is that the credit score information is included on the adverse action notice, so why would the credit score exception notice - that basically provides the exact same information - still be required? Believe it or not, this question is actually quit complex, so I will do my best to explain this for you.  

The Difference Between the Credit Score Disclosure & Risk Based Pricing Notice

Adam Witmer
FCRA

The requirements for risk-based pricing notices and credit score disclosures can be extremely confusing at times.  Trust me, I know.  As was the case for me in the past, most bankers don’t have to worry about understanding the different disclosure options available as a bank will only use one form or another and will never have a need for the other disclosure options.  That said, however, understanding which disclosures are required is important to...

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