Jul 25
Jul 25 OCC Fines American Express for Failures on Third-Party Affiliate Governance and Oversight

On July 25, 2023, the OCC announced a $15 million civil money penalty against American Express National Bank (American Express) for failing to govern and oversee a third-party affiliate and for violations of regulations relating to certain efforts to retain small business customers. The OCC penalty has been paid to the U.S. Department of the Treasury.

Jul 24
Jul 24 CFPB Sues Snap Finance for Deceiving Consumers and Making False Threats

Adam Witmer

Regulatory Update, FCRA, Regulation E, Regulation Z

On July 19, 2023, the CFPB sued lease-to-own finance company Snap Finance for deceiving consumers, obscuring the terms of its financing agreements, and making false threats. According to the CFPB, Snap Finance’s practices violate the Consumer Financial Protection Act, the Truth in Lending Act, the Electronic Fund Transfer Act, and the Fair Credit Reporting Act. The CFPB is seeking monetary relief for consumers, an end to Snap Finance’s illegal practices, and a civil money penalty.

Jul 20
Jul 20 FRB Issues Consent Order Against Deutsche Bank AG

Adam Witmer

Regulatory Update, BSA

On July 19, 2023, the Federal Reserve Board issued a consent order against Deutsche Bank AG, its New York branch, and other U.S. affiliates. The consent order requires Deutsche bank to pay a $186 million fine based on unsafe and unsound practices and violations of the Board's 2015 and 2017 consent orders with Deutsche Bank relating to sanctions compliance and anti-money laundering controls.

Jul 17
Jul 17 CFPB Sues Prehired For Illegal Student Lending Practice

Adam Witmer

Regulatory Update

On July 13, 2023, the CFPB joined with several state attorneys general and a state regulator to take action against Prehired for deceptive marketing and debt collection practices. The attorneys general from Washington, Oregon, Delaware, Minnesota, Illinois, Wisconsin, Massachusetts, North Carolina, South Carolina, and Virginia joined the action, along with California’s Department of Financial Protection and Innovation.

Jul 17
Jul 17 New Director of FinCEN Announced

Adam Witmer

Regulatory Update

On July 13, 2023, Secretary of the Treasury Janet L. Yellen announced the appointment of Andrea Gacki as the Director of the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). Acting FinCEN Director Himamauli “Him” Das will continue in his role during the transition period and assist Gacki in her onboarding process.

Jul 13
Jul 13 CFPB Issues Amicus Brief Concerning TILA

Adam Witmer

Regulatory Update, Regulation Z

On July 12, 2023, the CFPB joined the State of Maine to help ensure that consumers receive critical consumer protections when taking out loans by filing an amicus brief in the Maine Supreme Judicial Court in a case involving a married couple’s loan. Maine law incorporates the federal Truth in Lending Act that provides crucial consumer protections, including requiring lenders to provide precise information about the amount of a loan, its interest rate and other costs, and when it must be repaid.

Jul 12
Jul 12 SEC Takes Action Against Merrill Lynch and BACNAH for Failing to File SARs

Adam Witmer

Regulatory Update, BSA

On July 11, 2023, the SEC announced charges against Merrill Lynch, Pierce, Fenner & Smith Incorporated and its parent company BAC North America Holding Co. (BACNAH) for failing to file hundreds of Suspicious Activity Reports (SARs) from 2009 to late 2019. To settle the SEC charges, Merrill Lynch agreed to pay a $6 million penalty. Merrill Lynch also agreed to pay a $6 million fine to settle charges brought by the Financial Industry Regulatory Authority (FINRA).

Jul 11
Jul 11 CFPB Fines Bank of America for Multiple Violations

Adam Witmer

Regulatory Update, UDAAP, Regulation Z

On July 11, 2023, the CFPB ordered Bank of America to pay more than $100 million to customers for systematically double-dipping on fees imposed on customers with insufficient funds in their account, withholding reward bonuses explicitly promised to credit card customers, and misappropriating sensitive personal information to open accounts without customer knowledge or authorization. Bank of America will pay a total of $90 million in penalties to the CFPB and $60 million in penalties to the OCC, which also found that the bank’s double-dipping on fees was illegal.

Jul 4
Jul 4 FTC Issues Final Guidance on the Use of Endorsements and Testimonials in Advertising

Adam Witmer

Regulatory Update

On June 29, 2023, the FTC issued an updated version of its Endorsement Guides, which provide agency guidance to businesses and others to ensure that advertising using reviews or endorsements is truthful. The revised Guides include additional changes not incorporated in the proposed revisions published for public comment on July 26, 2022.

Jul 3
Jul 3 CFPB Releases 2022 Fair Lending Annual Report to Congress

Adam Witmer

Regulatory Update, Fair Lending

On June 29, 2023, the CFPB released its Fair Lending Annual Report to Congress, describing its fair lending activities in enforcement and supervision; guidance and rulemaking; interagency coordination; and outreach and education for calendar year 2022. The Fair Lending Annual Report to Congress fulfills the Bureau’s statutory responsibility to report annually to Congress on public enforcement actions taken under the ECOA as well as the utility of the HMDA’s mortgage loan data collection requirements.