CFPB Fines U.S. Bank $37.5 Million for Illegal Data Exploitation

Adam Witmer
FCRA, Regulatory Update

On July 28, 2022, the CFPB took action against U.S. Bank for illegally accessing its customers’ credit reports and opening checking and savings accounts, credit cards, and lines of credit without customers’ permission. According to the CFPB, U.S. Bank pressured and incentivized its employees to sell multiple products and services to its customers leading to employees unlawfully accessing customers’ credit reports and sensitive personal data to apply for and open unauthorized accounts.

VIDEO: Redisclosing the Closing Disclosure

VIDEO: Redisclosing the Closing Disclosure

Adam Witmer
Regulation Z

In this Compliance Clip (video), Adam answers the question on whether or not you are required to provide the consumer with a corrected Closing Disclosure within three business days if there is a change to the initial Closing Disclosure. The answer to this question comes from Regulation Z. A transcript of this vide is now available.

CFPB and DOJ Files Complaint Against Trident for Discrimination Against Minority Families

Adam Witmer
Regulatory Update, Fair Lending

On July 27, 2022, the CFPB and DOJ took action to end Trident Mortgage Company’s intentional discrimination against families living in majority-minority neighborhoods in the greater Philadelphia area. The CFPB and DOJ allege Trident redlined majority-minority neighborhoods through its marketing, sales, and hiring actions. If entered by the court, the settlement would require Trident to pay a $4 million civil penalty to the CFPB for victims’ relief fund.

FATF Updates Guidance for the Real Estate Sector

Adam Witmer
Regulatory Update

On July 26, 2022, the FATF updated its Risk-Based Approach Guidance for the Real Estate Sector which outlines the principles and benefits of adopting a risk-based approach to tackling money laundering and terrorist financing in the real estate sector. The revised guidance highlights the importance for the sector to increase its understanding of the money laundering and terrorist financing risks it faces.

Proposed Rule on Advertising Endorsements and Testimonials

Adam Witmer
Regulatory Update

On July 26, 2022, the FTC published a proposed rule and is seeking public comment on the proposed revisions to its Guides Concerning the Use of Endorsements and Testimonials in Advertising. The Guides are designed to assist businesses and others in conforming their endorsement and testimonial advertising practices to the requirements of section 5 of the FTC Act, also known as “Unfair or Deceptive Acts or Practices”.

NCUA’s Proposed Rule on Cyber Incident Reporting

Adam Witmer
Regulatory Update

On July 21, 2022, the NCUA announced during its seventh open meeting of 2022 that it is issuing a notice of proposed rulemaking on cyber incident notification requirements. The proposed rule would require a federally insured credit union (FICU) to notify the NCUA as soon as possible but no later than 72 hours after they reasonably believe that a reportable cyber incident has occurred.

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