Banker Compliance News

Banking compliance professionals require hot-topic news on consumer and regulatory compliance updates, decisions, amendments, changes and launches from across a wide spectrum of news agencies and federal websites. Not only do we update our News pages with individual news items and their links, but these are sent to members in a Daily Bank Compliance email that can be signed up for once new members log-in. Compliance Alliance monitors these agencies for bank compliance news updates throughout the day—posting relevant information to our News page. This is a valuable resource for Bank Managers and their employees.

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FTC Sends More Than $5 Million in Refunds to Consumers Harmed by Bogus Credit Repair Scheme

January 21, 2025 / Source: FTC

The Federal Trade Commission is sending more than $5 million in refunds to consumers harmed by a deceptive credit card debt relief scheme known as ACRO Services. The FTC filed a lawsuit in November 2022 against ACRO Services, which operated under multiple names such as American Consumer Rights Organization, Consumer Protection Resources, Reliance Solutions, Thacker & Associates, and…

Statement from Acting Chairman Travis Hill

January 21, 2025 / Source: FDIC

WASHINGTON – On January 20, 2025, Travis Hill became Acting Chairman of the Federal Deposit Insurance Corporation (FDIC).  Acting Chairman Hill issued the following statement: “It is my honor and privilege to serve as Acting Chairman of the FDIC. While the FDIC faces a broad range of issues, and as always will fulfill our mandate to…

FDIC Withdraws from the Network of Central Banks and Supervisors for Greening the Financial System

January 21, 2025 / Source: FDIC

WASHINGTON – Effective today, the Federal Deposit Insurance Corporation (FDIC) has withdrawn from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS). The work of NGFS is not within the FDIC’s authorities and mandate, and thus the FDIC has withdrawn.

CFPB Orders Equifax to Pay $15 Million for Improper Investigations of Credit Reporting Errors

January 20, 2025 / Source: CFPB

WASHINGTON, D.C. â€“ Today, the Consumer Financial Protection Bureau (CFPB) took action against Equifax, the nationwide consumer reporting agency, for its failure to conduct proper investigations of consumer disputes. The CFPB found Equifax ignored consumer documents and evidence submitted with disputes, allowed previously deleted inaccuracies to be reinserted into credit reports, provided confusing and conflicting letters…

Strengthening Appraisal Oversight: Progress at the Appraisal Subcommittee

January 20, 2025 / Source: CFPB

I am very pleased to provide this informal report on the progress made by the Appraisal Subcommittee (ASC) since I became Chair. Before detailing our successes, I would like to acknowledge and thank Jim Park, whose tenure as ASC Executive Director just ended on January 1, 2025. I want to express my gratitude for his…

Financial Crimes Enforcement Network; Inflation Adjustment of Civil Monetary Penalties

January 20, 2025 / Source: FinCEN

Release Date January 17, 2025 Financial Crimes Enforcement Network; Inflation Adjustment of Civil Monetary Pe… Action Type Final Rule

American Express Agrees to Pay $108.7M to Settle Allegations of Deceptive Marketing and “Dummy” Account Information

January 16, 2025 / Source: OIG

The American Express Company (American Express), based in New York, New York, has agreed to pay a $108.7 million civil penalty to resolve allegations that it violated the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) by deceptively marketing credit card and wire transfer products and by entering “dummy” Employer Identification Numbers in…

HUD Updates Options to Help Homeowners Keep Their Homes

January 16, 2025 / Source: HUD

WASHINGTON – Today, the U.S. Department of Housing and Urban Development (HUD), through its Federal Housing Administration (FHA), announced an updated set of permanent options for mortgage servicers to help borrowers with FHA-insured single-family mortgages keep their homes or otherwise avoid foreclosure when they fall behind on their mortgage payments. The options, commonly referred to as FHA’s loss…

FTC and DOJ Jointly Issue Antitrust Guidelines on Business Practices that Impact Workers

January 16, 2025 / Source: FTC

Today, the Federal Trade Commission and the Department of Justice Antitrust Division (DOJ) jointly issued antitrust guidelines for business activities affecting workers. The guidelines explain how both the FTC and DOJ assess whether business practices affecting workers violate the antitrust laws. These guidelines replace the 2016 Antitrust Guidance for Human Resource Professionals. Competition among employers helps workers through…

OCC Announces Enforcement Actions for January 2025 and Updates to Enforcement Action Search Tool

January 16, 2025 / Source: OCC

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today released enforcement actions taken against national banks and federal savings associations (banks), and individuals currently and formerly affiliated with banks the OCC supervises. The OCC also announced updates to its enforcement action search tool. The OCC uses enforcement actions against banks to require the board…

Holding Credit Reporting Companies Accountable for Junk Data

January 16, 2025 / Source: CFPB

Credit reports serve as economic gatekeepers for millions of Americans seeking to buy a home, start a business, or get a car loan. When these reports contain inaccuracies or mistakes, consumers can face serious financial consequences – from loan denials to higher interest rates. The Fair Credit Reporting Act establishes clear legal requirements for credit…

CFPB Orders Operator of Cash App to Pay $175 Million and Fix Its Failures on Fraud

January 16, 2025 / Source: CFPB

WASHINGTON, D.C. â€“ Today, the Consumer Financial Protection Bureau (CFPB) ordered Block, the operator of the peer-to-peer payments app Cash App, to refund and pay other redress to consumers up to $120 million and pay a penalty of $55 million into the CFPB’s victims relief fund. Block employed weak security protocols for Cash App and put…

FTC Seeks Public Comment on Single-Family Rental Home Mega Investors Study

January 15, 2025 / Source: FTC

The Federal Trade Commission issued a request for public comment on potential FTC orders that seek to understand how large-scale single-family rental owner operators, known as mega investors, have affected home prices and rents across the single-family rental market. The Commission voted to authorize staff to publish a Federal Register Notice seeking public comment on potential 6(b)…

OCC Imposes Civil Money Penalties Against Three Former Executives of Wells Fargo

January 15, 2025 / Source: OCC

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today announced enforcement actions against three former senior executives of Wells Fargo Bank, N.A., Sioux Falls, South Dakota (bank). These actions were taken in response to the former executives’ unsafe or unsound banking practices related to the bank’s systemic and widespread sales practices misconduct. The enforcement…

Consumer advisory: Beware of costly, risky, and complex home equity “investment” contracts

January 15, 2025 / Source: CFPB

With rising interest rates in recent years, homeowners are looking for ways to reduce the costs of getting a home equity loan. Some companies offer what sounds like a great deal: the company will pay you money now, as an “investment” in your home, and you pay them back later with a share of how…

What We’re Watching: Language Access in Consumer Finance

January 15, 2025 / Source: CFPB

Approximately 26 million people in the U.S. speak English less than “very well” and are considered to have limited English proficiency.1 To better understand how financial institutions are serving consumers in languages other than English, the CFPB recently engaged with industry associations, financial services providers, and other stakeholders. Through this engagement, we observed increasing recognition that…

FHFA Announces Final Rule Expanding Access to Liquidity for the Federal Home Loan Bank System

January 14, 2025 / Source: FHFA

Washington, D.C. â€“ The Federal Housing Finance Agency (FHFA) published a final rule today designed to improve access to liquidity for the Federal Home Loan Bank (FHLBank) System by adjusting the treatment of certain short-term FHLBank investments. The rule modifies FHLBank limits on the extension of certain forms of unsecured credit. Previously, an FHLBank’s deposits held…

Federal and state financial regulatory agencies issue interagency statement on supervisory practices regarding financial institutions affected by the California wildfires and straight-line winds

January 14, 2025 / Source: FRB

The California Department of Financial Protection and Innovation, the Federal Deposit Insurance Corporation, the Federal Reserve Board, the National Credit Union Administration, and the Office of the Comptroller of the Currency, collectively the agencies, recognize the serious impact of the California wildfires and straight-line winds on the customers and operations of many financial institutions and…

CFPB Sues Capital One for Cheating Consumers Out of More Than $2 Billion in Interest Payments on Savings Accounts

January 14, 2025 / Source: CFPB

WASHINGTON, D.C. â€“ Today, the Consumer Financial Protection Bureau (CFPB) sued Capital One, N.A., and its parent holding company, Capital One Financial Corp., for cheating millions of consumers out of more than $2 billion in interest. The CFPB alleges that Capital One promised consumers that its flagship “360 Savings” account provided one of the nation’s “best”…

Strengthening State-Level Consumer Protections

January 14, 2025 / Source: CFPB

Consumer protection law has long been a core part of keeping markets fair and competitive. And the consumer protection framework has always been a partnership between the federal government and the states. As our markets change, our federal and state laws must keep pace to deal with predatory practices, new actors, and other risks. Today,…

Biden-Harris Administration Awards $100 Million for Communities to Boost Housing Supply and Lower Housing Costs

January 14, 2025 / Source: HUD

WASHINGTON – Today, the U.S. Department of Housing and Urban Development (HUD) awards $100 million in grants to 18 winners benefitting communities across the 15 States to cut red tape, build more homes, and lower the costs of renting and buying a home. These competitive funds – delivered in record time – are provided through HUD’s Pathways…

CFPB Finds Hundreds of Thousands of Mortgages in Southeast and Central Southwest US Likely Underinsured Against Flood Risk

January 13, 2025 / Source: CFPB

Washington, D.C. â€“ Today, the Consumer Financial Protection Bureau (CFPB) issued a new report that found significant differences in the likelihood that homeowners with a mortgage are adequately insured against flooding based both on location and on income and assets. According to findings, homeowners in coastal areas were most likely to have flood insurance and generally…

CFPB Research Reveals Heavy Buy Now, Pay Later Use Among Borrowers with High Credit Balances and Multiple Pay-in-Four Loans

January 13, 2025 / Source: CFPB

WASHINGTON, D.C. â€“ Today, the Consumer Financial Protection Bureau (CFPB) released a study of Buy Now, Pay Later (BNPL) borrowers, finding that more than one-fifth of consumers with a credit record used BNPL loans in 2022, with most of those consumers having subprime or deep subprime credit scores. The CFPB research also revealed that more than…

CFPB Proposes Rule to Ban Contract Clauses that Strip Away Fundamental Freedoms

January 13, 2025 / Source: CFPB

Washington, D.C. â€“ Today, the Consumer Financial Protection Bureau (CFPB) proposed a rule that would stop financial companies from forcing Americans to choose between participating in the financial system or giving up their rights, including those guaranteed by the Constitution. The proposed rule seeks to stop companies from using a variety of contract clauses that limit…

Federal Housing Administration Supports Homeownership Affordability and Provides Greater Program Transparency for Mortgage Servicers

January 13, 2025 / Source: HUD

WASHINGTON – Today, the U.S. Department of Housing and Urban Development (HUD), and the Federal Housing Administration (FHA), announced two actions that increase homeownership affordability and enhance clarity and transparency for mortgage servicers in its Single Family program. First, FHA is providing greater underwriting flexibility for borrowers who rent space inside their homes to qualify for affordable FHA-insured…