Compliance Watch

Question: How does EFT protection work for business accounts? Do we have to grant them the same protections as Regulation E? Answer: No. Regulation E is a consumer regulation, with a consumer defined as “a natural person” under 12 CFR 1005.2(e).

New RISK Alerts are now available from CUNA Mutual Group and are found on the Resources area (Credentials required for access).

The CFPB has released Spanish translations for certain model and sample forms included in the Prepaid Rule in Regulation E and for certain adverse action model and sample notices included in Regulation B.

The Federal Trade Commission recently announced a proposal to extend protections against telemarketing tricks and traps to small businesses and strengthen safeguards against other pernicious telemarketing tactics plaguing consumers.

OFAC has announced it has amended and reissued the Ukraine-Related Sanctions Regulations and renamed them “Ukraine-/Russia-Related Sanctions Regulations.”

The Financial Stability Board recently announced its publication of an interim report, “Supervisory and Regulatory Approaches to Climate-related Risks,” that aims to assist supervisory and regulatory authorities in developing their approaches to monitor, manage, and mitigate cross-sectoral and systemwide risks arising from climate change and to promote consistent approaches across sectors and jurisdictions.

The Federal Housing Finance Agency has announced that Fannie Mae and Freddie Mac (the Enterprises) will require lenders to use the Supplemental Consumer Information Form (SCIF) as part of the application process for loans that will be sold to the Enterprises.

Question: We are looking to open accounts online and wonder if we are required to provide account opening disclosures immediately or if we can send them after the account opens for review later. What is the correct timing? Answer: To cite 12 CFR 707.4:

Your members look to you to protect their assets in case an unforeseen disaster occurs, so it’s critical for credit unions to have a blueprint for emergency preparedness.

The CFPB recently issued a report that examines the financial consequences of medical billing and collections endured by individuals and families across the country.