Topic: Credit Practices Rule
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Should we be reporting loan information to credit bureaus regarding loan cosigners? I think we should, but a loan officer disagrees.
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We are not aware of any regulatory requirements or prohibitions related to reporting loan information regarding cosigners to credit reporting agencies, other than the general requirement to report information that is accurate and complete. We think it is helpful to define “cosigner” — a term that can apply to different types of loan obligations as…
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Our FDIC examiners looked at our fee schedule, which includes a charge for overdrafts that are not resolved (“continuous overdrafts”). The examiners told us to add a disclosure to the fee schedule stating that we may assess a fee for a “continuous overdraft” caused by a bank fee. We were thinking about adding a line stating that continuous overdrafts would “include OD as a result from bank charges.” Does the FDIC have any guidance on how to phrase this disclosure?
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We are not aware of any rule or guidance that specifies how to disclose the fact that bank fees may cause continuous overdrafts which will incur separate overdraft fees. If your disclosure is clear and not misleading, we believe it should be sufficient as it relates to the wording of the disclosure. In our view,…
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For auditing purposes, should we apply Reg AA, UDAP, the CFPB’s UDAAP, or the FTC Credit Practices Rule?
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We believe your audits should cover all of the above: UDAP, UDAAP, and the FTC’s Credit Practices Rule (which was adopted by the banking regulators as Regulation AA). UDAAP The newest standard is the UDAAP standard (with an extra “A” for “abusive,” which was added by the Dodd-Frank Act in 2010). The UDAAP standard is…