VIDEO: Inquiry as a Factor on Adverse Action Notices

VIDEO: Inquiry as a Factor on Adverse Action Notices

Adam Witmer
FCRA, Regulation B

In this Compliance Clip (video), Adam answers a unique question about listing inquiries as a factor in the adverse action notices. Specifically, the question is whether or not creditors are required to include the number of inquiries in the list of factors affecting the credit score if it is the fifth key factor. The answer to this question will come from the FCRA and Regulation B, but specifically from the preamble to the July 15, 2011 Regulation B final rule. A transcript of this video is now available.

D&B Agrees to Settle FTC Charges

Adam Witmer
Regulatory Update

On 1/13/2022, the Federal Trade Commission (FTC) issued a press release that Dun & Bradstreet (D&B) has agreed to an order requiring substantial changes in the firm’s operations that will benefit small- and mid-sized businesses. This is in response to FTC’s charges that D&B engaged in deceptive and unfair practices by deceiving businesses about value of products and failing to correct errors on business credit reports.

CFPB: It’s Illegal to Penalize Borrowers Based on Religion

Adam Witmer
Regulatory Update, Fair Lending

On 1/14/2022, the CFPB issued an article regarding discrimination based on their religious beliefs. The blog post, authored by Lorelei Salas, emphasizes that it is illegal to penalize borrowers for being religious. In the blog post, the CFPB also expressed its concern about how financial institutions might be making use of artificial intelligence and other algorithmic decision tools such as uses third-party data to analyze geolocation data to power their credit decision tools.

CFPB Settles Lawsuit with NACA, et al.

Adam Witmer
Regulatory Update

On 1/14/2022, the CFPB announced that it has settled a lawsuit filed by the National Association of Consumer Advocates, U.S. Public Interest Research Group, and Professor Kathleen Engel. The lawsuit alleged that the Taskforce on Federal Consumer Financial Law, a taskforce chartered by CFPB, did not comply with the Federal Advisory Committee Act (FACA). FACA is a "sunshine" law that seeks to ensure adequate transparency into agency advisory committees.

FDIC and FinCEN Launch Digital Identity Tech Sprint

Adam Witmer
Regulatory Update

On 1/11/2022, the FDIC and FinCEN announced a Tech Sprint to develop solutions for financial institutions and regulators to help measure the effectiveness of digital identity proofing—the process used to collect, validate, and verify information about a person. FDIC's tech lab and FinCEN are collaborating to reduce fraud and other forms of identity-related crime, money laundering, and terrorist financing through the Tech Sprint. They also intend to increase customer confidence in digital banking services.

CFPB Reminds Creditors of the No Surprises Act

Adam Witmer
Regulatory Update, FCRA

On 1/13/22, the CFPB released a bulletin reminding debt collectors and credit bureaus of their legal obligations in light of the No Surprises Act, which protects consumers from certain unexpected medical bills. The bulletin advises credit bureaus that the accuracy and dispute obligations imposed by the FCRA apply with respect to debts stemming from charges that exceed the amount permitted by the No Surprises Act.

VIDEO: Credit Report Fees and Fair Lending

VIDEO: Credit Report Fees and Fair Lending

Adam Witmer
Fair Lending, Regulation B

In this Compliance Clip (video), Adam talks about how credit report fees can relate to fair lending. In particular, Adam describes how differences in credit report charges may lead to a fair lending violation under Regulation B. While this has been a known issue for decades, it seems this topic has resurfaced a bit, so feel free to share this with anyone on your lending team.

CFPB Sues for Illegal Debt Collection Practices

Adam Witmer
Regulatory Update

On 1/10/22, the CFPB sued United Debt Holding (UDH), JTM Capital Management (JTM), United Holding Group (UHG), and their owners, Craig Manseth, Jacob Adamo, and Darren Turco, for illegal debt-collection practices. The Bureau alleges that the defendants placed consumer debt with, or sold consumer debt to, collection companies that used unlawful and deceptive collection tactics. Based on CFPB’s statement, the defendants knew, or should have known, the collection companies made false threats and false statements to consumers.

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