Legal Briefs



FRB
The Federal Reserve Board (FRB) issued the repeal of Regulation Q per the Dodd-Frank Act. Regulation Q prohibited banks from paying interest on demand deposits accounts; banks will now have to decide whether to pay interest on their business accounts. This repeal will go into effect on July 21, 2011.

DCU
The Washington State Division of Credit Unions (DCU) issued DCU Bulletin B-11-05. This Bulletin pertains to CUSOs and due to the Dodd-Frank Act, as of July 21, 2011 the DCU will strictly apply the Washington Consumer Loan Act to state and federally chartered CUSOS.

CFPB
The Consumer Financial Protection Bureau (CFPB) released a report chronicling the work it has completed to build the agency from the ground up.  

The CFPB released a report examining the difference between credit scores sold to consumers and scores used by lenders to make credit decisions. With one of the goals of the CFPB being to bring transparency to consumer financial markets, this report discusses the general lack of information about credit scoring and why the scores would vary.

FinCEN
FinCEN announces electronic filing for MSB registrations and FBAR Forms.  

FinCEN released a final rule that more clearly defines which businesses qualify as Money Services Businesses and are therefore subject to anti-money laundering rules under the Bank Secrecy Act.

FTC
The Federal Trade Commission (FTC) issued a new rule to strengthen consumer protections against deceptive mortgage advertisements. The new rule lists 19 examples of prohibited deceptive claims. While the new rule does not cover federal credit unions, it does cover state chartered credit unions since they fall into the FTC’s jurisdiction. The rule becomes effective on August 19, 2011.

 

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Federal.