Legal Briefs

Consumer Financial Protection Bureau (CFPB)

The CFPB announced a joint public enforcement action against Discover Bank that will require Discover to refund approximately $200 million to its consumers and pay $14 million in civil money penalties. The action is due to the bureau determining that Discover engaged in deceptive telemarketing tactics to sell the company’s credit card add-on products.

The CFPB released a study that finds credit scores used by consumers and lenders can differ. The study found that 20 percent of scores provided to consumers had a meaningfully different score than what would be provided to a creditor, which could generate harm to the consumer.

The CFPB release the Bureau’s Strategic Plan for 2013 through 2018. The plan covers the four main strategic goals of the bureau, the desired outcomes of the goals, and actions and measures the bureau will take to accomplish the outcomes.


National Credit Union Administration (NCUA)

The NCUA issued a proposed rule that would allow federal credit unions to invest in Treasury Inflation Protected Securities (TIPS). TIPS could provide federal credit unions with an additional investment portfolio risk management tool. Comments are due 60 days after the proposed rule is published in the Federal Register on approximately Nov. 20, 2012.

The NCUA issued a proposed rule that would increase the asset threshold for the definition of a “small credit union” to $30 million, providing additional regulatory relief to more credit unions. Comments are due 30 days after the proposed rule is published in the Federal Register on approximately Oct. 20, 2012.

The NCUA issued a proposed rule that would amend the definition of “rural district.” Under the new definition, a rural district must have “a total population that does not exceed the greater of 200,000 people or 3 percent of the population of the state in which the majority of the district is located.” Comments are due 60 days after the proposed rule is published in the Federal Register on approximately Nov. 20, 2012.

The NCUA issued an Advance Notice of Proposed Rulemaking (ANPR) that would make changes to the federal credit union payday-alternative loans (PAL), sometimes referred to as Short-Term, Small-Dollar Amount (STS) Loans. The ANPR asks questions about possible changes to the program that would encourage more federal credit unions to provide the program to their members. Comments are due 60 days after the ANPR is published in the Federal Register on approximately Nov. 20, 2012.


Office of Foreign Assets Control (OFAC)

The OFAC SDN list was updated again. Last update: Sept. 25, 2012.


Division of Credit Unions (DCU)

The DCU has made the Quarterly Asset Assessment Worksheet for 4th Quarter 2012 available on their website. The ACH debit will be originated on Oct. 31, 2012.


Federal Reserve System’s Outlook Live

The Federal Reserve System’s Outlook Live will be hosting a free webinar on Oct. 17, 2012, from 11 a.m.-12:30 p.m. The webinar will discuss fair-lending issues and other hot topics.

 

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

Posted in Advocacy News, CUNA, Federal, NCUA.