Labor Law Updates
September 26, 2017
A federal district court in Texas overturned the U.S. Department of Labor’s (DOL) final rule regarding overtime. The rule would have increased the salary threshold for white-collar employees for the Fair Labor Standards Act from $455 per week ($23,660 annually) to $913 per week ($47,476 annually).
The Office of Management and Budget (OMB) issued a stay on the Equal Employment Opportunity Commission’s (EEOC) rule that would have required larger employers to provide pay data on the annual EEO-1 report. The OMB relied on its authority under the Paperwork Reduction Act to issue the stay and expressed concerns that the revised data collection “lack practical utility, are unnecessary burdensome, and do not adequately address privacy and confidentiality issues.”
Question of the Week
Under the MLA, if we end up charging a bona fide fee that is considered unreasonable on a credit card, what happens?
If, during a statement cycle, you charge an unreasonable bona fide fee, then the unreasonable bona fide fee AND any reasonable bona fide fees, along with the finance charge and any other fees must be used in the MAPR calculation. The final rule provides examples of how this would apply:
(iii) Examples. (A) In a credit card account under an open-end (not home-secured) consumer credit plan during a given billing cycle, Creditor A imposes on a covered borrower a fee for a debt cancellation product (as described in paragraph (c)(1)(i) of this section), a finance charge (as described in paragraph (c)(1)(iii)(A)), and a bona fide foreign transaction fee that qualifies for the exclusion under this paragraph (d). Only the fee for the debt cancellation product and the finance charge must be included when calculating the MAPR.
(B) In a credit card account under an open-end (not home-secured) consumer credit plan during a given billing cycle, Creditor B imposes on a covered borrower a fee for a debt cancellation product (as described in paragraph (c)(1)(i) of this section), a finance charge (as described in paragraph (c)(1)(iii)(A)), a bona fide foreign transaction fee that qualifies for the exclusion under this paragraph (d), and a bona fide, but unreasonable cash advance fee. All of the fees—including the foreign transaction fee that otherwise would qualify for the exclusion under this paragraph (d)—and the finance charge must be included when calculating the MAPR.
National Credit Union Administration (NCUA)
The NCUA issued Letter to Credit Unions 17-CU-05, which addresses frequently asked questions on the new Accounting Standard on Financial Instruments—Credit Losses.
The NCUA announced that 56 federally insured credit unions will receive CDFI awards totalling $39.5 million.
The NCUA rescheduled its closed meeting originally slated for Thursday, October 28, 2017. The meeting will now be held on Wednesday, September 27, 2017 at 4 p.m. EST.
Consumer Financial Protection Bureau (CFPB)
The CFPB announced that it made modifications to the Equal Credit Opportunity Act (ECOA) to allow great flexibility to mortgage lenders when collecting data.
The CFPB posted a blog article compiling all of the resources available for those impacted by the Equifax data breach.
The CFPB announced that it will work with Credit Karma in its new Project Catalyst research pilot to encourage consumer-friendly financial products and services.
Federal Reserve Board (FRB)
The FRB released the September issue of its FedFlash publication, which includes information on holiday currency ordering and revisions to Operating Circular 4.
The FRB released the minutes from its September Federal Advisory Council meeting.
Office of Foreign Assets Control (OFAC)
OFAC has updated the SDN list as of September 19, 2017. The last update prior to this was September 14, 2017.
Questions? Contact the Compliance Hotline: 1.800.546.4465, firstname.lastname@example.org.