Oct 15

Oct 15 VIDEO: Reg E Affirmative Consent

In this 8+ minute Compliance Clip (video), Adam discusses a Regulation E pitfall identified in a recent enforcement action. Specifically, Adam shows how a financial institutions could think they are complying with the affirmative consent provisions for overdraft protection programs under Regulation E, but miss the mark due to logistics of the account opening process. This topic comes right out of our Fall 2020 Quarterly Compliance Update, which can be found in our store at https://www.compliancecohort.com/fall-2020-quarterly-compliance-update.

Jun 18
Jun 18 CFPB Updates Remittance Transfer Guide

Adam Witmer

Regulation E, Regulatory Update

The CFPB has recently updated its Small Entity Compliance Guide on Remittance Transfers to correspond with the May 11, 2020 changes to the rule. The main changes to this guide include the following:

May 12
May 12 CFPB Releases Final Rule on Remittance Transfers

Adam Witmer

Regulation E, Regulatory Update

On May 11, 2020, the CFPB issued a final rule covering remittances transfers, which imposes requirements on entities that send international money transfers (i.e. remittance transfers) on behalf of consumers. Among its requirements, the Remittance Rule mandates that remittance transfer providers generally must disclose the exact exchange rate, the amount of certain fees, and the amount expected to be delivered to the recipient. The existing Remittance Rule also allows for depository institutions to estimate certain fees and exchange rate information under certain circumstances, but by statute, this provision expires in July 2020.

The new final rule allows certain banks and credit unions to continue to provide estimates of the exchange rate and certain fees under certain conditions. This could preserve consumers’ ability to send remittances from their bank accounts to certain countries or recipient institutions. In addition, the new final rule also increases the threshold that determines whether an entity makes remittance transfers in the normal course of its business and is subject to the Rule. Specifically, entities making 500 or fewer transfers annually in the current and prior calendar years would not be subject to the Rule. In their issuance, the CFPB states that this will reduce the burden on over 400 banks and almost 250 credit unions that send a relatively small number of remittances.

Jan 10

Jan 10 Reg E Disputes on Older Transactions

Adam Witmer

Regulation E

In this Compliance Clip (video), Adam discusses how Reg E liability and the dispute process works for older transactions. You know, when a customer comes to you two years after-the-fact and says they now want to dispute a purchase they don’t remember doing. This video explains the responsibilities under Regulation E as far as what needs done for this type of dispute.

Oct 3

Oct 3 Requiring Reg E Disputes to be Submitted Only Online

Adam Witmer

Regulation E

In this Compliance Clip (video), Adam answers a question related to streamlining the EFT dispute process by requiring customers to submit all disputes online so that they can easily flow into a help-desk type software for tracking purposes. Adam provides two examples where other financial institutions have had similar requirements and how this process worked out for them.

Jun 13

Jun 13 Promptly Investigating Under Regulation E

Adam Witmer

Regulation E

In this Compliance Clip (video), Adam breaks down the requirement to investigate “errors” promptly under Regulation E. This video gives an overview of the rule and provides a great case study of “what not to do” regarding delaying investigations - and how doing so can have major consequences, such as UDAAP violations. If you are delaying investigations of Reg E claims for any reason, Adam will show you how this might be a major problem for you.

Feb 4
Feb 4 Reg E Start Times for Pending Transactions

Adam Witmer

Regulation E

Over the years, we have seen a number of questions relating to how Regulation E error resolution rules relate to pending transactions that have not yet settled to a customer’s account. The challenge that many bankers face is a customer will call in to dispute a transactions they see on their account as a “memo post,” but since the transaction is pending, it may never actually post to the account or will be finalized in an amount different than the original “memo post” amount. For bankers, this is challenging because…

Jan 8
Jan 8 Lessons Learned from USAA - Reg E & UDAAP

Adam Witmer

Regulation E, Regulatory Update, UDAAP

On 1/2/19, new CFPB director Kathleen Kraninger signed a consent order with USAA Federal Savings Bank. While the consent order outlines millions of dollars in restitutions and penalties, the order provides financial institutions with fairly detailed insights on a number of Regulation E violations identified by the Bureau. As Regulation E applies to all financial institutions regardless of their regulator, this consent order can be used as a learning tool for appropriately complying with the Regulation.

Specifically, the USAA consent order outlined six main deficiencies that resulted in either a violation of Regulation or a UDAAP violation, or both, including…

Jun 22

Jun 22 Deposit Statement Delivery Requirements

Adam Witmer

Regulation E

Adam uses this video to explain the delivery requirements for deposit statements including the difference between regular and interim statements, which rule actually requires the delivery of statements, and which deposit accounts must receive statements.