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FULL-SCALE COMPLIANCE REVIEW We read the fine print so you don’t have to. The federal laws and regulations that affect credit unions seem to change daily. And, in today’s financial environment, sometimes it seems as if they change even faster than 1.85% 1.85% that. More than ever, your credit union needs to feel confident that it is in compliance and will stay in compliance. FULL-SCALE COMPLIANCE REVIEW to ensure all the changes were properly implemented. WHY POLICYWORKS? Fortunately our process enables your credit union to take + OUR ONLY BUSINESS IS CREDIT UNION a look back once things have been finalized and confirm REGULATIONS whether you have done things correctly. + OUR TRAINED PROFESSIONALS HAVE YEARS OF EXPERIENCE WITH CREDIT The full-scale review reviews compliance with all applicable federal UNION REGULATIONS laws and regulations, including, but not limited to: + Appraisals + WE SAVE CREDIT UNIONS TIME AND MONEY + Bank Secrecy Act + Children’s Online Privacy Protection Act + WE ARE A TRUSTED PARTNER + Credit Card Act of 2009 TO CREDIT UNIONS + Electronic Funds Transfer Act + Electronic Signature Act The Challenge + Equal Credit Opportunity Act + Expedited Funds Availability Act Credit unions can find themselves out of compliance + Fair Credit Reporting Act with federal laws and regulations — even when they have a full-time compliance officer. The consequences can + Fair Housing Act include monetary, legal and public relations penalties. + Home Mortgage Disclosure Act In addition to the laws already on the books, you can + NCUA Rules and Regulations expect new regulations to go into effect this year. + OFAC + Privacy Act The challenge is to comply with credit union regulations + Real Estate Settlement Procedures Act and still serve members. + Reserve Requirements + SAFE Act The Solution + Servicemembers Civil Relief Act PolicyWorks advocates a preventative approach with our Full-Scale + Truth in Lending Compliance Review. At PolicyWorks, we are solely focused on the + Truth in Savings federal laws and regulations that affect credit unions, which is why when we conduct a Full-Scale Compliance Review, you’ll be able to feel The regulations aren’t standing still, and you shouldn’t either. secure that your credit union is in compliance. Because we know the Contact Ryan Charlton today at 866.518.0209 or visit us at www. regulations so well — down to the footnotes and fine print — we find policyworksllc.com to get started. the things that you may have missed. At the completion of the review, our professional staff provides you with a customized, written report PolicyWorks does not provide legal opinions or legal advice. As such, the detailing any compliance problems and our suggested resolutions. services provided by PolicyWorks should not be construed as legal services, legal advice or in any way establishing an attorney-client relationship. In today’s regulatory environment, change sometimes happens so drastically and radically that it is very difficult ® Compliance is our policy. 1500 NW 118th Street | Des Moines, IA 50325 | P. 866.518.0209 | www.policyworksllc.com | www.theworksblog.com.

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CEO 312, Credit CARD Act: Interest Rate Increases and Rules on Unfair
Office of Thrift Supervision Montrice Godard Yakimov RESCINDEDDepartment of the Treasury Managing Director, Compliance and Consumer Protection 1700 G Street, N.W., Washington, DC 20552 • (202) 906-6173 July 13, 2009 MEMORANDUM FOR: CHIEF EXECUTIVE OFFICERS FROM: Montrice Godard Yakimov, Managing Director Compliance and Consumer Protection SUBJECT: Credit CARD Act: Interest Rate Increases and Rules on Unfair Practices On May 22, 2009, President Obama signed into law the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act). In addition to providing a number of other important protections for consumers, the Credit CARD Act will address interest rate reductions on open end consumer credit plans. It will require institutions to: (1) Maintain reasonable methodologies for assessing the credit risk of the obligor, market conditions, or other factors upon which an annual percentage rate (APR) increase is based; (2) Not less frequently than once every six months, review accounts for which an APR has been increased since January 1, 2009 to assess whether such factors have changed, including whether any risk has declined (“Look Back” provision); (3) Reduce an APR previously increased when a reduction is indicated by the review; and (4) Provide written notice of the reasons when an increase is indicated by the review. These provisions do not become effective until August 2010. However, OTS strongly encourages institutions under its supervision to consider them now as preparations are made to comply with the Credit CARD Act, particularly with respect to the requirements of the Look Back provision. The Credit CARD Act also expands the prohibition against five practices that the OTS, the Federal Reserve Board (FRB), and the National Credit Union Administration recently found to be unfair under Section 5 of the Federal Trade Commission Act, which prohibits unfair or deceptive acts and practices.
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The Credit CARD Act of 2009: What Did Banks Do?
No. 13-7 The Credit CARD Act of 2009: What Did Banks Do? Vikram Jambulapati and Joanna Stavins Abstract The Credit CARD Act of 2009 was intended to prevent practices in the credit card industry that lawmakers viewed as deceptive and abusive. Among other changes, the Act restricted issuers’ account closure policies, eliminated certain fees, and made it more difficult for issuers to change terms on credit card plans. Critics of the Act argued that because of the long lag between approval and implementation of the law, issuing banks would be able to take preemptive actions that might disadvantage cardholders before the law could take effect. Using credit bureau data as well as individual data from a survey of U.S. consumers, we test whether banks closed consumers’ credit card accounts or otherwise restricted access to credit just before the enactment of the CARD Act. Because the period prior to the enactment of the CARD Act coincided with the financial crisis and recession, causality in this case is particularly difficult to establish. We find evidence that a higher fraction of credit card accounts were closed following the Federal Reserve Board’s adoption of its credit card rules. However, we do not find evidence that banks closed credit card accounts or deteriorated terms of credit card plans at a higher rate between the time when the CARD Act was signed and when its provisions became law. JEL Codes: D14, D18, G28 When this paper was written Vikram Jambulapati was a research assistant at the Federal Reserve Bank of Boston. He is now a Ph.D.
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GET the FACTS! Capital One’S Business Practices Raise Concerns About Its Corporate Governance
GET THE FACTS! Capital One’s Business Practices Raise Concerns about its Corporate Governance Decision-makers and advocates need to know the critical facts about Capital One and its corporate practices. Empire Building at its Best? In less than 5 years, Capital One is poised to triple its asset base. Total Assets (in millions) 300 292 200 198 170 150 151 166 100 89 0 2005 2007 2009 2011 (Projected) u Since Capital One became a banking institution in 2005, it has pursued an aggressive growth strategy that has been described by analysts as “empire building at its best.” National Community Reinvestment Coalition • 727 15th St, NW, Washington, DC 20005 • 202-628-8866 • http://www.ncrc.org 1 The Rejection of Diversification in Favor of a High-Risk, Monoline Strategy: 75 percent of Capital One’s income, and 66 percent of its revenue, comes from a single source: credit cards. 2010 Income Analysis: 2010 Revenue Analysis: -3% -10% 5% 9% 30% 75% 28% 66% Credit Cards Credit Cards Consumer Banking Consumer Banking Commercial Banking Commercial Banking Other Other u Diversification allows a bank to reduce risk by relying on varied products for income and revenue, shielding it from downturns. Capital One, however, rejects diversification in favor of a monoline strategy. This high-risk approach—and the institutions that embraced it— were at the heart of America’s last financial crisis. National Community Reinvestment Coalition • 727 15th St, NW, Washington, DC 20005 • 202-628-8866 • http://www.ncrc.org 2 Capital One’s Idea of Consumer Banking? Give the Public Subprime Auto-Loans.
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Concise Encyclopedia of the Great Recession, 2007-2010
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Creating a Consumer Financial Protection Agency: a Cornerstone of America’S New Economic Foundation
S. HRG. 111–274 CREATING A CONSUMER FINANCIAL PROTECTION AGENCY: A CORNERSTONE OF AMERICA’S NEW ECONOMIC FOUNDATION HEARING BEFORE THE COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS UNITED STATES SENATE ONE HUNDRED ELEVENTH CONGRESS FIRST SESSION ON THE CREATION OF A CONSUMER FINANCIAL PROTECTION AGENCY TO BE THE CORNERSTONE OF AMERICA’S NEW ECONOMIC FOUNDATION JULY 14, 2009 Printed for the use of the Committee on Banking, Housing, and Urban Affairs ( Available at: http://www.access.gpo.gov/congress/senate/senate05sh.html U.S. GOVERNMENT PRINTING OFFICE 54–789 PDF WASHINGTON : 2010 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS CHRISTOPHER J. DODD, Connecticut, Chairman TIM JOHNSON, South Dakota RICHARD C. SHELBY, Alabama JACK REED, Rhode Island ROBERT F. BENNETT, Utah CHARLES E. SCHUMER, New York JIM BUNNING, Kentucky EVAN BAYH, Indiana MIKE CRAPO, Idaho ROBERT MENENDEZ, New Jersey MEL MARTINEZ, Florida DANIEL K. AKAKA, Hawaii BOB CORKER, Tennessee SHERROD BROWN, Ohio JIM DEMINT, South Carolina JON TESTER, Montana DAVID VITTER, Louisiana HERB KOHL, Wisconsin MIKE JOHANNS, Nebraska MARK R. WARNER, Virginia KAY BAILEY HUTCHISON, Texas JEFF MERKLEY, Oregon MICHAEL F. BENNET, Colorado EDWARD SILVERMAN, Staff Director WILLIAM D. DUHNKE, Republican Staff Director AMY S. FRIEND, Chief Counsel JONATHAN N. MILLER, Professional Staff Member KARA STEIN, Legislative Assistant RANDALL FASNACHT, GAO Detailee MARK OESTERLE, Republican Chief Counsel ANDREW J. OLMEM, JR., Republican Counsel DAWN RATLIFF, Chief Clerk DEVIN HARTLEY, Hearing Clerk SHELVIN SIMMONS, IT Director JIM CROWELL, Editor (II) CONTENTS TUESDAY, JULY 14, 2009 Page Opening statement of Chairman Dodd .................................................................
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Making Prepaid Safe for Consumers: a Framework for Providing Deposit Insurance and Regulation E Protections
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Congressional Record—House H11257
October 13, 2009 CONGRESSIONAL RECORD — HOUSE H11257 DAVID R. OBEY, which have not been any part of a pat- As a cosponsor of this important DAVID E. PRICE, tern of abuse of credit cards, were inad- change which will simply ensure that JOSE´ E. SERRANO, vertently swept into this. the 21-day requirement only applies to CIRO D. RODRIGUEZ, The gentleman from Vermont (Mr. credit card accounts, I urge immediate C. A. DUTCH WELCH) and the gentleman from Mis- passage of H.R. 3606. RUPPERSBERGER, souri (Mr. SKELTON) called this to the I reserve the balance of my time. ALAN B. MOLLOHAN, NITA M. LOWEY, attention of the committee, as did the Mr. FRANK of Massachusetts. I yield LUCILLE ROYBAL-ALLARD, National Credit Union Administration 4 minutes to the gentleman from SAM FARR, and the Credit Union National Associa- Vermont, the lead author of this bill, STEVEN R. ROTHMAN, tion; the latter, of course, being the Mr. WELCH. Managers on the Part of the House. private association of credit unions, Mr. WELCH. I thank the gentleman from Massachusetts (Mr. FRANK) and ROBERT C. BYRD, the former being the administrative DANIEL K. INOUYE, agency. They asked us to fix it. They my colleague. I thank the gentleman PATRICK J. LEAHY were quite correct. from New York (Mr. LEE) and Mr. (with a reservation Credit unions are a very important SKELTON. on the EB–5 agree- part of the structure of this country You know, Mr. Speaker, one of the ment), and it serves our consumers. And so things the American people have a BARBARA A.
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Credit Card Accountability, Responsibility and Disclosure Act of 2009: Protecting Young Consumers Or Impinging on Their Rf Eedom Kathryn Wood
Brooklyn Journal of Corporate, Financial & Commercial Law Volume 5 | Issue 1 Article 7 2010 Credit Card Accountability, Responsibility and Disclosure Act of 2009: Protecting Young Consumers or Impinging on Their rF eedom Kathryn Wood Follow this and additional works at: https://brooklynworks.brooklaw.edu/bjcfcl Recommended Citation Kathryn Wood, Credit Card Accountability, Responsibility and Disclosure Act of 2009: Protecting Young Consumers or Impinging on Their Freedom, 5 Brook. J. Corp. Fin. & Com. L. (2010). Available at: https://brooklynworks.brooklaw.edu/bjcfcl/vol5/iss1/7 This Note is brought to you for free and open access by the Law Journals at BrooklynWorks. It has been accepted for inclusion in Brooklyn Journal of Corporate, Financial & Commercial Law by an authorized editor of BrooklynWorks. NOTES CREDIT CARD ACCOUNTABILITY, RESPONSIBILITY AND DISCLOSURE ACT OF 2009: PROTECTING YOUNG CONSUMERS OR IMPINGING ON THEIR FINANCIAL FREEDOM? INTRODUCTION There are an estimated 1.22 billion credit cards in the United States.1 The average adult has about five credit cards.2 This increased use of credit has led to substantial debt and an increase in bankruptcy filings across the nation.3 College students are not immune to this trend.4 Although reports vary on the number of college students with credit cards, students are a well known market for credit card issuers.5 According to a 2001 Government Accountability Office (GAO) Report, almost “two-thirds of all college students had at least one credit card . .”6 In fact, of the nearly 9.9 million students currently enrolled at four-year colleges, each has an average of 2.8 cards.7 Estimates of credit card debt upon graduation range from $2,2008 to 1.
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Title X – Bureau of Consumer Financial 1955 7 Protection
TABLE OF CONTENTS Stat. Page No. PDF Page No. TITLE X – BUREAU OF CONSUMER FINANCIAL 1955 7 PROTECTION Sec. 1001. Short title 1955 7 Sec. 1002. Definitions 1955 7 Subtitle A – Bureau of Consumer Financial Protection 1964 16 Sec. 1011. Establishment of the Bureau of Consumer 1964 16 Financial Protection Sec. 1012. Executive and Administrative powers 1965 17 Sec. 1013. Administration 1966 18 Sec. 1014. Consumer Advisory Board 1974 26 Sec. 1015. Coordination 1974 26 Sec. 1016. Appearances before and reports to Congress 1974 26 Sec. 1017. Funding; penalties and fines 1975 27 Sec. 1018. Effective date 1979 31 Subtitle B – General Powers of the Bureau 1979 31 Sec. 1021. Purpose, objectives, and functions 1979 31 Sec. 1022. Rulemaking authority 1980 32 Sec. 1023. Review of Bureau regulations 1985 37 Sec. 1024. Supervision of nondepository covered 1987 39 persons Sec. 1025. Supervision of very large banks, savings 1990 42 associations, and credit unions Sec. 1026. Other banks, savings associations, and credit 1993 45 unions 1 Stat. Page No. PDF Page No. Sec. 1027. Limitations on authorities of the Bureau; 1995 47 preservation of authorities Sec. 1028. Authority to restrict mandatory pre-dispute 2003 55 arbitration Sec. 1029. Exclusion for auto dealers 2004 56 Sec. 1029A Effective date 2005 57 Subtitle C – Specific Bureau Authorities 2005 57 Sec. 1031. Prohibiting unfair, deceptive, or abusive acts 2005 57 or practices Sec. 1032. Disclosures 2006 58 Sec. 1033. Consumer rights to access information 2008 60 Sec. 1034. Response to consumer complaints and 2008 60 inquiries Sec. 1035. Private education loan ombudsman 2009 61 Sec.
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Arbitration and Consumer Credit Peter B
Digital Commons @ Georgia Law Working Papers Faculty Scholarship 3-1-2012 Arbitration and Consumer Credit Peter B. Rutledge University of Georgia Law School, [email protected] Christopher R. Drahozal University of Kansas School of Law Repository Citation Rutledge, Peter B. and Drahozal, Christopher R., "Arbitration and Consumer Credit" (2012). Working Papers. Paper 80. http://digitalcommons.law.uga.edu/fac_wp/80 This Article is brought to you for free and open access by the Faculty Scholarship at Digital Commons @ Georgia Law. It has been accepted for inclusion in Working Papers by an authorized administrator of Digital Commons @ Georgia Law. For more information, please contact [email protected]. Arbitration and Consumer Credit Christopher R. Drahozal* Peter B. Rutledge** Abstract This paper uses a newly available database of consumer credit card agreements to take the first, in-depth empirical look at why credit card issuers use arbitration clauses. Based on a sample of credit card agreements made available by 298 issuers under the Credit Card Accountability Responsibility and Disclosure Act of 2009, it finds that while most credit card loans outstanding (95.1%) are subject to cardholder agreements with arbitration clauses, the substantial majority of credit card issuers (247 of 298, or 82.9%) do not use arbitration clauses in their credit card agreements. The paper also finds that credit card issuers are more likely to use arbitration clauses when they (1) specialize in making credit card loans; (2) make riskier credit card loans; and (3) have a larger credit card portfolio. Conversely, issuers are less likely to use arbitration clauses when they are (1) mutually owned (i.e., credit unions) rather than shareholder- owned (i.e., banks); and (2) are located in states in which class arbitration waivers are unenforceable.
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Finance and Economics Discussion Series Divisions of Research & Statistics and Monetary Affairs Federal Reserve Board, Washington, D.C
Finance and Economics Discussion Series Divisions of Research & Statistics and Monetary Affairs Federal Reserve Board, Washington, D.C. Does Price Regulation Affect Competition? Evidence from Credit Card Solicitations Yiwei Dou, Geng Li, and Joshua Ronen 2019-018 Please cite this paper as: Dou, Yiwei, Geng Li, and Joshua Ronen (2019). \Does Price Regulation Affect Com- petition? Evidence from Credit Card Solicitations," Finance and Economics Discus- sion Series 2019-018. Washington: Board of Governors of the Federal Reserve System, https://doi.org/10.17016/FEDS.2019.018. NOTE: Staff working papers in the Finance and Economics Discussion Series (FEDS) are preliminary materials circulated to stimulate discussion and critical comment. The analysis and conclusions set forth are those of the authors and do not indicate concurrence by other members of the research staff or the Board of Governors. References in publications to the Finance and Economics Discussion Series (other than acknowledgement) should be cleared with the author(s) to protect the tentative character of these papers. Does Price Regulation Affect Competition? Evidence from Credit Card Solicitations Yiwei Dou New York University Geng Li Federal Reserve Board Joshua Ronen New York University February 2019 We study the unintended consequences of consumer financial regulations, focusing on the CARD Act, which restricts consumer credit card issuers’ ability to raise interest rates. We estimate the competitive responsiveness—the degree to which a credit card issuer changes offered interest rates in response to changes in interest rates offered by its competitors—as a measure of competition in the credit card market. Using small business card offers, which are not subject to the Act, as a control group, we find a significant decline in the competitive responsiveness after the Act.
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Good Practices for Financial Consumer Protection by Financial Service
Public Disclosure Authorized Good Practices for Financial Consumer Public Disclosure Authorized Protection Public Disclosure Authorized The World Bank Financial Inclusion Practice Public Disclosure Authorized Financial and Private Sector Network June 2012 The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent. Acknowledgements Good Practices for Financial Consumer Protection was prepared by a team led by Susan L. Rutledge, Senior Private Sector Development Specialist at the World Bank. The core team consisted of Nagavalli Annamalai (Lead Counsel), Rodney Lester (Senior Advisor, Retired), and Richard L. Symonds (Senior Counsel, Retired), all from the World Bank. They were joined by Eric Haythorne (Lead Counsel, Retired) and Juan Carlos Izaguirre Araujo (Consultant) also from the World Bank. Also joining the team was Nicola Jentzsch, then Senior Research Fellow, Technische Universität Berlin. In addition, valuable contributions were made by Milton Cartwright, Manager Pensions and Investment Policy of United Kingdom’s Financial Services Authority and David Stallibrass of the Office of Fair Trading of the United Kingdom. Special thanks also go to Shaun Mundy, international consultant on financial literacy and former Head of Financial Capability Department of the United Kingdom’s Financial Services Authority, Rosamund Grady, Conjoint Professor and Chief Executive Officer at the Sydney-based Centre for International Finance and Regulation, John Pyne, Associate Director of Insurance Supervision at the Qatar Financial Centre Regulatory Authority, and Patrick McAllister, Director of Housing Finance in Asia/Pacific at Habitat for Humanity International.
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