Laws and Regulations Flashcards
implemented to an unequivocally forbid banks and other entities that are creditors to discriminate on a prohibited basis. These provisions apply to the banks activities before, during, and after the extension of credit. This would include prohibition on the basis of race, color, religion, national origin, sex, marital status, age, whether all or part of the applicant’s income is derived from public assistance, and because the applicant has exercised a right under the consumer credit protection act.
The marketer must be cautious not to do anything that would discourage any particular group from applying for bank loans.
This regulation requires banks to preserve all written or recorded information connected with an application for 25 months, 12 months for business credit, after the date on which the bank informed the applicant of action taken on an application or of incompleteness of an application. This also applies when a bank makes an offer of credit to potential customers
Regulation B
Truth in savings
The Federal Reserve Board regulation that implements the truth in savings act. The purpose of this Reg is to ensure that consumers have comparable and consistently formatted information with which to make informed decisions about accounts at depository institutions.
Regulation DD
Truth in lending
The Federal Reserve Board regulation governing the advertising of credit services. The purpose of rags he is to help consumers make informed decisions about credit by requiring banks to disclose in consistent and uniform ways the terms and cost of credit. Applies to open and closed and credit.
Greg is the affects the marketer who advertises and markets any loan product or service. A marketer must clearly disclose certain facts, present information in a consistent and compliant manner, and ensure that all marketing and advertising media used meet the regulatory requirement.
Regulation Z
Legislation enacted in 1999 that, among other things, gives banking institutions the ability to offer any financial product or service and prohibits non-bank entities from owning and operating a banking institution
Gramm-Leach-Bliley act
A law governing the disclosure of rates and terms on interest bearing deposit accounts. It was implemented through Federal Reserve Board regulation DD on June 21, 1993.
Truth in savings act
contains rules governing prescreening, the practice of searching the files of credit reporting agency is our credit bureaus for names and addresses of individuals who meet certain credit requirements. Marketers commonly use prescreening to generate mailing list for promoting credit or insurance products to consumers. Act specifies the process that a bank or other creditor must follow in order to have access to a consumers credit file for pre-screening purposes.
added a new section that limits the availability of affiliated companies to use shared consumer report data for marketing purposes
fair credit reporting act
passed by Congress in 1974 and stands for real estate settlement procedures act. It was created to address problems in the real estate settlement process including abusive practices that increased cost to homebuyers, lack of consumer understanding about the settlement process and costs.
RESPA
A 1977 law requiring financial institutions to meet the credit needs of low and moderate income segments of communities they serve, to inform the target market of their availability, and to report on the extent of their investment in the areas they serve. A 1989 policy statement expanded the way regulators evaluate Bank … programs
Community reinvestment act (CRA)
Legislation and acted in 2003 that requires unsolicited commercial email messages to be labeled and to include opt out instructions and the sender’s physical address. stands for controlling the assault of non-solicited pornographic and marketing.
CAN SPAM Act
The removal or liberalization of legal restrictions to promote competition. This may include price … which is the removal of interest-rate ceilings, product …which is the regulatory approval allowing Banks to offer more diversified products and services, and geographic …which removes the restrictions that prohibited expansion across state lines.
Deregulation
Unfair deceptive abusive acts and practices
Under this written disclosures in the text or FinePrint of a footnote May be insufficient to correct a misleading headline
UDAAP
Your bank is developing its website, which you have been asked to review. You should advise the developers that, according to Reg. DD, the term “Member FDIC “ must appear on:
a. only those pages that discuss any type of loan products
b. only those pages that explain bank deposit products
c. only those pages that explain the bank’s investment products
d. all pages except those that advertise non-deposit products or insurance
b. only those pages that explain bank deposit products
A 1977 law requiring financial institutions to meet the credit needs of low and moderate income segments of communities they serve, to inform the target market of their availability, and to report on the extent of their investment in the areas they serve.
CRA
