In its annual letter to the CFPB on its 2012 administrative and enforcement activities related to Regulations B (ECOA), E (Electronic Fund Transfers), Z (TILA) and M (Consumer Leasing), the FTC stressed that it is “committed to continuing its vigorous enforcement of [such regulations] and intends to do the same with other rules the CFPB issues.” The FTC shares enforcement authority with the CFPB under these regulations as to non-banks.
The FTC activities described in the letter include:
- TILA/Reg Z enforcement actions dealing with non-mortgage credit, including actions against five auto dealers for allegedly deceptive advertisements and an action against a payday lender and related entities for allegedly inaccurate disclosures.
- Enforcement actions against several companies for allegedly making false claims in connection with offering forensic mortgage loan audits to borrowers seeking loan modifications.
- Submission of a comment letter to the CFPB on its proposal for integrating the application and closing disclosures required by TILA and RESPA for mortgage loans.
- EFTA/Reg E enforcement actions, including actions against five sellers of goods and services for allegedly not obtaining consumer authorization for preauthorized electronic fund transfers established in connection with so-called negative option plans (plans where the consumer agrees to continued shipments of goods or receipt of services if the consumer does not cancel at the end of a trial period), an action against a payday lender for allegedly requiring electronic payments as a condition of obtaining loans, and an action against a retailer for allegedly conditioning credit on preauthorized transfers.
- Submission of a comment letter to the CFPB in response to the CFPB’s Advance Notice of Proposed Rulemaking seeking information on extending Reg E requirements to general purpose reloadable prepaid cards.