On April 1, 2021, the FDIC’s final rule issued in December 2020 revising its brokered deposits regulation became effective. The full compliance date for the final rule is January 1, 2022. The rule established a new framework for analyzing whether deposits made through deposit arrangements qualify as “brokered deposits” and amended the methodology for calculating
Deposit Accounts
FDIC issues final rule on brokered deposits and interest rate limits applicable to less than well capitalized institutions
By Scott A. Coleman on
The FDIC has issued a final rule that establishes a new framework for analyzing whether deposits made through deposit arrangements qualify as “brokered deposits” and amends the methodology for calculating the interest rate restrictions that apply to less than well capitalized insured depository institutions (IDIs). The final rule, which includes material differences from the FDIC’s…
Nevada Supreme Court Cabins Statute Eliminating Limitations Period On Deposit Claims Against Banks
By Amy L. Schwartz & Dick Thomson on
Posted in Deposit Accounts, Litigation and Court Decisions
On November 20, 2020, the Nevada Supreme Court handed banks a significant victory by agreeing with the Defendant bank’s interpretation of a Nevada statute concerning the application of statutes of limitation.
In Cantlon v. Wells Fargo Bank, N.A., et al., addressing certified questions from the Bankruptcy Court for the District of Nevada, the Nevada Supreme…
This week’s podcast: CFPB exam findings in Summer 2020 Supervisory Highlights related to credit reporting (Fair Credit Reporting Act) and deposit accounts (Regulations E and DD)
By Barbara S. Mishkin on
We review the following findings and discuss their compliance implications: FCRA violations based on obtaining credit reports without a permissible purpose, incorrectly reporting the date of first delinquency, failing to conduct reasonable dispute investigations; Reg. E violations based on waivers of consumers’ dispute rights, use of incorrect date to determine timeliness of error notices, providing…
CFPB Summer 2020 Supervisory Highlights looks at consumer reporting, debt collection, deposits, fair lending, mortgage servicing, and payday lending
The CFPB has released the Summer 2020 edition of its Supervisory Highlights. The report discusses the Bureau’s examinations in the areas of consumer reporting, debt collection, deposits, fair lending, mortgage servicing, and payday lending that were completed between September 2019 and December 2019.
Key findings are described below.
Consumer reporting. CFPB examiners found:…
CFPB issues template for employee savings program under compliance assistance sandbox policy
By Taylor R. Gess on
The CFPB recently announced that it has issued a Compliance Assistance Statement of Terms Template (“CAST Template”) through its Compliance Assistance Sandbox Policy (“CAS Policy”) after receiving an application from Build Commonwealth, Inc. (“Commonwealth”).
The Commonwealth CAST Template can be used by employers as the basis for an application to the CFPB to obtain…
CFPB files lawsuit against My Loan Doctor and its founder for alleged deceptive marketing of deposit accounts
By Sarah E. Pruett on
The CFPB filed a complaint on July 6, 2020 in a New York federal district court against My Loan Doctor LLC (“Loan Doctor”) and its founder, Dr. Edgar Radjabli, for allegedly making false, misleading, and inaccurate marketing representations in violation of the Consumer Financial Protection Act’s prohibition against unfair, deceptive or abusive acts or practices.…
This week’s podcast: CARES Act Economic Impact Payments for individuals and Paycheck Protection Program loans for small businesses: are they subject to garnishment or setoff?
By Barbara S. Mishkin on
We look at the impact of federal and state law including relevant CARES Act provisions, state garnishment directives, and federal preemption, identify issues banks should consider in handling garnishments or exercising setoff rights, and offer suggestions for mitigation measures banks can take as they decide how to address the challenges in this area.
CFPB updates FAQs to discuss consumer assistance by financial services providers during COVID-19 pandemic
By Alan S. Kaplinsky on
The CFPB issued two sets of FAQs that discuss assistance that financial services providers can offer consumers during the COVID-19 pandemic.
One set of FAQs is directed at providers of checking, savings, or prepaid accounts. The FAQs deal with an account provider’s ability to change account terms and the ways account providers can provide immediate…
Federal Reserve issues interim final rule allowing depository institutions to suspend enforcement of six-per-month savings account transaction limit
By Glen P. Trudel & Scott A. Coleman on
Effective April 24, 2020, the Federal Reserve amended Regulation D to remove the six-per-month limit on transfers or withdrawals from the definition of a “savings deposit.” The amendment is set forth in an interim final rule published in the Federal Register on April 28. Comments on the interim final rule must be filed by June…