On May 17, 2024, the Federal Deposit Insurance Corporation (FDIC) announced a settlement with an Arkansas bank and nine of its employees, resolving allegations that the bank and the employees violated Section 5 of the Federal Trade Commission Act (FTC Act), Section 8 of the Real Estate Settlement Procedures Act (RESPA), the Fair Credit Reporting Act (FCRA),…
On March 24, 2023, the Federal Deposit Insurance Corporation (FDIC) announced that it had issued an advisory letter to a United States-based neobank, demanding that the company immediately cease and desist and take immediate corrective action to address allegedly false and misleading statements regarding the company’s insured status under the Federal Deposit…
On March 10, 2023, the United States suffered the first major bank failure since the 2008 economic collapse. It was the nation’s 16th largest bank, with over $200 billion in assets. Specifically, the California Department of Financial Protection and Innovation (DFPI) closed Silicon Valley Bank (SVB). Various warning signs earlier…
On February 15, 2023, the Federal Deposit Insurance Corporation (FDIC) announced that it has issued letters to four entities demanding that they cease and desist from certain statements they made about FDIC deposit insurance. The entities consist of a cryptocurrency exchange, a non-bank financial provider, and two websites. The FDIC alleges that…
On May 17, 2022, the Federal Deposit Insurance Corporation (FDIC) announced its adoption of a final rule implementing Section 18(a)(4) of the Federal Deposit Insurance Act, which prohibits any person from misusing the FDIC’s name or logo to misrepresent their deposit insurance status. The final rule establishes the process by…
In August 2021, the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Board of Governors of the Federal Reserve System (the Federal Reserve and, collectively with the OCC and the FDIC, the Agencies) released a joint bulletin titled “Conducting Due Diligence on…
The Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency (OCC) released an interagency statement on July 20, 2021 that all three agencies will act together to revise their regulations implementing the Community Reinvestment Act (CRA). The OCC also…
On May 10, 2021, the Federal Deposit Insurance Corporation (FDIC) announced a settlement with an Oregon-based bank concerning the bank’s alleged violations of Section 5 of the Federal Trade Commission Act (FTC Act), 15 U.S.C. § 45(a)(1). Under the settlement, the bank stipulated to the issuance of an order to pay a civil money penalty of $1.8 million. The FDIC…
On January 19, 2021, the Consumer Financial Protection Bureau (CFPB) issued a new final rule implementing the Fair Debt Collection Practices Act (FDCPA). According the CFPB’s press release, the purpose of the new final rule is to “clarif[y] the differences between regulations and supervisory guidance.” Specifically, “supervisory guidance does not…
On November 5, 2020, the Federal Register published five federal financial regulatory agencies’ invitation for comment on a notice of proposed rulemaking (NPR) that would codify the agencies’ Interagency Statement Clarifying the Role of Supervisory Guidance, as amended, which was issued on September 11, 2018 (2018 Statement). The 2018 Statement…
On August 20, 2020, seven states – California, Illinois, Massachusetts, Minnesota, New Jersey, New York, and North Carolina – and the District of Columbia (together, the States) filed suit against the Federal Deposit Insurance Corporation (FDIC) in the U.S. District Court for the Northern District of California. The lawsuit, captioned…
The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) issued Final Rules last month in an effort to address the “legal confusion” regarding the impact of the permissible interest when a bank transfers a loan to a third party. These Final Rules are…
On May 15, 2020, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively, Regulators), proposed a new final interim rule “that temporarily revises the supplementary leverage ratio calculation for depository institutions,” in order to “strengthen…
Last week, the Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corporation (FDIC) each issued a proposed rule designed to clarify that interest rates that are valid when a loan is made remain valid when the loan is transferred or sold. Together, the proposed rulemaking would…
On November 6, 2019, the Federal Deposit Insurance Corporation (FDIC) announced a settlement with a Seattle-based bank over alleged violations of the Real Estate Settlement Procedures Act (RESPA). According to the FDIC, the bank, through a now-discontinued business line, entered into certain co-marketing and desk rental arrangements with real estate brokers…
On September 30, 2019, the Federal Deposit Insurance Corporation (FDIC) announced a settlement with an Oregon-based bank over alleged violations of the Real Estate Settlement Procedures Act (RESPA) and Telephone Consumer Protection Act (TCPA). According to the FDIC, the bank agreed to pay and accept fees for the referral of home mortgage…
On October 18, the Federal Deposit Insurance Corporation (FDIC) issued an order requiring a Kentucky bank to pay civil money penalties. The order resolves allegations that the bank violated section 122(a) of the Truth in Lending Act (TILA), 15 U.S.C. § 1632(a), and section 1026.5(a)(1) of Regulation Z, 12 C.F.R. § 1026.5(a)(1) by failing…
On August 10, 2018, the Board of Governors of the Federal Reserve (“Board of Governors”) announced that a national bank had consented to the assessment of a civil money penalty totaling $8.6 million pursuant to the Federal Deposit Insurance Act, as amended, 12 U.S.C. §§ 1818(b)(3) and 1818(i)(2)(B), for engaging in…
On March 28, 2018, the Federal Deposit Insurance Corporation (“FDIC”) announced settlements with a bank and an affiliated lender (“Defendants”) relating to allegations of deceptive lending practices. According to the FDIC, the Defendants provided, as “debt-settlement products,” loans to borrowers who were heavily indebted, which loans had settlement fees of up…
On March 7, the Federal Deposit Insurance Corporation (FDIC) announced that it reached a settlement with a Delaware bank, resolving allegations that the bank engaged in unfair and deceptive practices in violation of Section 5 of the Federal Trade Commission Act (the “FTC Act”) and violated the Electronic Funds Transfer Act,…