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Friday, August 28, 2015

This Week at the CFPB

A summary of this week's news about the CFPB from the ABIA and ABA Dodd-Frank Tracker:
The ABIA has a Task Force of members that work on issues related to the CFPB's regulation of insurance products. If you are an ABIA member and would like to learn more about ABIA's work with CFPB to educate them about the bank-insurance industry or join our CFPB Task Force, please contact us and visit our website.

Thursday, August 27, 2015

CFPB Releases Report on Credit Reporting Complaints

By ABIA Outside Counsel, McIntyre & Lemon, PLLC

The CFPB has released its monthly snapshot on consumer credit reporting complaints.

According to the CFPB snapshot, there has been a sharp increase in complaints from last month and last year, the majority related to inaccurate data on the reports. As of August 1, 2015, the CFPB has handled 677,200 complaints nationally and has seen a rising trend in complaints stemming from the Los Angeles, CA metro area.

Since 2012, The Bureau has handled approximately 105,000 complaints under its supervision of the largest credit reporting agencies in the country, with a reach of 200 million consumers and accounting for 95 percent of the credit reporting market’s annual receipts.

Some findings of the report include:
  • A 56 percent increase in credit reporting complaints submitted from June to July 2015;
  • That 77 percent of complaints involved incorrect information on reports, affecting consumers’ credit scores;
  • Consumers being subjected to rigorous online identity authentication questions and/or having to undergo time-consuming and potentially insecure processes in order to receive their credit reports;
  • That 97 percent of complaints submitted between March and May 2015 involved three nationwide credit reporting agencies;
  • That the most complained about financial product or service for July 2015 was debt collection;
  • That consumer loan complaints, including pawn loans, title loans, and installment loans showed the greatest percentage increase of 61 percent in a year-to-year comparison; and
  • Hawaii, Maine, Georgia and North Carolina showed the highest complained volume increases from a year ago.
The data in the report is based on a three-month rolling average of complaints reflecting the 60 days that companies are given to respond to complaints.

CFPB Press Release.

CFPB Report.

CFPB Guidance.

CFPB Consumer Complaint Database.

Friday, August 21, 2015

ABIA Attends NAIC Meeting in Chicago

The National Association of Insurance Commissioners (NAIC) met in Chicago August 15-18, 2015. ABIA's Kevin McKechnie and outside counsel Chrys Lemon, McIntyre & Lemon, PLLC attended the meeting in Chicago.

Read summary of NAIC meeting provided by ABIA outside counsel, McIntyre & Lemon, PLLC.

Massachusetts Releases Division of Bank Final Flood Insurance Regulation

This week, Massachusetts filed the Massachusetts Division of Banks Final Flood Regulation.  The new regulation will become effective on September 11, 2015.

View 209 CMR 57.00.

If you have any questions or comments about the new regulation, please contact ABIA's Kevin McKechnie.

ABIA Hosts Compliance Webinar on Bank Secrecy Act and Anti-Money Laundering Compliance

This week, the American Bankers Insurance Association (ABIA) outside counsel Chrys Lemon and Michael Aphibal, McIntyre & Lemon, PLLC hosted a Compliance Webnar on Bank Secrecy Act and Anti-Money Laundering Compliance. Insurance products can be used to launder money, so banks and insurance companies are required to have a BSA/AML compliance program. These institutions usually require insurance agencies to assist with compliance. The webinar will identify which insurance products and activities could be used to launder money and describe how a bank-insurance agency should respond to those activities. The webinar provided an overview of Customer Identification Programs, Office of Foreign Assets Control (OFAC) regulations, and customer due diligence requirements for financial institutions.

View the presentation. 

Download the recording.