Compliance Monitor eyes Fair Credit Reporting Act
July 2, 2014 – NAFCU Regulatory Compliance Counsel Brandy Bruyere addressed frequently asked questions on the Fair Credit Reporting Act and prescreened offers of credit for this month’s Compliance Monitor.
“Prescreening can be an efficient use of resources as it allows credit unions to market products to those members who are most likely to be approved,” Bruyere wrote. “However, these programs come with compliance issues that can be complicated particularly because the FCRA and its accompanying Regulation V are not always clear on some of the nuanced ways these programs can be crafted.”
Bruyere examined the most frequently raised topics the regulatory compliance team encounters – including the definition of a firm offer of credit, and the appropriateness of using phrases like “pre-approved” in solicitations.
Also in the Monitor, Law Clerk Eliott Ponte wrote about NCUA’s clarification of its amended credit union service organization rule, which went into effect on June 30; the clarification addresses what kind of relationships between credit unions and CUSOs require contractual amendments under the rule. Finally, the “Compliance Forum” addressed questions about the Biggert-Watters Act, nominating committees, usury ceilings and promotional items for marketing purposes.
NAFCU Compliance Monitor