December 28, 2023

New on the Compliance Blog: CDFI fair lending requirements, car sales, Reg E consent

Compliance BlogAs credit unions work to meet the needs of nearly 140 million Americans, NAFCU's award-winning regulatory compliance team continues to keep credit unions informed with new posts on the Compliance Blog every Wednesday.

Here’s a look at the last two posts:

Additional Fair Lending requirements for CDFIs; Car Sales Rule: Director of Regulatory Compliance Nick St. John details the additional fair lending requirements Community Development Financial Institutions (CDFI) must follow. St. John notes that “it is not uncommon for other entities or institutions to be covered by these laws as a result of receiving a federal grant or other funds.” He adds that since CDFIs receive funding from the Treasury, they may need to comply with specific regulations.

St. John also discusses the Federal Trade Commission’s (FTC) final rule regarding car sales. He explains that “the rule applies to ‘covered motor vehicle dealers’ and thus applies to auto dealerships and does not apply directly to credit unions. However, the rule may affect auto dealers that participate in indirect lending relationships with credit unions and may be of particular interest to state-chartered credit unions within the FTC’s jurisdiction.”

Oral Consent for Regulation E Overdraft Opt-In: Regulatory Compliance Counsel Tara Simpson notes that credit unions can obtain oral consent for overdraft service opt-in; however, credit unions must provide details of the service in writing prior to obtaining consumer consent. Simpson also says that “after receiving consent, credit unions should provide the consumer ‘with confirmation of the consumer’s consent in writing’ (or electronically if the consumer agrees to it).”

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