In the past few years, the CFPB and other regulators have used their authority to cite institutions for charging alleged junk fees and to cap others. Recently, the regulators have taken a number of actions which they have stated are intended to curb so-called junk fees.
On March 15, 2024, the CFPB published a final rule amending Regulation Z’s credit card penalty fee provisions. 89 FR 19128. Among other things, the final rule caps Regulation Z’s credit card late fee safe harbor at $8 for certain institutions. These amendments become effective May 14, 2024. Also on March 15, 2024, the NCUA announced that it had finalized a new overdraft and NSF fee reporting requirement applicable to credit unions with more than $1 billion in assets. In February 2024, the California Attorney General published a letter warning financial institutions that certain overdraft-related fee practices may be UDAP per se. In January 2024, the CFPB published two rules concerning overdraft and NSF fees.
Because it appears that certain fees continue to be under regulatory scrutiny and present heightened UDAP/UDAAP risk, institutions are encouraged to keep apprised of the continuous stream of recent regulatory developments on this topic. This presentation will provide an overview of the regulators’ 2024 fee-related actions.
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Friday, April 19, 2024
12:00 - 1:30 p.m.
Among other things, the federal Telephone Consumer Protection Act, 47 USC 227 et seq. (TCPA) and the FCC’s implementing regulations, 47 CFR 64.1100 et seq., contain rules regarding telemarketing and informational calls and text messages that are made using autodialer, artificial-voice, or prerecorded-voice technology (collectively referred to herein as “autodialed communications”). The TCPA and the FCC’s related regulations apply without exception to financial institutions, including banks, savings associations, and credit unions that make autodialed communications to customers.
A number of recent TCPA-related developments have occurred. In January 2024, federal legislation was introduced which, if signed into law, would revise and expand the scope of the TCPA’s coverage. In February 2024, the FCC published guidance on the TCPA’s application to certain artificial intelligence-related functionalities. In March 2024, the FCC published a final rule and order which is intended to clarify what constitutes a valid revocation by a consumer of their consent to be contacted. In November 2023, the OCC revised its TCPA examination procedures.
The penalties for TCPA violations can be staggering. As such, it is important for financial institutions to maintain careful, robust and comprehensive policies, procedures and practices related to TCPA compliance. This presentation will discuss recent developments and areas of heightened TCPA non-compliance risk.
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