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Compliance Companion®
Standard Procedures Manuals (SPM)

Consumer Lending Compliance May 2023

Standard Procedures Manual #1 reviews all of the major federal and California laws and regulations relevant to consumer lending compliance. The Manual is organized around the life cycle of a consumer credit transaction, beginning with advertising and marketing, through processing an application, loan closing, loan servicing, and changes after closing – whether with the borrower’s consent or due to the consumer’s default. This approach allows for a review of each regulation at the stage in the life cycle of a consumer loan when the regulation is relevant.

Note that this Manual does not address mortgage lending compliance. Refer to BCG Standard Procedures Manual #8, Mortgage Lending Compliance, for the compliance requirements associated with mortgage lending.

This Manual addresses the following stages of a consumer loan:

  • Introduction and coverage of the major regulations, including TILA & Regulation Z; ECOA & Regulation B; Fair Credit Reporting Act; Military Lending Act; Servicemembers Civil Relief Act; and UDAP/UDAAP
  • Marketing, advertising and solicitations
  • Distributing the application
  • Receiving and processing the application
  • Loan closing
  • Contract and promissory note issues
  • Loan servicing
  • Subsequent changes
  • Creditor’s remedies on default
  • Penalties and liability

The Manual also addresses electronic disclosures in consumer lending under the E-SIGN Act.

SPM #1 also includes separate discussions regarding any unique compliance issues associated with the following types of consumer loan products:

  • Personal unsecured loans and lines of credit
  • Overdraft lines of credit
  • Credit cards
  • Loans secured by certificates of deposit
  • Loans secured by stock
  • Automobile lending (direct and indirect)
  • Automobile leasing
  • Manufactured homes, mobile homes and recreational vehicles

The main text of the Manual is 796 pages, plus 45 pages of appendixes.


Compliance Companion

Compliance Companion® is a one-stop regulatory compliance resource for financial institutions. This online compilation of 19 industry-leading compliance manuals, including this SPM #01, Consumer Lending Compliance, takes the legalese out of federal and California laws and regulations, making it easier to understand and keep up with ongoing compliance developments.

Published by Aldrich & Bonnefin, PLC, Compliance Companion® has many useful features including search capabilities, links to internal cross-references and web-based sources, as well as samples of dozens of forms, disclosures and notices.

This compliance resource can also be accessed from your mobile device, making it faster and easier to get the latest information on federal and California laws and regulations governing financial institutions.

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* Janet Bonnefin is retired from the practice of law with the firm.
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