1. FCRA Proposed Rule on Risk-Based Pricing
Evervone know's that their credit score can effect their ability to get credit at the best price, or do they? The long-awaited risk-based pricing rules called for by the FACT Act of 2003 have finally been proposed. Congress wanted consumers to be notified when the credit they were offered was not at the best prices due to information contained in their consumer report. The proposed regulation is lengthy but will allow lenders three options for deciding who must receive notification: (i) perform a case-bycase analysis of each borrower; (ii) give a notice to every borrower who falls below a certain cutoff score; or (iii) give a full credit score disclosure to all applicants modeled on the credit score disclosure already required on residential mortgage loans. Regardless of which option is chosen, every creditor making consumer loans in the U.S. will be affected by this proposal. Our Handout and chapter meeting discussion will lay it all out.

2. Regulation DD Proposed Rule
In an effort to provide consumers with additional clarity regarding the consequences of accepting overdraft services, the Federal Reserve Board recently released a proposed rule. The proposal, which is a companion rule to the Unfair and Deceptive Acts or Practices Act ("UDAP") proposal issued the same day, intends to provide new disclosures about account terms and costs associated with overdrafts. Join us as we examine the new proposal and its efforts to assist consumers to better understand the impact of overdrafts and associated fees. We will discuss the proposed opt-out notices to be given to consumers before overdraft fees may be imposed, including the form, content and timing of the notices. We will also review the proposed method of disclosing the aggregate dollar amount totals for overdraft fees and returned item fees in a periodic statement.

3. Proposed Rule on Unfair or Deceptive Acts or Practices
On May 19, 2008 the Federal Reserve Board, along with the Office of Thrift Supervision and the National Credit Union Administration, issued proposed revisions to each respective agency's rules regarding unfair or deceptive acts or practices. The proposal is intended to prohibit financial institutions from engaging in certain acts or practices in connection with consumer credit card accounts as well as overdraft services for deposit accounts. We will examine the proposal and the seven separate practices involving consumer credit card accounts that are deemed "unfair or deceptive." These practices include inadequate grace periods before payments arc deemed to be late and interest rate increases on outstanding balances. In addition, we will review two proposed "unfair or deceptive" practices involving overdraft services. These practices include providing consumers with right to opt out and fees imposed from debit holds. Be sure to join us and hear whether your institution is currently engaged in any of the practices that the proposal deems "unfair or deceptive."

Top Of Page