John Zasada, Compliance Consulting Director, Financial Institutions Group

On May 13, 2020, the Consumer Financial Protection Bureau (CFPB) issued three FAQs on the compliance implications of providing payment and deposit assistance to consumers.

The FAQs make it clear financial institutions may change account terms, and if the changes are favorable to the consumer, these can be implemented immediately without advance notice. Regulations E and DD (and Part 707 of the National Credit Union Administration (NCUA)’s Rules and Regulations) permit providing immediate relief to consumers by changing account terms without advance notice where the change in terms is clearly favorable to the consumer. An example of this would be a financial institution reducing ATM fees from $3 to free. The CFPB does recommend notifying consumers of the change as soon as reasonably practicable. If a financial institution later chooses to raise the ATM fee back to $3, then advance notice requirements would apply.

For more information on how these new compliance measures impact your institution, contact Doeren Mayhew’s regulatory compliance specialists.