Compliance Blog

Written by Steve Van Beek

FTC Rescinds Rules.  Last week, the Federal Trade Commission rescinded regulations that transferred over to the Consumer Financial Protection Bureau according to Dodd-Frank.  The FTC's regulations - including the publishing in the Electronic Code of Federal Regulations - will no longer be available and entities need to be sure to look to the CFPB's republished regulations.

The FTC's rescission notice indicated they would be removing the rules and including cross-references to the CFPB's regulations.  For example, 16 CFR 321.1 has been revised to:

"Cross-Reference:  The rules formally at 16 CFR 321 have been republished by the Consumer Financial Protection Bureau at 12 CFR 1014, "Mortgage Acts and Practices Advertising (Regulation N)."

I'm usually not a fan of cross-references, but this one makes a lot of sense.  In the future, anyone trying to find the rules that used to be located in 16 CFR 321 will be directed to the CFPB's rules in 12 CFR 1014.

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NCUA Following Soon?  It is expected that NCUA will take a similar action in the future and formally rescind the regulations they lost due to Dodd-Frank.  Prior to this occurring, it might be a good business practice to make a copy of the soon-to-be rescinded regulations to ensure your credit union has a copy of the regulations in effect in the past in the case of a member complaint, exam issue or lawsuit.  

Note:  The FTC's rescission was made effective immediately after publishing in the Federal Register.  As of this morning, the old, FTC regulations can no longer be found in the Electronic Code of Federal Regulations.