Compliance Blog

Editor's Note: The Fed just released a proposed rule for the remaining portions of the Credit CARD Act that have to be implemented.  The link takes you to an overview page, which also provides a link to the tiny 157-page proposal.  I'll have more on this tomorrow.

Posted by Anthony Demangone

Flood insurance.  The President has signed the Temporary Extension Act of 2010, which temporarily extends the National Flood Insurance Program through...March 28, 2010.

Free credit report commercials.  OK, I realize that this doesn't directly affect you.  But I hate these commercials, even if some of them have catchy songs and jingles.  Here's why: the commercials often mislead consumers.  The ads often imply that a company provides a free credit report, but the company may require the consumer to sign up and pay for some service to get it.  And along the way, the advertisement somehow neglects to mention that consumers already have access to a free copy of their credit report. Well, no more.  At least not after April 2.  The Federal Register has published a final rule issued by the FTC to clean up these advertisements a bit, as required by the Credit CARD Act.

To that end, the Commission amends the Free Annual File Disclosures Rule to require certain advertisements for ‘‘free credit reports’’ to include prominent disclosures designed to prevent consumers from confusing these ‘‘free’’ offers with the federally mandated free annual file disclosures available through the single centralized source. In addition, the final amended Rule requires nationwide consumer reporting agencies to delay advertisements for products and services through the centralized source until after consumers receive their free annual file disclosures, and prohibits other practices that may interfere with the free annual file disclosure process.

Amen, to that.  I really can't tell you how much I hate those commercials.  The thought that some consumer, my grandmother, for example, has to pay $29.95 a month to get a free credit report burns me.

Member complaints.  The most recent issue of The NCUA Report highlights how NCUA handles member complaints.  The issue also highlights recent Board actions and organizational changes within NCUA.  It is a good read.  Also, the portion regarding member complaints is a good item to share with your member service division.  Member complaints can find their way to NCUA, and understanding how NCUA handles those complaints may affect how you handle member "feedback."