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New on the Compliance Blog: DOJ investigation on gift card schemes, NCUA overturns CAMEL rating on appeal, and more
As credit unions work to meet the needs of more than 127 million Americans during the coronavirus pandemic, NAFCU's award-winning regulatory compliance team continues to keep credit unions informed with new posts on the Compliance Blog every Monday, Wednesday, and Friday.
Here's a roundup of what's new this week:
DOJ Investigates the Use of Gift Cards in Financial Schemes: NAFCU Regulatory Compliance Counsel Justin White dives into the Department of Justice’s (DOJ) investigation on the use of gift cards in financial schemes, particularly targeting unsuspecting elderly victims. White notes that the Federal Trade Commission (FTC) calculated that in 2020, Americans 60 years or older lost at least $602 million dollars due to fraud, scams, and other financial exploitation schemes. The Transnational Elder Fraud Strike force in the Northern District of Georgia announced the indictment of six defendants for scamming the elderly in a fraud gift card scheme in order to launder the proceeds.
NCUA Overturns CAMEL Rating On Appeal: In Wednesday’s blog, NAFCU Regulatory Compliance Counsel Rebecca Tetreau covers the NCUA’s decision to overturn a CAMEL rating appeal in favor of an unnamed credit union; the process took nearly two full years before the final decision was announced. Tetreau explains the actions credit unions must take before going before the Supervisory Review Committee (SRC). In this particular case, said credit union completed almost each step before reaching the NCUA Board, which resulted in the credit union’s CAMEL rating going from a 3 to a 2. NAFCU last month issued a Final Regulation Summary to break down changes to the NCUA’s CAMELS rating system.
Fall 2021 CFPB Supervisory Highlights Part I: Regulation E/P2P, Credit Cards, and Fair Lending: In today’s blog, NAFCU Vice President of Regulatory Compliance and Senior Counsel Brandy Bruyere provides a summary of key items from the CFPB’s Supervisory Highlights report. The report reveals legal violations identified by the bureau during the first half of 2021. Of note, Bruyere outlines the report’s findings on Regulation E, credit card accounts, and fair lending violations.
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