WASHINGTON (8/25/14)--New guidance issued by federal regulators has been issued to clarify that while credit practices rules for financial institutions have been repealed, the deceptive acts or practices in the former regulations are still not permissible.
The National Credit Union Administration, along with the Office of the Comptroller of the Currency (OCC), Federal Reserve and Federal Deposit Insurance Corp., have repealed rules as required by the Dodd-Frank Act.
However, the agencies continue to have supervisory and enforcement authority regarding unfair or deceptive acts or practices, which could include ones described in the repealed rules. The agencies may still find that statutory violations exist, even in the absence of a specific regulation governing the conduct, according to a joint press release from the agencies.
In addition, the OCCs existing guidance concerning unfair or deceptive acts or practices remains in effect.
If credit unions and other financial institutions engage in the unfair or deceptive practices described in these former credit practices rules, such conduct may violate the prohibition against unfair or deceptive practices in Section 5 of the Federal Trade Commission Act, as well as several sections of the Dodd-Frank Act.
Use the resource link below to access the full text of the guidance.