Vendor Guru Q&A - Compliance

Latest Compliance - Bankruptcy Topics

Recurring Charge on Closed Credit Card-Bankruptcy

06/21/2020

A recurring charge was processed on a credit card that was closed due to bankruptcy. It had originally been denied and then was allowed a few days later. Is this allowed per regulations?

Collection Communication for Demand Deposit Accts.

04/22/2018

Collection communication for demand deposit accounts (i.e., overdraft notices, NSF notices, request for payment, etc) - are we allowed to send such notices if we are aware of an active bankruptcy case? What if we are not made aware of the bankruptcy case?

Credit Reporting on Bankrupt Accounts

12/20/2015

We are dealing with the problem of credit reporting on bankrupt accounts. Our reporting is done at the loan level therefore non bankrupt co-borrowers are affected. Can we just suppress reporting?

How to Report Loan When Files for Bankruptcy

05/26/2014

When a customer files bankruptcy, can we report the loan as being charge off or does it have to be as bankruptcy?

Refuse to Cash Check if Charged Off/Bankruptcy?

12/16/2013

We have a charged off client who filed bankruptcy. Can we refuse to cash a check payable to them by one of our other clients?

Adverse Action Notices for Loan Declines

01/02/2012

If we have two applicants and one has excellent credit and one has bad credit and we decline the loan, is it required that we send out an Adverse Action Notice to the applicant with the good credit and indicate that the co-applicant does not meet the minimum standards?

Bank Responsibility: Refunding Provisional Credit

11/07/2011

REG E Question: A customer authorized a purchase for a product. The product has not been received and the customer contacted the company and found out that the company has filed for bankruptcy. Our customer then filed an unauthorized affidavit for his refund. Is the bank responsible for refunding the provisional credit when the customer did say in his response that he did authorized the purchase?

1099-C Cancellation of Debt - Personal Bankruptcy

11/16/2009

In the case of a personal bankruptcy, I noticed that the IRS rules say we are not required to file. Can we file anyway, and can we file at any time during the year, or should we wait until we prepare the 1098 statements?

Print Ad - Mortgage Lending Compliance

09/21/2009

One of our mortgage lenders would like to place an ad in the classified portion of the local newspaper. The ad reads: Have you filed bankruptcy or had your home foreclosed on in the past two years? Call [name] to get your credit checked. You may be eligible to purchase a home. Numerous programs available to be a homeowner again. Then she lists her name and cell phone. The bank is not mentioned. Does it need to be? Would this ad be considered compliant? What would make it compliant? Is this a bad idea?

Report Cancellation of Debt - Continue Collecting?

08/17/2009

If we report on a 1099-C cancellation of debt to the IRS, can we continue to pursue the debt or only accept voluntary payments? If we report, are we limiting ourselves on the possibility of recovery? I'm excluding bankruptcy issues. Can you provide the citation or source document information for further research?

Reg E on Official Checks

04/28/2024

If a customer did not receive their check in a timely manner in the mail after cashing in a Certificate of Deposit, can they file a Reg. E claim? The account was originally opened online.

UTMA Custodian Deceased, How to Handle

04/28/2024

My question is on a custodian account/UTMA when the minor reaches the age of majority. In this case the custodian did not close account prior to their death. Can the bank distribute funds to minor who is now over 21? What if the terms and conditions of the account say only the custodian can disburse funds: does that mean the “minor” has to get a new custodian assigned to allow for funds to be given to minor?

Do Cashier's Checks Expire?

04/28/2024

What is the expiration date on a Cashier's Check, or how do banks handle stale dated ones outstanding?

Procedures for Claims to Funds

04/21/2024

We received a "Notice of Freeze" from the Florida Department of Revenue on one of our customers. Is there a set procedure for handling such notices from a state authority or do they differ by bank and or the state the bank or the customer is in? Would this procedure be the same for an action from a governmental entity as from a private action like an unpaid debt?

Reg CC and Debit Card Deposits

04/21/2024

Under Reg CC, how are deposits made by debit card treated? (These might be a deposit at an ATM or a merchant refund on a debit card burchase, as examples.) Can we hold these for three days even for existing customers?

Latest Compliance - Bankruptcy Topics

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