Our Bank is considering using a "Request to Reinstate VISA Debit card and Account Overdraft Agreement" for customers continually overdrafting their account with their Debit Card. What are some of the compliance issues we may face?
Can a lender require a family member to sign on a loan?
Every place that I have looked states that you may pull a credit report for employment, for hiring, promotion, reassignment or retention. If you hire someone, and two days or a month later you pull a credit report, would that be considered permissible as ongoing employment?
Are risk mitigation programs such as collection rewrites and extensions subject to ECOA, and Reg B?
The bank is thinking about conducting a mass mailing of debit cards to all customers who do not currently have a card. I understand that this may be done so long as we follow Section 205.5 of Reg E. The question is, can we exclude customers age 70 and over from the mailing? All of our accounts have overdraft coverage. I am concerned that due to that fact, the regulators might construe the coverage to be incidental credit, which could potentially mean an age discrimination issue per ECOA. I know that the bank can offer a product that benefits persons over age 62. Do you think excluding those over 70 (or 62) would be a benefit or a detriment? Do you think we can exclude the customers over age 70? Do you think we could use Regulation B's definition of "open-end credit" to get around the "incidental credit" issue?
Among credit risk, market risk and operational risk, developing a good operational risk management program seems to be the most challenging. Can't our existing compliance processes (e.g., AML, Red Flags, GLBA, etc.) contribute to operational risk management?
Is it a violation of Reg B to offer a senior citizens account?
In the Guru Q&As Compliance Section of the Weekly Banker Briefing dated 3/25/2007, a question under the topic of <a href="http://www.bankersonline.com/compliance/guru2007/gurus_comp032607c.html">"Loan Denied to Illegal Alien-Adverse Action?"</a> piqued my curiosity. I agree with the gurus' assertion that an ECOA AAN is required and as credit is never pulled, obviously, FCRA is not a factor. I do, however, question the following: <ol><li>Isn't the OSC [202.6(b)(7)(1)] referring to resident and non-resident alien status, not ILLEGAL status? <li>If the FI is denying ALL ILLEGAL applicants, how does that have any bearing on National Origin? (Yes, I know, "ALL" is a huge word)</ol>Also, I'd make a call to ICE upon learning of the illegal status.
If two individuals have equal credit and other factors and one is granted a loan due to a non-bank related personal or business relationship with a bank officer, is this considered discriminatory from a fair lending/HMDA standpoint?
The financial institution I am at keeps copies of drivers licenses with the applicants' loan documentation. Should they be concerned about possible discrimination issues, because there is a picture of the applicant present when an application is processed for approval?