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#1648538 - 01/10/12 05:06 PM Business Credit and Reg B - - CFPB or OCC?
1 Peter 5:7 Offline
Diamond Poster
1 Peter 5:7
Joined: Jun 2001
Posts: 1,339
TX
Has anyone seen discussion around which federal agency should be disclosed in the ECOA notice in an adverse action notification where the application is for business credit?

On one hand, it seems that the CFPB should be listed as the agency administering compliance [after 1-1-13 per re-publication of regs] because Reg B is a "consumer" reg.

On the other, it could be argued that the CFPB does not have jurisdiction over business credit because it is not a "consumer financial product or service" as that term is defined in DF. In that case, a bank's prudential regulator should continue to be listed in the notice.

Opinions and links to guidance or other outside discussion requested. Thanks.
_________________________
Opinions are mine not my employer's, and should not be taken as legal advice.

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#1648952 - 01/10/12 09:29 PM Re: Business Credit and Reg B - - CFPB or OCC? 1 Peter 5:7
Reads Regs Offline
Diamond Poster
Joined: Nov 2004
Posts: 2,307
Regardless of whether it is business purpose or consumer purpose credit, I think you would use the appropriate agency listed in appendix A of the CFPB's Reg. B (12 CFR Part 1002). Appendix A to Reg B
_________________________
Opinions expressed are my own and not necessarily those of my employer. They are not legal advice.

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#1649150 - 01/11/12 01:20 PM Re: Business Credit and Reg B - - CFPB or OCC? Reads Regs
RayLynch Offline
Platinum Poster
RayLynch
Joined: Oct 2003
Posts: 544
Go to 76 FR 79442 (December 21, 2011) and specifically page 79450 which sets forth Section 1002.9 (Notifications). Section 1002.9 discusses the necessary address in adverse notices for consumer and business credit applications.

1002.9(b) gives you until January 1, 2013 to change the address in the notification to the CFPB address:

(b) Form of ECOA notice and statement of specific reasons. (1) ECOA notice. To satisfy the disclosure requirements of paragraph (a)(2) of this section regarding section 701(a) of the Act, the creditor shall provide a notice that is substantially similar to the following: The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant's income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The Federal agency that administers compliance with this law concerning this creditor is [name and address as specified by the appropriate agency or agencies listed in Appendix A of this part]. Until January 1, 2013, a creditor may comply with this paragraph (b)(1) and paragraph (a)(2) of this section by including in the notice the name and address as specified by the appropriate agency in Appendix A to 12 CFR Part 202, as in effect on October 1, 2011.

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