Issued by FDIC
§ 1041.7 Identification of unfair and abusive practice.
The compliance date for this section is August 19, 2019.
It is an unfair and abusive practice for a lender to make attempts to withdraw payment from consumers' accounts in connection with a covered loan after the lender's second consecutive attempts to withdraw payments from the accounts from which the prior attempts were made have failed due to a lack of sufficient funds, unless the lender obtains the consumers' new and specific authorization to make further withdrawals from the accounts.
Section 1041.7—Identification of Unfair and Abusive Practice
1. General. A lender who complies with §1041.8 with regard to a covered loan has not committed the unfair and abusive practice under §1041.7.