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Regulatory Updates for December 2023: CFPB Enforcement Actions, State Laws, and a Warning on Discrimination

2 min read
Dec 13, 2023

December is here, and so is another episode of Ncontracts’ Regulatory Brief covering all the major regulatory news, trends, and updates of the past month.

It’s been yet another busy month for the Consumer Financial Protection Bureau (CFPB) as it hands out enforcement actions and eyes further expanding its regulatory oversight powers. Meanwhile, the agencies are doling out guidance and final rules. Read on for a brief rundown, or for a deep dive, watch the video below.

For even more information, including plain-English explanations of state and federal regulations and implementation guides, log into our Ncomply compliance management solution.


CFPB udpates

CFPB fines Citi $26 million for lending discrimination

The CFPB ordered Citi to pay $25.9 million in fines and redress for intentionally discriminating against Armenian American credit card applicants.

The CFPB found Citi was scrutinizing, negatively assessing, and often denying credit card applications of individuals with Armenian-sounding last names because of concerns about fraud. The bank did not have a legitimate, nondiscriminatory explanation for denying credit and lied to applicants about why they were denied. Employees that didn’t identify and deny such applications faced corrective action. The CFPB says Citi must develop a compliance management system (CMS) to ensure compliance with the Equal Credit Opportunity Act (ECOA) and Reg B.

CFPB warning: Don’t discriminate illegally based on immigration status

The enforcement action against Citi came right after the CFPB and Department of Justice issued a joint statement warning financial institutions may not use immigration status to illegally discriminate against credit applicants. The CFPB also issued guidance related to AI and adverse action notices and how treating applicants differently via an automated underwriting system can lead to discrimination based on prohibited characteristics.

The CFPB also released its Language Access Plan, which reaffirms the CFPB's commitment to providing tools, programs, and services to limited English Proficiency consumers. It also outlines efforts to support the use of these resources, such as the Language Access Task Force and internal translation and audit processes. 

CFPB fines BofA $12 million for false HMDA reporting

After a year marked by millions in civil money penalties for everything from junk fees and withholding credit card awards to opening fake accounts, the CFPB ordered Bank of America to pay an additional $12 million for reporting false HMDA data. (We’ve got a blog on it here.)

CFPB wants to supervise nonbank payment providers

The CFPB announced a proposed rule to regulate large nonbank firms that provide digital payment services, including P2P payments, mobile wallets, and other payment apps.

CFPB reports on state community reinvestment laws

The CFPB provided a new analysis of seven state Community Reinvestment Act laws for the effects on the credit needs of local communities, including findings for enforcement mechanisms and examinations.

New York updates state cybersecurity regulations

New York state already had some of the strictest state cybersecurity regulations in the U.S. Now they are even more stringent after new amendments mandating new controls, more regular risk assessments, and updated notification requirements. Different requirements have different implementation dates, so read the final rule or check Ncomply.

Bulletins & Final Rules

  • The NCUA approved its Charitable Donation Accounts final rule, which now allows federal credit unions to donate to war veterans’ organizations.
  • The OCC announced the publication of revised interagency examination procedures by the OCC, FDIC, and NCUA to reflect amendments to the Telephone Consumer Protection Act.
  • The OCC issued a bulletin providing guidance on safety and soundness considerations to weigh commercial loans to companies referred to as "venture loans" and levels of scrutiny by OCC examiners for these loan commitments. 


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