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CFPB Updates Rules for Military

CFPB Updates Rules for Military Featured

The Consumer Financial Protection Bureau issued the procedures its examiners will use in identifying consumer harm and risks related to the Military Lending Act rule, which was updated in July 2015.The exam procedures being released by the bureau provide guidance to industry on what the CFPB will be looking for during reviews covering the amended regulation.Early examinations will evaluate financial institutions’ compliance management systems and overall efforts to follow the rule’s requirements. Specifically, examiners will consider an institution’s implementation plan, including actions taken to update policies, procedures, and processes; its training of appropriate staff; and its handling of early implementation challenges.The bureau also expects institutions to ensure service members and other eligible consumers are receiving the consumer protections afforded by the Military Lending Act. Risks to consumers resulting from Military Lending Act violations are significant, and the CFPB will exercise its enforcement authority in appropriate cases of substantial consumer harm.For most forms of credit subject to the updated Military Lending Act rule, creditors are required to comply with the amended regulation immediately. Credit card issuers have an additional year.The revised Military Lending Act exam procedures are based on the approved Federal Financial Institutions Examination Council procedures.

Read 4016 times Last modified on Tuesday, 04 October 2016 17:14
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