updated 03/10/14 05:25 PM
CFPB'S NEW CREDIT SCORE DISCLOSURES
Also, Risk-Based Capital Webinar
The Consumer Financial Protection Bureau (CFPB) recently released a report regarding consumer complaints about credit reporting companies, which shows that 73 percent of credit reporting complaints are about incorrect information on a credit report, while 11 percent are about the dispute investigation process.
This led the CFPB to issue CFPB Bulletin 2014-01, reminding furnishers of their obligation under the Fair Credit Reporting Act (FCRA) to investigate disputed information in a consumer report.
In further response to the complaints about accuracy of information, CFPB Director Richard Cordray sent letters to the nation’s top credit card companies strongly encouraging them to make credit scores and related content “freely and regularly available to their customers on monthly statements or through online access.” The CFPB further states it will consider this a “best practice” in the industry.
The CFPB says several credit card companies are already offering this service to their customers, and suggests that a regularly available credit score may prompt more Americans to review their credit standing and access their free annual credit report.
The California and Nevada Credit Union Leagues are reminding credit unions there is no requirement that credit unions provide their members’ credit scores on credit card statements, or otherwise make them “regularly and freely available” online.
“The CFPB’s attempt to create such a standard by ‘strongly’ encouraging credit card companies to provide the information is very troubling, and a point the Leagues will raise with the agency,” said Sharon Lindeman, vice president of regulatory advocacy for the Leagues.
In addition, the Leagues will adamantly oppose any proposal from the CFPB to amend Regulation Z to require such disclosure of the credit score on credit card statements, and will use the opportunity to point out the operational and compliance burdens not contemplated or addressed by the CFPB’s current “suggestion.”
CUNA’s Free Risk-Based Capital Webinar
The Credit Union National Association (CUNA) is offering a free webinar on the National Credit Union Administration’s (NCUA) risk-based capital proposal from 1-2 p.m. (Pacific) on March 19.
As proposed, the risk-based capital rules could have a devastating effect on credit unions. The Leagues encourage all credit unions to participate in this webinar to learn more about the proposal, its potential impact, and how you can take action.
Speakers will include credit union CEOs who will share their perspectives on the proposal’s impact, as well as CUNA President and CEO Bill Cheney, CUNA Chief Economist Bill Hampel, CUNA General Counsel Eric Richard, and CUNA Deputy General Counsel Mary Dunn.
The webinar is limited to the first 500 CUNA member-registrants; however, it will be archived within 24 hours for member credit union professionals who want to hear it for the first time or listen again.
Click here to register.
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