CRA Help From FTC

That's right. Even though the Federal Trade Commission is not involved with CRA, they produce a large number of consumer education pieces that banks can use for consumer education and score high on the service test.

FTC Facts for Consumers, "Pretexting: Your Personal Information Revealed," tells people how to avoid giving their identity away to a pretext caller. It includes an explanation of techniques that pretext callers use, advice on steps consumers should take to protect themselves, and how they can get help if something does happen.

The FTC Consumer Alert, "Identity Crisis?What To Do If Your Identity Is Stolen" also gives consumers guidance on how to stop the ongoing use of their information and how to take control again. These two information sheets are free for downloading over the Internet. They deal with topics that are of high concern to consumers. Your lobby and CSR desks provide an excellent distribution point.

And if you want to drum up some new customers, try taking them away from the payday lenders. The FTC Consumer Alert, "Payday Loans = Costly Cash" explains how payday loans really work and what they really cost. Use this Alert as a method of explaining why these consumers should do their borrowing (and saving) with banks. You should get extra points with consumers and your regulators for being helpful and informative.

Another useful Facts for Consumers is "High-Rate, High-Fee Loans." This brochure explains high-cost loans (also known as Section 32 mortgages because of the paragraph number in Regulation Z) and tells consumers what disclosures they should be getting from their lender.

Particularly in the context of concerns about predatory lending, these are brochures that most if not all of your customers should read. Make them available and take points for it under CRA. These brochures are all available on FTC's website, www.ftc.gov.

Copyright © 2001 Compliance Action. Originally appeared in Compliance Action, Vol. 6, No. 2, 2/01