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The CFPB yesterday announced it has taken action to permanently ban Student Loan Pro and Judith Noh, its owner, from offering or providing consumer financial products. The CFPB alleges that Student Loan Pro and Noh violated federal law by charging borrowers upfront fees to file paperwork on their behalf to access free debt-relief programs available to consumers with federal student loans. The CFPB’s stipulated judgment, if entered by the court, would also require Noh to take steps to dissolve Student Loan Pro and a related business, FNZA Marketing, LLC, and pay a civil money penalty.

According to the CFPB's press release, Student Loan Pro is a California sole proprietorship formed in 2015 by Noh that telemarketed debt-relief services for consumers with federal student loan debt. The CFPB filed a lawsuit in 2021 alleging that Student Loan Pro, Noh, and Syed Gilani—Student Loan Pro’s manager and owner-in-fact—violated the Telemarketing Sales Rule by requesting and receiving advance fees, initially running as high as $795, for its debt-relief services. The company’s services included filing paperwork on consumers’ behalf to apply for programs that were already available to borrowers for free from the United States Department of Education.

The Federal Trade Commission's Telemarketing Sales Rule (16 C.F.R. part 310) prohibits sellers and telemarketers from requesting or receiving advance fees for any debt-relief service before renegotiating, settling, reducing, or otherwise altering the terms of at least one of a consumer’s debts, and before a consumer has made at least one payment on such altered debt. Student Loan Pro’s advance-fee violations cost approximately 3,300 consumers nearly $3.5 million in advance fees.

• CFPB Complaint
• Proposed stipulated judgment and order

Yesterday, the Federal Reserve Board, CFPB, FDIC, OCC, FinCEN, NCUA and state financial regulators issued a joint press release to announce a joint Statement on Elder Financial Exploitation.

The eleven-page Statement provides supervised institutions with examples of risk management and other practices that may be effective in combating such exploitation.

• FDIC FIL-83-2024
• OCC Bulletin 2024-34

The Federal Reserve Board has announced it has issued a consent Cease and Desist Order to First of Murphysboro Corp., Murphysboro, Illinois (FMC), a registered bank holding company that owns The First Bank and Trust Company of Murphysboro, after a recent inspection of FMC by the Federal Reserve Bank of St. Louis identified deficiencies with respect to the operations of FMC, including FMC's ability to serve as a source of strength to the bank, and with respect to compliance with rules related to affiliate transactions.

The Treasury Department has reported that OFAC has sanctioned five individuals and four entities — including Pullman Global Solutions LLC, a Wyoming-based entity that is owned 50 percent or more by a sanctioned individual — that are associated with or leverage the TGR Group, a sprawling international network of businesses and employees that have facilitated significant sanctions circumvention on behalf of Russian elites.

For the names and identification information of the designated individuals and entities, see yesterday's BankersOnline OFAC Update.

FinCEN has published [89 FR 96708] an invitation to the public to nominate financial institutions, trade groups, and non-Federal regulators or law enforcement agencies for membership in the Bank Secrecy Act Advisory Group (BSAAG). New members will be selected for three-year membership terms.

BSAAG membership is open to financial institutions subject to the BSA, trade groups that represent financial institutions subject to the BSA, and federal and non-federal regulators and law enforcement agencies that are located within the United States. The BSAAG is the means by which the Treasury receives advice on the reporting requirements of the Bank Secrecy Act (BSA) and informs private sector representatives on how the information they provide is used.

Nominations must be emailed to BSAAG@fincen.gov, and received by January 6, 2025.

The FDIC, OCC, and Federal Reserve Board have issued a joint press release to announce their third notice requesting comment to reduce regulatory burden. The Economic Growth and Regulatory Paperwork Reduction Act of 1996 requires the Federal Financial Institutions Examination Council and federal bank regulatory agencies to review their regulations at least once every 10 years to identify outdated or otherwise unnecessary regulatory requirements for their supervised institutions.

To facilitate this review, the agencies divided their regulations into 12 categories and are now soliciting comments on their regulations for three categories: Rules of Procedure, Safety and Soundness, and Securities. The public has 90 days from publication of the notice in the Federal Register to comment on the relevant regulations.

The agencies will request comment on regulations in the remaining categories in 2025, asking the public to identify the regulations they believe are outdated, unnecessary, or unduly burdensome.

The Treasury Department yesterday announced that the U.S. is imposing sanctions on 35 entities and vessels that play a critical role in transporting illicit Iranian petroleum to foreign markets. This action imposes additional costs on Iran’s petroleum sector following Iran’s attack against Israel on October 1, 2024, as well as Iran’s announced nuclear escalations. Petroleum revenues provide the Iranian regime with the resources to fund its nuclear program, develop advanced drones and missiles, and provide ongoing financial and material support for the terrorist activities of its regional proxies.

For the names and identification information of the designated entities and vessels, see yesterday's BankersOnline OFAC Update.

The OCC has issued Bulletin 2024-33 announcing it has issued version 1.1 of its “Unfair or Deceptive Acts or Practices and Unfair, Deceptive, or Abusive Acts or Practices” booklet of the Comptroller’s Handbook. The booklet contains information for examiners regarding supervision of a bank’s practices related to section 5 of the Federal Trade Commission Act, which prohibits banks from engaging in unfair or deceptive acts or practices (UDAP), and sections 1031 and 1036 of the Dodd-Frank Act, which prohibit unfair, deceptive, or abusive acts or practices (UDAAP).

The updated booklet—

• provides further clarity regarding sound risk management practices and guidance to examiners regarding overdraft services.
• incorporates updates from the Consumer Financial Protection Bureau regarding data protection and information security.
• includes an updated version of the “Appendix B: UDAP and UDAAP Risk Indicators.”
• reflects OCC and interagency issuances that have been published or rescinded since June 2020.
• includes other minor updates for general clarity.

The FDIC has released its December 2024 list of banks examined for CRA compliance. This month's list includes 65 institutions whose most recent CRA evaluations have been made public. CRA evaluations are assigned one of four ratings: Outstanding, Satisfactory, Needs to Improve, or Substantial Non-compliance.

The December 2024 list includes 60 banks whose evaluations were rated Satisfactory. Two banks — one in Brentwood, Tennessee, and one in New York, New York — were rated "Needs to Improve.

We congratulate three institutions whose evaluations were rated Outstanding:

• Bank of Wiggins, Wiggins, Mississippi
• Liberty Bank, Middletown, Connecticut
• Waukesha State Bank, Waukesha, Wisconsin

The FBI has posted a Public Service Announcement warning the public that criminals exploit generative artificial intelligence (AI) to commit fraud on a larger scale which increases the credibility of their schemes. The PSA calls attention to criminals' use of AI-generated text, images, audio, and video in furtherance of their schemes. The FBI's message also includes tips for self-protection.

The OCC has released a list of 19 OCC-supervised financial institutions whose Community Reinvestment Act performance evaluations became public during November. The list includes 16 institutions that received evaluation ratings of "Satisfactory," and the following three whom we congratulate for receiving "Outstanding" ratings:

• Evergreen Federal Bank, Grants Pass, Oregon
• FNC Bank, National Association, Brookville, Indiana
• Santander Bank, National Association, Wilmington, Delaware

Yesterday, the Treasury Department reported that OFAC had sanctioned three former Government of Uzbekistan officials who were involved in human trafficking and gender-based violence. All three individuals were designated under the authority of Executive Order 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act and targets perpetrators of serious human rights abuse around the world.

For the names and identification information of those individuals, see yesterday's BankersOnline OFAC Update.

The Consumer Financial Protection Bureau this morning proposed a new rule to rein in data brokers that sell Americans' sensitive personal and financial information. The proposed rule would limit the sale of personal identifiers like Social Security Numbers and phone numbers collected by certain companies and make sure that people’s financial data such as income is only shared for legitimate purposes, like facilitating a mortgage approval, and not sold to scammers targeting those in financial distress. The proposal would make clear that when data brokers sell certain sensitive consumer information they are "consumer reporting agencies" under the Fair Credit Reporting Act (FCRA), requiring them to comply with accuracy requirements, provide consumers access to their information, and maintain safeguards against misuse.

The proposed rule would:

• Treat data brokers just like credit bureaus and background check companies: Companies that sell data about income or financial tier, credit history, credit score, or debt payments would be considered consumer reporting agencies required to comply with the FCRA, regardless of how the information is used.
• Protect consumers' personal identifiers from abuse and misuse: When consumer reporting agencies collect information like names, addresses, or ages for credit reports, any subsequent sale of that information would be covered by the FCRA's protections.
• Require clear consumer consent for data sharing: Under the proposed rule, companies relying on consumers’ consent to obtain or share a consumer’s credit report would need separate, explicit authorization to do so, rather than burying permissions in fine print.

Comments on the proposal will be accepted through March 3, 2025.

• Fact Sheet on the proposed rule
• Director Chopra's remarks on the proposal
• Proposed rule
• Press release
• Publication update: Published at 89 FR 101402 on 12/13/2024

The OCC, Federal Reserve Board, and FDIC have jointly published [89 FR 95786] in today's Federal Register their collective annual report to congressional committees describing differences among the accounting and capital standards used by the agencies for insured depository institutions.

As of September 30, 2024, the agencies have not identified any material differences among the agencies' accounting standards applicable to institutions.

With regard to differences in capital requirements, in 2013 the agencies revised the risk-based and leverage capital rule for institutions (capital rule) which harmonized the agencies' capital rule in a comprehensive manner. Since 2013, the agencies have revised the capital rule on several occasions, further reducing the number of differences in the agencies' capital rule. Today, only a few differences remain, which are statutorily mandated for certain categories of institutions, or which reflect certain technical, generally nonmaterial differences among the agencies' capital rule. No new material differences were identified in the capital standards applicable to institutions in this report compared to the previous report submitted by the agencies.

The FDIC has updated its webpage Questions and Answers Related to the FDIC's Part 328 Final Rule to add several answers to a growing collection of frequently asked questions relating to the updated regulation from stakeholders, including banks, trade associations, tech companies, vendors, and others.

The Office of the Comptroller of the Currency has announced increased assessment rates for national banks and federal savings associations for the 2025 calendar year. The increases are primarily targeted at large banks and other institutions that require increased supervisory resources, according to the OCC.

The OCC increased the rates in the general assessment fee schedule for assets above $40 billion by 16 percent to reflect the increased cost of supervising the largest institutions. The OCC increased all other rates in the general assessment fee schedule by 2.65 percent to account for inflation.

The calendar year 2025 assessment rates will be in effect as of January 1, 2025, and will be reflected in assessments paid on March 31, 2025, and September 30, 2025.

• OCC Bulletin 2024-32, with further details and complete assessment schedule

The NCUA has announced it issued a consent order of prohibition in November against Daniel Garza, a former teller with Alhambra Credit Union, Phoenix, Arizona, after a finding that he performed numerous unauthorized cash withdrawals from Alhambra Credit Union member accounts, resulting in a lost of $14,900, and stole $7,597 from his teller cash drawer.

The FDIC has posted its CRA Examinations Schedules for the first quarter and second quarter of 2025. The schedules can be sorted by location, bank name, and other criteria.

There are 238 evaluations scheduled for the first quarter, and 210 for the second quarter.

The FDIC has released a list of enforcement orders issued in October 2024.

• The Stockgrowers State Bank, Maple Hill, Kansas, was assessed a $5,250 civil money penalty (CMP) for violations of the Flood Disaster Protection Act and National Flood Insurance Act.
• First & Peoples Bank and Trust Company, Russell, Kentucky, paid a $1,500 CMP for engaging in a pattern or practice of committing violations of the National Flood Insurance Act and 12 C.F.R. § 339.7(a), by failing to follow force placement flood insurance procedures for three loans.
• Bank of Frankewing, Frankewing, Tennessee, received a consent order regarding lending-related concerns, management succession, budgeting, capital, and violations noted in a November 2023 Visitation Report.
• John C. Ponte, formerly a loan referral agent for Independence Bank, East Greenwich, Rhode Island, was issued an Order of Prohibition and Order for Restitution of $1 million, for violations of regulations and unsafe and unsound practices in connection with the bank, causing the bank to suffer financial loss and Ponte to receive financial gain.

The Treasury Department has reported that OFAC has sanctioned 21 security and cabinet-level officials aligned with Nicolas Maduro. These individuals are sanctioned under the authority of Executive Order 13692 for being current or former officials of the Government of Venezuela. They have supported and carried out Maduro’s orders to repress civil society in his efforts to fraudulently declare himself the winner of Venezuela’s July 28 presidential election, thus ignoring the will of the overwhelming majority of Venezuelan voters who elected Edmundo Gonzalez Urrutia as their next president.

For the names and identification information of the designated individuals and an unrelated administrative update, see this November 27, 2024, BankersOnline OFAC Update.