Product Updates November 2016 is providing you with these product updates as a courtesy to all of our clients. If you have any questions, please contact us.

Revised Policy Templates

Military Lending Act Policy Template

The update to this product is in response to the interagency guidance entitled “Revised Interagency Military Lending Act Examination Procedures” dated 09/29/16 issued by the Task Force on Consumer Compliance of the Federal Financial Institutions Examination Council.  The Military Lending Act (MLA) and its implementing regulation contain limitations on and requirements for certain types of consumer credit extended to active duty service members and their spouses, children, and other dependents.  These revised examination procedures supersede the interagency MLA examination procedures.

The update to these products is in response to the CFPB’s Final Rule entitled “Prepaid Accounts Under the Electronic Funds Transfer Act (Regulation E) and Truth In Lending Act (Regulation Z)” dated 10/05/16 that create comprehensive consumer protections for prepaid accounts under Regulation E, which implements the Electronic Fund Transfer Act; Regulation Z, which implements the Truth in Lending Act; and the official interpretations to those regulations.  The final rule modifies general Regulation E requirements to create tailored provisions governing disclosures, limited liability and error resolution, and periodic statements, and adds new requirements regarding the posting of account agreements.   Additionally, the final rule regulates overdraft credit features that may be offered in conjunction with prepaid accounts.  Subject to certain exceptions, such credit features will be covered under Regulation Z where the credit feature is offered by the prepaid account issuer, its affiliate, or its business partner and credit can be accessed in the course of a transaction conducted with a prepaid card.  The final rule is effective 10/01/17.

In addition, the Regulation E Policy Template was updated in response to the CFPB’s Final Rule entitled “Final Rule: Correcting Amendments” dated 10/12/16 that makes certain clerical and non-substantive corrections to errors it has identified in Regulation E, which implements the Electronic Fund Transfer Act.  The final rule is effective 11/14/16.

The update to these products is in response to the publication in the Federal Register at 81 FR 72160 of the CFPB’s “Consumer Financial Protection Bureau Expands Foreclosure Protections” rule dated 08/04/16 that finalized new measures to ensure that homeowners and struggling borrowers are treated fairly by mortgage servicers.  The policy templates have been updated to reflect the actual effective dates of 12 months from publication (October 19, 2017) and 18 months from publication (April 19, 2018), respectively.