A Few Quick Thoughts to Start Your Credit Union Day

February 9, 2021 at 9:56 am Leave a comment

CitiBank Settles CARD Act Violation 

My takeaway from the Tampa Bay Buccaneers destruction of the Kansas City Chiefs is that, for all of life’s complexities, we should never lose sight of the basics. With that as my big thought of the day, I want to bring your attention to a recent settlement reached between CitiBank and a group of states for violating the lookback provisions of the CARD Act. As you erstwhile veterans of compliance may recall, the CARD Act was the first major piece of legislation passed by Congress as it scrambled to punish banks as the effects of the mortgage meltdown were coming into focus.

Under the CARD Act, if a creditor increases the annual percentage rate applicable to a credit card account based on factors including the credit risk of the card holder, among others, the creditor should review whether such factors have changed at least every six months (15 U.S.C. section 1665c). In 2018, the CFPB reached a settlement with the bank for misapplying its lookback factors. The announcement of the state settlement resolves similar claims brought against the bank by attorneys general, but the bank refused to concede that it had violated state-level consumer protection laws. My takeaway? Given the complexities of Regulation Z, periodically reviewing your lookback procedures is something that should be on your to-do list if it isn’t already.

Is New York the Center of the Political Universe?

No. But it promises to be one of the most highly contested battlegrounds for 2022 as Republicans and Democrats fight for control of the House of Representatives. Yesterday, Democrat Anthony Brindisi conceded defeat, bringing an end to one of the closest congressional races in the state’s history. Incumbent Brindisi was defeated by Claudia Tenney, who previously lost the seat to Brindisi during the 2018 cycle. Tenney is a good friend to many of our credit unions, and she is certainly aware of the key issues having previously served on the House Financial Services Committee. Taking a look at the big picture, with Democrats in charge of both the Assembly and the State Senate, the House of Representatives within striking distance for Republicans, and New York consistently having multiple competitive congressional elections, get ready to see an awful lot of campaign ads in the run-up to 2022.

Entry filed under: Legal Watch, New York State, Political, Regulatory. Tags: , , , , .

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Authored By:

Henry Meier, Esq., Senior Vice President, General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association. In addition, although Henry strives to give his readers useful and accurate information on a broad range of subjects, many of which involve legal disputes, his views are not a substitute for legal advise from retained counsel.

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