Consumer Lending Compliance

Laws and Regulations

Key laws and regulations that pertain to FDIC-supervised institutions; note that other laws and regulations also may apply.

• Truth in Lending Act
  • Part 1026 — Truth in Lending (Regulation Z) (ecfr.gov) provides access to the Consumer Financial Protection Bureau’s (CFPB) Regulation Z — Truth in Lending
  • Section 303.248 — Truth in Lending Act (ecfr.gov) provides regulatory information regarding requests for relief from reimbursement pursuant to the TILA
• Credit Cards
  • Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) provides the text version of the CARD Act issued by the Federal Trade Commission (FTC)
• Small Dollar Lending
  • Final Rule - Payday, Vehicle Title, and Certain High-Cost Installment Loans grants access to the CFPB website and outlines consumer protections for certain consumer credit products and provides related interpretations
• Fair Debt Collection Practices Act
  • Part 1006 — Fair Debt Collection Practices Act (Regulation F) (ecfr.gov) provides access to the CFPB’s Regulation F — Fair Debt Collection Practices Act
  • Fair Debt Collection Practices Act's purpose is to eliminate abusive debt collection practices by debt collectors, to insure that those debt collectors who refrain from using abusive debt collection practices are not competitively disadvantaged, and to promote consistent State action to protect consumers against debt collection abuses.
  • Final Rule - Fair Debt Collection Practices Act (consumerfinance.gov) clarifies prohibitions on harassment and abuse, false or misleading representations, and unfair practices by debt collectors when collecting consumer debt.
• Servicemembers Civil Relief Act
  • Servicemembers Civil Relief Act establishes financial and legal protections for active-duty service members, including National Guard and reserve members, and their families
• Military Lending Act
  • Part 232 — Limitations on Terms of Consumer Credit Extended to Service Members and Dependents of 2015 (govinfo.gov) establishes the final rule for limitations on terms of consumer credit extended to service members and dependents
  • Part 232 — Military Lending Act Limitations on Terms of Consumer Credit Extended to Service Members and Dependents Interpretive Rule of 2016 (govinfo.gov) provides guidance on certain questions the Department of Defense (DoD) received regarding compliance with the final rule
  • Part 232 — Military Lending Act Limitations on Terms of Consumer Credit Extended to Service Members and Dependents Interpretive Rule Amendment of 2017 (govinfo.gov) provides further guidance to the industry and the public on the DoD’s view of its existing regulation
  • Part 232 — Military Lending Act Limitations on Terms of Consumer Credit Extended to Service Members and Dependents Interpretive Rule Amendment of 2020 (federalregister.gov) provides further guidance to the industry and the public on the DoD's view of its existing regulation

Supervisory Resources

Frequently asked questions, advisories, statements of policy, and other information issued by the FDIC alone, or on an interagency basis, provided to address consumer protection issues.

• Truth in Lending Act
  • Section V. Lending — TILA of the FDIC’s Consumer Compliance Examination Manual provides an introduction to the TILA and outlines regulatory requirements as well as related examination procedures
  • Section V. Lending — TIL Restitution of the FDIC’s Consumer Compliance Examination Manual provides information that relates to the identification of TILA violations subject to restitution, restitution calculations, and the determination of appropriate correction action
  • Administrative Enforcement of the Truth in Lending Act — Restitution is a joint statement of policy which summarizes the restitution provisions of the TILA and explains corrective actions the financial regulatory agencies will generally intend to take in those situations in which the TILA gives the agencies the authority to take equitable remedial action
  • Questions and Answers address the Joint Statement of Policy for Administrative Enforcement of the TILA — Restitution issued by the FFIEC on July 11, 1980, and revised July 1998
• Small Dollar Lending
  • Interagency Lending Principles for Offering Responsible Small-Dollar Loans encourages financial institutions to offer responsible small-dollar loans
  • Guidelines for Payday Lending (Revised November 2015) provides information about payday lending and supplements and clarifies previously issued guidance about such programs, including the July 2003 Guidelines for Payday Lending
  • Responsible Small-Dollar Lending to Consumers and Small Businesses in Response to COVID-19 provides the joint agency statement that encourages financial institutions to offer small-dollar loans to consumers and small businesses
• Student Lending
  • Voluntary Private Education Loan Rehabilitation Programs is an advisory to make financial institutions aware of an amendment to Section 623 of the Fair Credit Reporting Act which gives consumers the opportunity to rehabilitate a private education loan with a previously reported default
  • Guidance on Private Student Loans With Graduated Repayment Terms at Origination provides financial institutions with principles applicable to private student loans that have graduated repayment terms
  • Banking Agencies Encourage Financial Institutions to Work with Student Loan Borrowers Experiencing Financial Difficulties is an advisory encouraging financial institutions to work constructively with private student loan borrowers experiencing financial difficulties using prudent workout arrangements that are consistent with safe-and-sound lending practices
• Fair Debt Collection Practices Act
  • Section VII. Unfair and Deceptive Practices — FDCPA of the FDIC’s Consumer Compliance Examination Manual provides an introduction to the FDCPA and outlines regulatory requirements as well as related examination procedures
  • Debt Collection FAQs summarize frequently asked questions and answers, provided by the FTC, regarding debt collection
• Servicemembers Civil Relief Act
  • Section V. Lending — Servicemembers Civil Relief Act of the FDIC’s Consumer Compliance Examination Manual provides an introduction to the SCRA and outlines regulatory requirements as well as related examination procedures
  • Interagency Guidance on Mortgage Servicing Practices Concerning Military Homeowners with Permanent Change of Station Orders provides guidance that addresses mortgage servicer practices that may pose risks to homeowners who are serving in the military
• Military Lending Act
  • Section V. Lending — Military Lending Act of the FDIC’s Consumer Compliance Examination Manual provides an introduction to the MLA and outlines regulatory requirements as well as related examination procedures
  • Section V. Lending — Talent Amendment of the FDIC’s Consumer Compliance Examination Manual provides an introduction to the Talent Amendment and outlines regulatory requirements as well as related examination procedures
• Interagency Guidance Regarding Unfair or Deceptive Credit Practices provides clarification regarding certain consumer credit practices for banks, savings associations, and federal credit unions
• Interagency Statement on Meeting the Needs of Creditworthy Borrowers provides information on several programs designed to promote financial stability and to mitigate procyclical effects of market conditions
• FDIC's Supervisory Policy on Predatory Lending describes certain characteristics of predatory lending and reaffirms that such activities undermine individual, family, and community economic well-being
• Interagency Expanded Examination Guidance for Subprime Lending Programs is intended to strengthen the examination and supervision of institutions with subprime lending programs that equal or exceed 25 percent of an institution’s Tier 1 regulatory capital
• Interagency Guidance on Subprime Lending — Consumer Protection provides guidance for institutions that originate or purchase subprime loans and the consumer protection risks associated with subprime lending
• Risks Associated with Subprime Lending outlines some general controls to effectively manage the risks associated with subprime lending

Other Resources

Supplemental information related to consumer protection issues.

• Truth in Lending Act
  • Truth in Lending Threshold Adjustments provides access to the annual TILA threshold adjustments for exempt consumer credit transactions
  • Rural and Underserved Counties List provides guidance to the entities that do business in rural or underserved counties and are exempt from certain regulatory requirements of the TILA
• Credit Cards
  • Calculating Adjustments to the Safe Harbor Limits on Credit Card Issuer Fees provides access to instructions regarding the calculation adjustments to the safe harbor limits on credit card issuer fees
  • Credit Card Agreements and Surveys allows users to explore databases about credit cards, including general credit card agreements and college credit card marketing agreements, and view survey data regarding the Credit CARD Act on the CFPB website
  • Credit Card Agreements Submission Instructions outlines instructions for credit card issuers to submit their currently-offered credit card agreements quarterly to the CFPB, to be posted on the CFPB’s website
• Small Dollar Lending
  • CFPB Payday Lending Rule Small Entity Compliance Guide focuses on the payment provisions of the Payday Lending Rule and summarizes record retention compliance program requirements as they relate to the payment provisions
• Fair Debt Collection Practices Act
  • Staff Commentary on the Fair Debt Collection Practices Act provides the FTC’s interpretations of the FDCPA which is intended to clarify the staff interpretations of the statute
  • Limits of Debt Collection Tactics includes an overview, provided by the CFPB, of the FDCPA and restrictions on communications by debt collectors when collecting a debt
• Servicemembers Civil Relief Act
  • The Servicemembers Civil Relief Act provides additional information from the Department of Justice on the provisions set forth by the SCRA
  • The Military Lending Act website (mla.dmdc.osd.mil) enables a user to verify whether an individual or their military sponsor is currently servicing on active duty in the U.S. military.