Federal Trade Commission Act (FTC Act) The Federal Trade Commission Act (FTC Act) declares that unjust or misleading trade techniques are unlawful.
State nonmember banks and their institution-affiliated events is supposed to be cited for violations of area 5 regarding the FTC Act plus the FDIC will require action that is appropriate to its authority under area 8 of this Federal Deposit Insurance Act whenever unjust or deceptive trade techniques are found. Examiners should concentrate attention on marketing programs for payday advances, and additionally be alert for possibly abusive collection techniques. Of particular concern may be the practice of threatening, and perhaps pursuing, unlawful check that is bad, regardless of the payment of offsetting costs by the customer additionally the loan provider’s knowledge at that time the check had been accepted that there have been inadequate funds to pay for it. If proof of unfair or misleading trade methods is discovered, examiners should check with the local workplace while the area should talk to Washington.
Where entities except that banking institutions take part in unjust or misleading trade methods, the FDIC will coordinate the Federal Trade Commission to its response. (make reference to FIL-57-2002, dated May 30, 2002, for more information.)
Privacy of customer Financial Information/Part 332 Payday lending arrangements are susceptible to the exact same information sharing limitations and demands as virtually any sort of monetary goods and services given by FDIC-supervised organizations to customers. The financial institution should guarantee individuals are properly supplied with a duplicate associated with bank’s initial, revised, and notices that are annual as relevant.