Office of the Comptroller of Currency

Counterfeit Cashier’s Checks reported at Florida Bank

A bank in Florida has reported some variations of counterfeit cashier’s checks using a correct routing number. The counterfeit checks are being used nationwide posing as online job opportunities and auction scams.

The counterfeit checks may be identified by some of the following traits:

• The checks presented are blue with a black and white logo in the upper-left corner.
• The name “Jake Smith” or “Jim Kirk” appears under the bank logo.
• “CASHIER’S CHECK” is located in the lower-left portion of the check.

 

The Consumer Financial Protection Bureau CFPB

CFPB Fines Experian $3 Million for Deceiving Consumers

The Consumer Financial Protection Bureau (CFPB) took action against Experian for deceiving consumers about the use of credit scores it sold to consumers. Experian claimed the credit scores they advertised and provided to consumers were used by lenders to make credit decisions. However, lenders did not use Experian’s scores for those purposes. The CFPB ordered Experian to be truthful about how its credit scores are used and charged them with a civil penalty of $3 million.

 

The CFPB is proposing changes to Regulation B to help mortgage lenders

CFPB released a proposal to amend Regulation B to allow more flexibility for mortgage lenders with the collection of consumer demographic information. 

Not only would the proposal provide flexibility for individual lenders but it would support the mortgage industry’s consistency with their forms and practices. They believe the proposal will help the industry as it works to adopt new application forms.

Regulation B implements the Equal Credit Opportunity Act (ECOA). This is a federal civil rights law that protects applicants from being discriminated against by lenders. ECOA restricts lenders’ ability to ask certain questions or gather information from consumers. The proposal would amend these requirements to allow mortgage lenders more freedom to collect certain demographic information provided by applicants. 

 

Other Regulatory Bodies

The Federal Trade Commission

FTC Returns Money to Victims of Debt Relief Scheme

The Federal Trade Commission is mailing over 500 checks totaling more than $148,000 to people who lost money to Payday Support Center, a debt relief scam that targeted people with outstanding payday loans. The defendants are banned from promoting or selling debt relief services under a federal court order.

People who lost money will get back an average of $264. Recipients should deposit or cash checks within 60 days. The FTC never requires people to pay money or provide account information to cash refund checks.

 

FINRA

FINRA Receives SEC Approval on Rule Proposal Addressing Financial Exploitation of Seniors

The Securities and Exchange Commission has approved FINRA’s rule proposal about financial exploitation of seniors. FINRA issued Regulatory Notice 17-11 announcing a February 5, 2018 effective date for the proposed rule.

The SEC approved changes that involve two key steps to protect investors. First, firms will be required to gather information regarding the name and contact information for a trusted contact person of a customer’s account. Second, firms must place a temporary hold on a disbursement of funds or securities when they believe there may be a chance of financial exploitation.

The need for the proposal became crucial when calls into FINRA's Securities Helpline for Seniors^® highlighted some of the issues firms are dealing with when it comes to senior investors.