Learn how mounting regulatory pressures are impacting how financial service companies deal with data reporting and accuracy.
For more information on how Experian can assist in satisfying some of the key laws and regulations that affect financial institutions, please complete the form below
Experian helps financial institutions address regulations and internal policies with which they must comply. While regulators continue to publish regulations to enhance consumer protection and address safety and soundness, we help financial institutions to not just satisfy these requirements, but to use the implementation of these regulations in an innovative way to be a source of competitive advantage.
Below is a list of some of the key laws and regulations that Experian can assist financial institutions with compliance and innovation.
Basel III and II are global regulatory standards for capital adequacy, stress testing and market liquidity risk agreed upon by the members of the Basel Committee on Banking Supervision. Beginning in 2014, US regulations have instituted an Integrated Capital Framework which includes Basel III, a Standardized and Advanced Approaches rule and the incorporation of these rules into CCAR and DFAST stress testing.
Laws are intended to strengthen U.S. measures to prevent, detect, and prosecute international money laundering and the financing of terrorism. These efforts include a Customer Identification Program (CIP), OFAC and Anti-Money Laundering (AML) regulations.
CCAR - Federal Reserve Board rule to ensure large bank holding
companies account for their financial risks and have sufficient capital to operate
under economic stress.
DFAST – OCC, FDIC and Federal Reserve Board rules to ensure financial institutions ranging from $10B to $50B account for their financial risks and have sufficient capital to operate under economic stress.
The Fair Debt Collections Practices Act (FDCPA) generally prohibits debt collectors
from using abusive, unfair, or deceptive practices to collect debts that are incurred
for personal, family or household purposes. Under the FDCPA, a debt collector is someone
who regularly collects debts owed to others; however many companies who collect their
own debts follow the rules of the FDCPA. The CFPB has assumed enforcement power over
large debt collectors, those over $10 million in annual receipts. The CFPB is now
accepting complaints on debt collectors and has begun an active supervision and enforcement
The CFPB has also recently initiated the process of clarifying debt collection rules for all debt collectors.
Experian can assist you with compliance with the FDCPA and other rules that impact debt collection, while reducing your roll rate with fewer resources.
Under the updated requirements for Customer Due Diligence, covered financial institutions must expand programs, including Customer Identification Programs (CIP), to include Beneficial Owners of Legal Entity customers. The new rule requires financial institutions to collect and verify identity information (name, address, date of birth, Social Security number or passport number for foreign individuals) for each person with at least 25% ownership in the legal entity, and an individual with significant responsibility for managing or controlling the business.
U.S. financial institutions are required to mitigate risk using a variety of processes and technologies, employed in a layered approach. Businesses are required to move beyond simple questions, for example, to a more complex out-of-wallet identity verification procedure that incorporates broad data assets and analytics.
FDIC rule under Dodd-Frank Act detailing deposit insurance assessment for concentrations of leveraged loans, consumer subprime loans, and certain types of mortgage and commercial real estate loans.
Supervisory guidance to ensure sound practices in data and attribute governance, model validation, model development, implementation, use, governance and controls, strategies and operations.
All financial institutions are required to have both written and operational identity theft prevention programs. Establishes reasonable procedures that 1) assist creditors and financial institutions in identifying identity theft at the time of origination and 2) set forth provisions specifically applicable to institutions who receive notice of a customer’s change of address on an account or other red flags on an existing account.
The CFPB’s Regulation V contains important requirements for furnishers of
credit information with respect to the accuracy and integrity of such information
and the resolution of direct disputes, Furthermore, the CFPB published an important
bulletin on September 4, 2013 that outlined its expectations as to the investigation
and review of disputes it receives from CRA’s.
Having a comprehensive methodology for assessing data quality throughout the customer lifecycle is key to satisfying this regulatory requirement while bringing the added advantages of minimizing dispute volume and increasing customer satisfaction. Just as important, is to have the systems and processes in place to resolve disputes in accordance with customer and regulatory expectations.
Requires companies that use a credit report or score in connection with a credit decision to send a notice to a consumer when, based on a credit report or score, the company grants credit on material terms that are not the most favorable terms offered to a substantial proportion of consumers. In most cases, the rule defines “material terms” as the loan’s Annual Percentage Rate.
The TCPA restricts the making of telemarketing calls and the use of automatic telephone dialing systems and artificial or prerecorded voice messages. It also prohibits the use of an "automatic telephone dialing system" to contact "any telephone number assigned to a cellular telephone service" without "express prior consent" from the party being called when the recipient will be charged for the call.
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