Website Compliance

Credit Union Website Compliance
Presented By
Laws & Regulations
• Interagency Guidance on Electronic Financial Services
and Consumer Compliance
• Interagency Statement on Retail On-line PC Banking
• NCUA Regulations
– 12 CFR Part 740: Accuracy of Advertising and Notice of
Insured Status
– 12 CFR Part 741: Requirements for Insurance
– 12 CFR Part 716: Privacy of Consumer Financial
Information & Appendix
– 12 CFR Part 748: Security Program, Report of Crime and
Catastrophic Act, and Bank Secrecy Act Compliance
– 12 CFR Part 721: Incidental Powers
Laws & Regulations
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Equal credit opportunity (Regulation B)
Home Mortgage Disclosure Act (Regulation C)
Electronic funds transfer (Regulation E)
Consumer Leasing Act (Regulation M)
Truth in lending (Regulation Z)
Expedited funds availability (Regulation CC)
Laws & Regulations
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Truth in savings (Regulation DD)
Fair credit reporting (FACTA)
Nondiscrimination Requirements (Fair Housing Act)
Real estate settlement and procedures (RESPA)
Child On-line Privacy and Protection Act (COPPA)
FFIEC Guidance
• Interagency Guidance on Electronic Financial
Services
• Consumer Compliance and Interagency Statement on
Retail On-line PC Banking
• Institutions with an Internet presence must implement a
monitoring system to continually review the content and
operation of the online programs
• Prevent inadvertent or unauthorized changes that may
affect compliance with regulations
NCUA Insurance Disclosures
• NCUA-12 CFR Part 740
• The home page and Web pages that advertise or describe
insured deposit products must display the official NCUA
sign and insurance statement
• The statement must appear with the banner
NCUA Insurance Disclosures
• NCUA-12 CFR Part 740
• The home page and Web pages that advertise or describe
insured deposit products must display the official NCUA
sign and insurance statement
• The statement must appear with the banner
Fair Housing Act
• 12 CFR Part 701.31
– The Equal Housing Lender required notice must
appear with or be linked to the Equal Housing
Logo
Truth in Savings (Reg DD)
• When rates are stated as an “Annual Percentage Yield”:
– If the abbreviation “APY” is used, that the term Annual
Percentage Yield is stated at least once on the same page.
– If the page states the term “interest rate” in conjunction with the
APY, is it not more prominent than APY.
– APYs and Interest Rates must be rounded to the nearest onehundredth of one percentage point and expressed to two decimal
points.
– If the pages advertise tiered rate accounts and states an annual
percentage yield it must also state all of the APYs for all tiers as
well as the corresponding minimum balances required.
– If stepped rate accounts are advertised, and an interest rate is
given, all interest rates and APYs, and the time period they are in
effect must also be stated.
Truth in Savings (Reg DD)
• If the page states APY, it must also clearly and
conspicuously disclose:
– Variable-rate notice if applicable (statement that the rate
may change after the account opened)
– Time APY is offered (or is accurate as of a specific date).
– Minimum balance required to obtain the APY.
– Minimum opening deposit required.
– A statement that fees could reduce earnings on the account
(applies only to maintenance or activity fees).
Truth in Savings (Reg DD)
• If the page advertises a time deposit (CD) and states
an APY, the pages must also clearly and
conspicuously disclose:
– Any time requirements (i.e., state the term)
– Disclose the early withdrawal penalties
Truth in Savings (Reg DD)
• If a bonus is stated, the page must also state the
following information:
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“Annual Percentage Yield”, using that term
Time requirements to collect the bonus
Minimum balance required to obtain the bonus
Minimum balance required to open the account (if greater
than the minimum balance necessary to obtain the bonus)
– When will the bonus be provided
Truth in Savings (Reg DD)
• For IRA Advertising, the web page musts adhere to
the following:
– The page must refrain from references to “tax-free” or
“tax-exempt”
– The page must refrain from claims such as “You can be a
millionaire at retirement”
Privacy Notice
• 12 CFR Part 716
– The privacy notice must be located on, or linked to the
home page
– Notice must be clear, conspicuous, reasonably
understandable
– Designed to call attention to the nature and significance of
the information contained in the notice
– Must accurately reflect the Credit Union’s practices
Equal Credit Opportunity Act (Reg B)
• If on-line credit applications are accepted by the credit
union the application must refrain from the following:
– Information about the member’s spouse, unless the spouse will
use or is contractually liable on the account or the applicant
relies on the spouses income.
– Information about the member’s marital status when applying
for unsecured credit; when applying for secured credit the
application may use only the terms married, unmarried or
separated.
– Information about the member’s sex, race, color, religion and
national origin.
– Information about child rearing or child bearing such as birth
control practices, intentions or capability to bear children
Home Mortgage Disclosure Act (Reg C)
• Credit unions originating first-lien home mortgages
on-line must post a notice that tells consumers how to
request the HMDA Disclosure Statement
Consumer Leasing Act (Reg M)
• Advertising for consumer leasing products must
include the specific terms of the lease and avoid using
term such as “annual percentage rate” or “annual
lease rate” or other equivalent terms
Electronic Funds Transfer Act (Reg E)
• Websites offering any type of electronic funds
transfer must include an EFT disclosure statement.
The disclosure must include the following:
– Liability of the member
– Telephone number and address of the office to be notified in
the case of an unauthorized electronic funds transfer
– Definition of “Business Days”
– Types of transfers and limitations
– Fees
Electronic Funds Transfer Act (Reg E)
• Websites offering any type of electronic funds
transfer must include an EFT disclosure statement.
The disclosure must include the following:
– Summary of the member’s right to receipts and periodic
statements
– Stop payment rights
– Liability of the credit union
– Circumstances in which the credit union may provide
information about the member’s account to third parties
– Error resolution
– ATM fees
Truth in Lending Act (Reg Z)
• 12 CFR Part 226
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Consumer Loan Advertising
Closed-End Consumer Loans
Open End Credit Cards
Housing Loan Advertising
Open-End Home Equity Lines of Credit
Truth in Lending Act (Reg Z)
• The page(s) must set forth the following in a clear
and conspicuous manner:
– Any minimum, fixed, transaction, activity, or similar charge
that could be imposed.
– Any membership or participation fee that could be
imposed.
– Loan rates must be expressed as an “Annual Percentage
Rate” or “APR”.
– If applicable, that the APR is variable.
– If the page advertises variable-rate consumer credit, it
must disclose that the interest rate may be increased after
consummation.
Truth in Lending Act (Reg Z)
• The page(s) must set forth the following in a clear
and conspicuous manner:
– Consumer loan pages must disclose the amount or
percentage of the down payment.
– Consumer loan pages must disclose the APR, and if the
rate may be increased after consummation, that fact.
– Consumer loan pages must avoid pictures of or
characterizations that might indicate a prohibited
preference for a particular segment of the population.
– Consumer loan pages must include any specific term of
credit required to be disclosed affirmatively or negatively.
Truth in Lending Act (Reg Z)
• The page(s) must set forth the following in a clear
and conspicuous manner:
– Consumer loan pages must include any amount or
percentage of any loan fee or estimates of other fees.
– Consumer loan pages must state an Annual percentage
rate.
– Consumer loan pages must include any Maximum APR that
may be imposed.
Truth in Lending Act (Reg Z)
• If the Web site advertises a discounted initial annual
percentage rate it must also include:
– The period of time such rate will be in effect with equal
prominence to the initial rate and a reasonable current
APR that will be in effect using the index and margin.
– If the page contains a statement about any minimum
monthly payments, it must also state, if applicable, that a
balloon payment may result.
Truth in Lending Act (Reg Z)
• If the Web site advertises a discounted initial annual
percentage rate it must also include:
– If the page refers to any deductibility of interest for tax
purposes it must contain a statement such as “consult a tax
adviser regarding the deductibility of interest”.
– Pages must refrain from using the phrase “free money” or
other similar misleading term.
Expedited Funds Availability Act (Reg CC)
• Reg CC requires that if deposit accounts are opened
and/or advertised on-line that the credit union’s fund
availability policy is available
Non-Deposit Investment Disclosure
• Page (s) advertising non-deposit investments must be
appropriately segregated from where retail deposits
are solicited
– To avoid member confusion, third party brokers should not
offer investment products with a product name that is
intentionally similar to the federal credit union’s name.
Non-Deposit Investment Disclosure
• Page (s) advertising non-deposit investments must
disclose the following displayed in bold face type, in
a conspicuous manner:
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Not federally-insured;
Not obligations of the credit union;
Not guaranteed by the credit union;
Involve investment risk
Child On-Line Privacy and Protection
Act (COPPA)
• All pages and/or links designed for children (aged 13
years and under) must have a statement explaining
their safeguards for protecting the privacy of
information they collect. This statement must include
the following:
– Types of personal information collected from children and
the procedures used for collecting the information;
– How the credit union uses the personal information;
– Whether the credit union discloses the information to third
parties;
Child On-Line Privacy and Protection
Act (COPPA)
• All pages and/or links designed for children (aged 13
years and under) must have a statement explaining
their safeguards for protecting the privacy of
information they collect. This statement must include
the following:
– Notification that the parent has the option to agree to the
collection and use of the child’s information without
consenting to its disclosure to third parties
– Notification that the credit union may not require a child to
disclose more information than is reasonably necessary to
participate in an activity as a condition of participation
Child On-Line Privacy and Protection
Act (COPPA)
• All pages and/or links designed for children (aged 13
years and under) must have a statement explaining
their safeguards for protecting the privacy of
information they collect. This statement must include
the following:
– Notification that the parent can review the child’s personal
information, ask to have it deleted, and refuse to allow any
further collection or use of the child’s information and state
the procedures for the parents to follow.
– Notice to parents must contain the same information
included on the website.
Child On-Line Privacy and Protection
Act (COPPA)
• All pages and/or links designed for children (aged 13
years and under) must have a statement explaining
their safeguards for protecting the privacy of
information they collect. This statement must include
the following:
– The credit union must notify a parent it wishes to collect
personal information from a child.
– The notice must also state that the parent’s consent for the
collection, use and disclosure of the information and how
the parent can provide consent.
– The credit union must obtain verifiable consent
Website Compliance Checklist
Website Compliance Checklist
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