FDIC publishes most frequently violated consumer protection laws by banks in 2021

The most frequently cited violations of consumer protection laws and rules in 2021, as well as other consumer compliance examination observations, are outlined in the latest publication of supervisory highlights issued Thursday by the federal bank deposit insurance agency.

According to the Federal Deposit Insurance Corp.’s (FDIC) Consumer Compliance Supervisory Highlights for 2021, the most frequently cited violations (representing approximately 78% of the total violations cited in 2021) remain the same as 2020, involving: the Truth in Lending Act (TILA), Flood Disaster Protection Act (FDPA), Electronic Fund Transfers Act (EFTA), Truth in Savings Act (TISA), and the Real Estate Settlement Procedures Act (RESPA).

The report notes that FDIC in 2021, initiated 20 formal enforcement actions and 24 informal enforcement actions to address consumer compliance examination findings. During that period, the FDIC issued Civil Money Penalty (CMP) orders against institutions to address violations of the FDPA and Section 5 of the Federal Trade Commission Act (FTC Act), totaling $2.7 million. Voluntary restitution payments to more than 49,000 consumers for violations of various laws and regulations totaled approximately $4.5 million, the agency said.

FDIC Consumer Compliance Supervisory Highlights