Regulatory Report
Regulatory Report
  • The Fed
  • FDIC
  • OCC
  • NCUA
  • CFPB
  • Other
What's up
  • [ June 19, 2026 ] Former OK bank leader earns prohibition, $125k fine for ‘imprudent’ lending that led to millions in losses The Fed
  • [ June 18, 2026 ] Agencies jointly issue proposal for ‘effective’ customer ID program used by permitted stablecoin issuers FDIC
  • [ June 17, 2026 ] Want your filing approved? OCC attempts to clarify how that happens (and how it doesn’t) OCC
  • [ June 18, 2026 ] OCC bars 2 from banking work; terminates 3 previous orders of enforcement OCC
  • [ June 17, 2026 ] GAO: Fed’s COVID-era ‘Main Street’ loan program shows 70% of loans repaid; more Other
HomeFederal financial regulationCFPBExams find communication issues in account freezes, limited oversight in medical payment products, CFPB says

Exams find communication issues in account freezes, limited oversight in medical payment products, CFPB says

July 2, 2024 CFPB 0

Unfair practices in how some banks communicated with consumers about freezes on deposit and prepaid accounts, and limited oversight by financial institutions of medical providers offering payment products, are among concerns recently identified by examiners for the consumer financial protection agency.

The Consumer Financial Protection Bureau (CFPB) also indicated, in its latest issue of Supervisory Highlights, that banks and credit unions have reduced or eliminated fees for their customers and members to attain basic account information – in compliance with the law.

Regarding freezes on accounts, the CFPB said that recent exams have unearthed, for example, that some institutions “failed to affirmatively notify consumers when their accounts were frozen. In other instances, institutions failed to provide clear guidance to affected consumers, and customer service representatives were often inaccessible to those with frozen accounts.”

The bureau noted that banks regularly review deposit and prepaid account activity to identify fraud or other suspicious activity. They sometimes freeze funds as a preventive measure, the agency said. “However, CFPB examiners found unfair practices in how some institutions communicated with consumers about these account freezes,” the CFPB said.

Regarding oversight of medical providers offering payment products, the bureau asserted that its recent exams have found that healthcare providers commonly use sales and marketing materials provided by the financial institutions issuing these payment products. However, the agency said, examiners found a “significant number” of consumer complaints about how dentists and other healthcare providers promoted, offered, and sold medical credit cards to consumers.

“Patients complained about health care providers misrepresenting the specifics of ‘deferred interest’ promotions and that they felt pressured by providers to open a credit card while receiving treatment,” the bureau said. “CFPB examiners will continue to assess financial services companies’ oversight of medical providers and will be monitoring marketing materials and incentives offered to enroll patients.”

In another area, however, the bureau acknowledged that banks and credit unions have lowered or cut out excessive fees for customers seeking basic account information. The agency noted that Section 1034(c) of the Consumer Financial Protection Act (CFPA) prohibits banks and credit unions from creating unreasonable barriers, including large fees, for account information.

“The CFPB issued information requests to select entities regarding their deposit and credit card-related services, and the responses identified some changes in industry practices,” the CFPB said. “Some institutions have eliminated fees for obtaining account information, including charges for printed check images and statements. Others now offer free balance inquiries at third party ATMs.

“The CFPB will continue to gather information about compliance across various financial product types,” the agency said.

CFPB Exams Find Loan Servicing Failures, Illegal Debt Collection Practices, and Issues with Medical Payment Products

Related

Today

  • Former OK bank leader earns prohibition, $125k fine for ‘imprudent’ lending that led to millions in losses

    June 19, 2026 0
    “Imprudent” loans made to the relatives of an Oklahoma bank CEO have led to his prohibition from future bank employment and a fine of $125,000, the Federal Reserve said Thursday. According to the Fed, it has prohibited Thomas Engelbrecht from [...]
  • Agencies jointly issue proposal for ‘effective’ customer ID program used by permitted stablecoin issuers

    June 18, 2026 0
    Establishing and maintaining “an effective” customer identification program (CIP) for permitted payment stablecoin issuers (PPSIs) was proposed Thursday by federal banking and credit union regulators, and the Treasury’s financial crimes enforcement unit. The proposal, issued under the auspices of the [...]
  • Want your filing approved? OCC attempts to clarify how that happens (and how it doesn’t)

    June 17, 2026 0
    A filing is inconsistent with law or regulation if it does not meet the applicable statutory or regulatory criteria for that filing type, the national bank regulator said Wednesday in a bulletin focusing on the agency’s filing decision process. The [...]
  • OCC bars 2 from banking work; terminates 3 previous orders of enforcement

    June 18, 2026 0
    Two banking executives were barred from any future work in federally insured financial institutions in consent prohibition orders announced Thursday by the Office of the Comptroller of the Currency (OCC). The agency’s prohibition orders noted that: Steven Ho, former vice president [...]
  • GAO: Fed’s COVID-era ‘Main Street’ loan program shows 70% of loans repaid; more

    June 17, 2026 0
    An annual review of the Federal Reserve’s Main Street Lending Program — created with other programs to ensure credit availability amid the COVID-19 pandemic — has seen 70% of the 1,830 loans made fully repaid, with 16% generating losses and about [...]
  • Credit union regulator’s Hauptman to receive three briefings at meeting set for June 24

    June 17, 2026 0
    A mid-year budget update is on the agenda for the federal credit union regulator’s one-man board when he gavels in the meeting June 24, at 10 a.m. ET. According to the National Credit Union Administration (NCUA) Kyle Hauptman, chairman of [...]
  • OCC drops language from MDI rules designating what groups qualify as ‘socially, economically disadvantaged’

    June 16, 2026 0
    As there is no specified group of individuals presumed to be socially and economically disadvantaged under the statute creating minority depository institutions (MDIs), the national bank regulator is dropping portions of its rules that outline who those groups are, the [...]
  • UPDATED: Credit union regulator loosens rules on records preservation requirements

    June 15, 2026 0
    Guidance on records preservation for credit unions concerning the length of time credit unions should retain various types of operational records was removed from the federal regulator’s regulations under a final rule adopted Monday. According to the one-man board of [...]
  • FinCEN updates guidance on banks’ USA PATRIOT Act info sharing with others

    June 15, 2026 0
    Updated guidance on how financial institutions are permitted to share information with each other regarding suspected fraud was issued by Treasury’s financial crimes enforcement arm under the USA PATRIOT Act. The Financial Crimes Enforcement Network (FinCEN) on Friday released a [...]

Resources

  • About
  • Get our daily reports
    • Registration
  • Password Reset
  • Reg lookup
  • Profile

Follow @editorregreport

  • The Fed
  • FDIC
  • OCC
  • NCUA
  • CFPB
  • Other

Copyright (c) 2022, RegReport.info; Contact: editor@regreport.info