The two most common violations of consumer compliance supervision in 2024 were those related to truth-in-lending and mandatory flood insurance – pretty much the same results reported in 2023 — according to an annual report issued Thursday by the federal bank deposit insurance agency.
The Federal Deposit Insurance Corp. (FDIC) said there were 1,275 violations of consumer protection statutes and regulations in 2024. The top five most frequently cited violations accounted for 929 violations (73%) of the total violations cited in 2024.
The FDIC said there were 470 violations of the Truth in Lending Act (TILA) and its implementing regulation, Regulation Z (or 36.8%), and 143 violations of the Flood Disaster Protection Act (FDPA) and its implementing regulation, 12 CFR Part 339 (for 11.2%).
Rounding out the top five were violations of:
- The Truth in Savings Act (TISA) and its implementing regulation, Regulation DD, with 129 violations (10.1%);
- The Electronic Fund Transfer Act (EFTA) and its implementing regulation, Regulation E with 122 violations (9.5%);
- Violations of the Home Mortgage Disclosure Act (HMDA) and its implementing regulation, Regulation C accounted for 65 abuses (5%).
The HMDA violations are significant, the agency indicated, as they supplanted last year’s anchor to the top five, violations of section 5 of the Federal Trade Commission (FTC) Act.
“As of December 31, 2024, 97% of all FDIC-supervised institutions were rated satisfactory or better for consumer compliance (i.e., ratings of ‘1’ or ‘2’), and 97% were rated ‘Outstanding’ or ‘Satisfactory’ for the Community Reinvestment Act (CRA),” the FDIC said.
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