Question of the Week

  • QUESTION: The bank has started marketing on social media. The bank wants to market deposit accounts. What must the bank be aware of when marketing on social media?


    Advertising has been identified as having a high potential for UDAAP violations. Social media is no exception. The specific requirements for advertising under Regulation DD (and Regulation Z) do include requirements for electronic media (such as a website). Regulation DD defines advertisement to include any medium, and does provide an exemption for social media from the requirements. UDAAP exam procedures include social media advertisements. The bank must be aware of and address the compliance requirements to ensure that that products are advertised properly and do no mislead or deceive consumers.

    508 compliance should also be considered. Ensure that the bank includes contact information, as applicable, a telephone number and/or website. For social media advertisement, ensure that any disclosures, hyperlinks, etc., provide proper access to disclosures (for example, nothing is obscured by a link or popup), and that terms and conditions stated are in proximity to related items. If the bank is using a third party for social media – ensure that the bank knows what information is collected, it could be a fair lending issues especially if credit is involved.

    Reference: Regulation DD 1030.2; 1030.8; Regulation Z 1026.16; 102.24. CFPB TISA exam procedures October 2012, page 25. CFPB UDAAP Exam Procedures, October 2012. 

Question of the Week Archive

  • QUESTION: Fraudulent transactions appeared on an account and timely notice was given by the customer. The investigation found the PIN was written down and accessible. The bank wants to make the consumer liable for the entire amount. Is this allowed?

  • QUESTION: Is a bank required to pay interest on a dormant or inactive account?

  • QUESTION: There is a discrepancy between the maps the bank uses and the insurance company. Is it the responsibility of the bank to ensure that the proper amount of flood insurance is purchased?

  • QUESTION: A customer pointed out incorrect information on a credit report used for their loan at your bank. The borrower wanted the bank to fix it. If the incorrect information did not come from the bank, does the bank have to correct the information?

  • QUESTION: The Bureau issued an interpretive & procedural rule for HMDA based on the EGRRCP Act, yet Reg C has not been amended. Can a bank follow the issuance and be in compliance, or does a bank have to wait for Reg C to be amended?

  • QUESTION: Is a bank required to continue sending its annual privacy notice as required under Regulation P?

  • QUESTION: In regard to UDAAP, what is meant by "the injury must not be outweighed by countervailing benefits to consumers or to competition"?

  • QUESTION: What is the timing on performing an account review under the Garnishment of Federal Benefit Payments rule?

  • QUESTION: Under the Fair Debt Collection Practices Act, does the term debt collector include a bank employee?

  • QUESTION: Does the bank need to provide an adverse action notice if the consumer does not communicate an intent to proceed?

  • QUESTION: Does the bank have to provide a change in terms notice if the account offers terms that will automatically change when a specific event occurs?

  • QUESTION: An MSB with an account states it is not required to register with FinCEN. How can the bank determine if this is true?

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