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DIVISION OF CONSUMER AND
COMMUNITY AFFAIRS

CA 14-5
August 22, 2014
TO THE OFFICERS AND MANAGERS IN CHARGE OF CONSUMER AFFAIRS
SECTIONS AND STATE MEMBER BANKS:
SUBJECT: Interagency Guidance Regarding Unfair or Deceptive Credit Practices
Applicability to Community Banking Organizations: This guidance applies to all state
member banks, including those with $10 billion or less in consolidated assets.
The Federal Reserve Board (Board), the Consumer Financial Protection Bureau, the
Federal Deposit Insurance Corporation, the National Credit Union Administration (NCUA), and
the Office of the Comptroller of the Currency (OCC) (collectively, the “Agencies”) are issuing
the attached interagency guidance regarding certain consumer credit practices.
Prior to the Dodd–Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank
Act), several rules prohibited banks, savings associations, and Federal credit unions from
engaging in certain credit practices. The Dodd–Frank Act repealed the rulemaking authority for
these credit practices rules and, consequently, the Board, the OCC, and the NCUA are repealing
those former rules. 1 This guidance states the Agencies’ view that the unfair or deceptive acts or
practices described in these former credit practices rules, including those in the Board’s former
Regulation AA, could violate the prohibition against unfair or deceptive acts or practices in
section 5 of the Federal Trade Commission Act (“FTC Act”) and Title X of the Dodd-Frank Act,
even in the absence of a specific regulation governing the conduct.
The Board notes that the 2004 guidance, “Unfair or Deceptive Acts or Practices by StateChartered Banks,” which was transmitted with CA Letter 04-2, remains in effect. That guidance
outlines the standards that are considered in determining whether specific acts or practices by
state member banks are unfair or deceptive under the FTC Act.
Institutions and supervisory staff may reference the attachments to this CA letter in order
to help determine whether a certain credit practice could be unfair or deceptive.
If you have any questions, please contact Mandie Aubrey, Counsel, or Maureen Yap,
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This guidance is being issued concurrently with a proposed repeal of the Board’s Regulation AA, which contains
the former credit practices rules applicable to banks. The former credit practices rule applicable to savings
associations was effectively repealed by the OCC as of July 21, 2011. The NCUA plans to repeal its version of the
credit practices rule, which was applicable to Federal credit unions. See footnote 9 of the guidance.

Special Counsel/Manager, at (202) 452-3667.
Sincerely,

Eric S. Belsky
Director

Attachments:
• Interagency Guidance Regarding Unfair or Deceptive Credit Practices
• Former Regulation AA, including the Board’s former credit practices rules (Subpart B)
• Former Federal Reserve Board “Staff Guidelines on the Credit Practices Rule”
• Federal Trade Commission’s Credit Practices Rule, including the FTC’s analyses and
findings regarding the prohibited practices
Cross Reference:
• CA 04-2 “Unfair or Deceptive Acts or Practices by State-Chartered Banks” (March 11,
2004)
• CA 07-08 “Consumer Compliance Examination Procedures for the Unfair or Deceptive
Acts or Practices Provisions of Section 5 of the Federal Trade Commission Act”
(November 6, 2007)

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