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Advanced Search About the Fed News & Events Monetary Policy Supervision & Regulation Payment Systems Economic Research Data Consumers & Communities Board of Governors of the Federal Reserve System The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system. Home > News & Events > Press Releases Press Release September 15, 2009 Federal Reserve to implement consumer compliance supervision program of nonbank subsidiaries of bank holding companies and foreign banking organizations For immediate release Share The Federal Reserve, under a policy announced Tuesday, will implement a consumer compliance supervision program in nonbank subsidiaries of bank holding companies (BHCs) and foreign banking organizations (FBOs) with activities covered by the consumer protection laws and regulations the Federal Reserve has the authority to enforce. The policy, which will take effect immediately, also provides for the investigation of consumer complaints against these nonbank entities. In 2007, the Federal Reserve, along with the Federal Trade Commission (FTC), Office of Thrift Supervision (OTS), and two associations of state regulators, launched a joint pilot project that conducted targeted consumer protection compliance reviews of selected non-depository lenders with significant subprime mortgage operations. The policy announced today builds upon the groundwork of the pilot program and responds to a need for more effective supervision and consumer protection. It is designed to improve the Federal Reserve's understanding of the consumer compliance risk that certain products and services may pose to the holding companies and consumers and to guide supervisory activity for these entities. The Federal Reserve has authority to examine nonbank subsidiaries for compliance with the Truth in Lending Act (TILA); Equal Credit Opportunity Act (ECOA); Home Ownership and Equity Protection Act (HOEPA); Fair Credit Billing Act (FCBA); Consumer Leasing Act (CLA); Fair Credit Reporting Act (FCRA); Fair Debt Collection Practices Act (FDCPA); Home Mortgage Disclosure Act (HMDA); Truth in Savings Act (TISA); any rules promulgated pursuant to the Federal Trade Commission Act (FTC Act); and the Real Estate Settlement Procedures Act (RESPA). The Board's Consumer Affairs Letter is attached. CA Letter 09-08 Last Update: September 15, 2009 BOARD OF GOVERNORS of the FEDERAL RESERVE SYSTEM About the Fed News & Events Monetary Policy Supervision & Regulation Payment Systems Economic Research Data Consumers & Communities Financial Stability TOOLS AND INFORMATION STAY CONNECTED Contact Publications Freedom of Information (FOIA) Office of Inspector General Budget & Performance | Audit No FEAR Act Español Website Policies | Privacy Program Accessibility BOARD OF GOVERNORS of the FEDERAL RESERVE SYSTEM 20th Street and Constitution Avenue N.W., Washington, DC 20551
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