Weekly RoundUp
June 13, 2024

OCC Revises Comptroller’s Handbook Booklet for Retail Nondeposit Investment Products

In this issue. The Office of the Comptroller of the Currency (OCC) revised the Comptroller’s Handbook booklet for retail nondeposit investment products; the Consumer Financial Protection Bureau (CFPB) proposed to ban medical bills from credit reports; the CFPB warned against deceptive terms or conditions in consumer contracts; the CFPB released its Semi-Annual Report; and the the Securities and Exchange Commission (SEC) is inviting regulated entities to submit self-assessments of diversity policies and practices. These and other developments are discussed in more detail below.

Regulatory Developments

OCC Revises Comptroller’s Handbook Booklet for Retail Nondeposit Investment Products
On June 11, the OCC issued version 2.0 of the “Retail Nondeposit Investment Products” booklet of the Comptroller’s Handbook, replacing version 1.0 and rescinding OCC Bulletin 2015-2 (“Retail Nondeposit Investment Products: Revised Comptroller’s Handbook Booklet and Rescissions”). The revised booklet addresses risks and risk management practices associated with the recommendation or sale of nondeposit investment products to retail customers and provides examiners with a framework for evaluating a bank’s retail nondeposit investment product program. The revisions also incorporate regulatory changes adopted in the SEC’s Regulation Best Interest and reflect OCC and interagency issuances published or rescinded since January 2015.

CFPB Proposes to Ban Medical Bills from Credit Reports

On June 11, the CFPB issued a proposed rule to remove the 2005 exception to the Fair and Accurate Credit Transactions Act of 2003 (FACT Act) that allows lenders to obtain and use information about medical debt to make credit eligibility determinations, thereby prohibiting credit reporting companies from including medical debt on credit reports sent to creditors when creditors are prohibited from considering it. The proposed rule would also prohibit lenders from taking medical devices as collateral for a loan and from repossessing medical devices if people are unable to repay the loan. Under certain conditions, lenders could still consider medical information related to disability income and similar benefits and medical information relevant to the purpose of the loan. Comments on the proposed rule must be received by August 12.

CFPB Warns Against Deception in Contract Fine Print
On June 4, the CFPB issued a circular warning that including unlawful or unenforceable terms or conditions in a contract for consumer financial products or services could be a deceptive act or practice in violation of the Consumer Financial Protect Act (CFPA). Such terms include disclaimers or waivers of rights granted to consumers by state or federal law. For example, the Truth in Lending Act prohibits forcing homeowners into arbitration or other nonjudicial procedures to resolve problems with a mortgage transaction; the Electronic Fund Transfer Act grants consumers certain error resolution rights that no consumer contract can limit. The CFPB noted that disclaimers or waivers qualified by “subject to applicable law” or “except where unenforceable,” or disclaimers issued after the fact, are unlikely to cure a misrepresentation caused by the inclusion of an unlawful or unenforceable contract term. The CFPB also noted that companies can violate the CFPA even if the unlawful or unenforceable terms were derived from templates or widely available contracts.

“Federal and state laws ban a host of coercive contract clauses that censor and restrict individual freedoms and rights. The CFPB will take action against companies and individuals that deceptively slip these terms into their fine print.”
— Rohit Chopra, Director, CFPB

Semi-Annual Report of the Consumer Financial Protection Bureau

On June 4, the CFPB released its semi-annual report for Congress, covering its activities between April 1, 2023 and September 30, 2023, including significant rules, orders, and supervisory and enforcement actions, consumer complaints, state attorney general and regulatory actions, efforts to fulfill the CFPB’s fair lending mission, and workforce and contracting diversity at the CFPB. The report also reviews CFPB spending for FY 2023. Looking ahead, the CFPB highlighted its upcoming proposed rules, including personal financial data rights, defining participants for digital consumer payment applications, overdraft lending, fees for instantaneously declined transactions, as well as finalizing its rule on credit card penalty fees.

SEC Invites Regulated Entities to Submit Self-Assessments of Diversity Policies and Practices

On June 5, the SEC announced the commencement of its biennial collection of Diversity Self-Assessment Submissions from SEC regulated entities. The initiative is spearheaded by the SEC’s Office of Minority and Women Inclusion (OMWI) and allows organizations to thoroughly examine their diversity and inclusion policies and practices to identify strengths, opportunities, risks and vulnerabilities. The SEC utilizes the data from the Diversity Self-Assessment Submissions to evaluate and report on advancements and trends in the diversity-related activities of SEC regulated entities. To conduct and submit a self-assessment, entities may use the Diversity Self-Assessment Tool (DSAT) provided by the SEC or submit diversity self-assessments in the format of their choosing. OMWI has published a set of Frequently Asked Questions to provide additional information about self-assessments and the DSAT. Conducting and submitting a diversity self-assessment is voluntary and is not a part of the SEC’s examination process.

Check Out Goodwin's Latest Industry Insights

New Client Alert: JAMS Releases Mass Arbitration Procedures Following AAA’s Lead
In recent years, plaintiff-side attorneys have increasingly relied on a strategy of “mass arbitration” to force companies into in terrorem settlements, whereby large numbers of claims are settled quickly before the underlying merits of those claims can be tested. One primary driver of this strategy is the significant administrative-fee burden that is incurred for defendants in most arbitral fora when thousands of purportedly individual claims are filed simultaneously. To read our client alert, click here.

New Client Alert: New York Governor Signs LLC Transparency Act
On December 22, 2023, New York Gov. Kathy Hochul signed the LLC Transparency Act (as amended, the Act). The Act, modeled after the federal Corporate Transparency Act (CTA), aims to enhance the ability of the State of New York (NY) to monitor the ownership and control of limited liability companies (LLCs) formed or registered to do business in NY and deter their use in illegal activities. Gov. Hochul negotiated a compromise with the legislature for certain changes to be made to the Act as a condition to her signature. These changes were adopted through an amendment signed by Gov. Hochul on March 1, 2024. To read more on this act, click here.

Corporate Transparency Act (CTA) Resource Center
Go-to resource with on-demand webinars and compliance toolkit.

Consumer Finance Insights (CFI) Blog
The latest on consumer finance regulation, litigation, and enforcement.

Fintech Flash
The latest news and developments for the rapidly evolving fintech industry – which often can change in a flash.

Bank Failure Knowledge Center
Visit our knowledge center for timely updates and analysis on important developments related to bank failures. 


This informational piece, which may be considered advertising under the ethical rules of certain jurisdictions, is provided on the understanding that it does not constitute the rendering of legal advice or other professional advice by Goodwin or its lawyers. Prior results do not guarantee a similar outcome.