WBK Industry News - Federal Regulatory Developments

FTC Provides Annual Letter to CFPB on ECOA Activities

The FTC recently provided the CFPB with a summary of its 2019 research and policy development and educational initiatives related to compliance with Regulation B and ECOA.  The letter, sent to the CFPB annually, is used by the agency in preparing its 2019 Annual Report to Congress.  The FTC stated that it is continuing to coordinate certain law enforcement, rulemaking, and other activities with the CFPB.

The letter provided information on some of the FTC’s research and policy development related to ECOA, including the following:

  • Agency hearings discussing completion and consumer protection issues, including discussions of the use of big data in automated decision making, how ECOA should inform the use of data collected, and how big data and algorithms impact access to credit;
  • Forums and workshops examining trends and issues concerning consumers, including the growth of online loans, alternative financing, and the accuracy of traditional credit and background screening reports; and
  • Interagency cooperation, including the agency’s work with the American Bar Association’s Standing Committee on Legal Assistance for Military Personnel.

The letter also highlighted the FTC’s consumer and business education efforts on fair lending issues.