CREDITOR COMPLIANCE CHECKLIST
All creditors must keep in mind various legal requirements in addition to compliance with state lending/interest laws and federal disclosure requirements under Regulation Z. These other legal requirements include:
- The Federal Gramm Leach Bliley Act privacy provisions (GLBA) require that creditors provide customers an initial privacy notice no later than when a loan transaction is entered into and then annually for the duration of the customer relationship.
- The Equal Credit Opportunity Act (ECOA) requires that when an applicant is denied credit, the creditor provide the applicant certain information regarding the denial.
- The Federal Fair Credit Reporting Act (FCRA) requires that creditors that furnish negative information on a customer to a credit reporting agency provide the customer notice of the furnishing of negative information.
- The federal FCRA requires that when an applicant is denied credit, the creditor provide the applicant with information regarding the right to a free credit report if the denial was based on information in a credit report.
- In addition to the federal GLBA, ECOA and FCRA, some states have additional privacy, discrimination and fair credit reporting requirements applicable to creditors.
- Effective January 1, 2010, the Ohio Mortgage Loan Act will require that all registrants under that Act comply with the Federal Fair Debt Collection Practices Act (FDCPA) when collecting their own debts (even though the FDCPA by its own terms does not apply to creditors collecting their own debts).
Please let us know if you would like additional information on any of these requirements.
- Darrell Dreher and Elizabeth Anstaett