FDIC: Most Banks Break Consumer Laws, and Mostly by Mistake

By Anason, Dean | American Banker, September 15, 1997 | Go to article overview

FDIC: Most Banks Break Consumer Laws, and Mostly by Mistake


Anason, Dean, American Banker


Consumer compliance regulations continue to frustrate banks despite recent government efforts to simplify the rules.

Seventy-five percent of banks examined by the Federal Deposit Insurance Corp. last year violated the Truth-in-Lending and Real Estate Settlement Procedures acts.

Close behind on the FDIC's list of the 10 most commonly violated consumer and fair-lending laws were equal credit opportunity, fair housing, and Truth-in-Savings. In addition, 65% of institutions erred in reporting Home Mortgage Disclosure Act data.

The ranking of violations was included in a Sept. 2 letter to the chief executives and compliance officers of institutions overseen by the FDIC. The agency culled the data from examinations of 2,031 institutions and reviews of HMDA data from 1,021 institutions in 1996.

Most of these violations are minor and "inadvertent errors," said Steven D. Fritts, associate director of compliance and consumer affairs. "In almost all our institutions, the violations are exceptions, not the rule."

Some violators pay the price. The FDIC forced 148 banks to repay $1.4 million to 6,272 customers for Truth-in-Lending violations in 1996. In addition, three institutions and 10 people were penalized $123,500 last year for compliance errors.

The list of the 10 most violated regulations has remained consistent during the past three years, although the number of Truth-in-Savings and HMDA violators rose about 10 percentage points each from 1994 to 1996.

But agency officials said the number of egregious violations has dropped, primarily because of increased enforcement and more education programs.

Fewer than 1% of FDIC-supervised institutions in 1996 received failing Community Reinvestment Act or low overall compliance ratings-down from 5. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

FDIC: Most Banks Break Consumer Laws, and Mostly by Mistake
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.