FTC Issues Annual Enforcement Report to CFPB

The FTC has continued to coordinate certain law enforcement, rulemaking and other activities with the CFPB in accordance with a Memorandum of Understanding.


The Federal Trade Commission has submitted its annual report to the Consumer Financial Protection Bureau on the FTC’s enforcement actions in 2015 related to compliance with Regulation Z (Truth in Lending Act), Regulation E (Electronic Fund Transfer Act) and Regulation M (Consumer Leasing Act).

The report addresses, among other things, the FTC’s enforcement actions related to non-mortgage credit (including automobile purchases and financing, and payday lending), mortgage loan advertising and forensic audit scams, according to a news release. It also addresses rulemaking, research and policy development related to truth in lending and consumer and business education regarding truth in lending requirements.

Among the enforcement actions highlighted in the report, the FTC notes that it had seven new or ongoing cases involving EFTA and Regulation E issues in 2015. The FTC also participated in research and policy work and educational activities involving EFTA and Regulation E, which governs many type of electronic payments.

While the FTC does not have rulemaking authority under the EFTA, the report notes that in 2015 the FTC amended the Telemarketing Sales Rule, which addresses issues related to the EFTA. “Among other things, the amended rule, for telemarketing transactions, bans the use of four payment methods that are favored by con artists and scammers that provide little or no systematic monitoring to detect fraud,” it states.

The FTC also reported engaging in law enforcement actions against those who market or extend non-mortgage credit last year. The actions include automobile financing, car title loans, payday loans and financing of consumer electronics.

The FTC retained its authority to enforce regulations under TILA, CLA and EFTA when the Dodd-Frank Act was signed into law in July 2010. The law also gave the FTC the authority to “enforce any CFPB rules applicable to entities with the FTC’s jurisdiction, which include most providers of financial services that are not banks, thrifts or federal credit unions.”

The FTC has continued to coordinate certain law enforcement, rulemaking and other activities with the CFPB in accordance with the memorandum of understanding the agencies agreed to in 2012 and reauthorized in 2015.

ACA members can access more information on EFTA and other laws through ACA SearchPoint. Members must be logged in to ACA’s website to access ACA SearchPoint documents.

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