Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 26

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 26
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 and regulations can cause
a lender to be liable for policies that result in a disparate treatment of or have a disparate impact on a protected class of persons.
If a pattern or practice of lending discrimination is alleged by a regulator, then the matter may be referred by the agency to the DOJ,
for investigation. In December 2012, the DOJ and CFPB entered into a Memorandum of Understanding under which the agencies have agreed
to share information, coordinate investigations, and have generally committed to strengthen their coordination efforts. In addition to
substantive penalties and corrective measures that may be required for a violation of certain fair lending laws, the federal banking
agencies may take compliance with fair lending requirements into account when regulating and supervising other activities of the bank,
including in acting on expansionary proposals.

Consumer
Protection Regulations 

The activities of the
Bank are subject to a variety of statutes and regulations designed to protect consumers. Bank regulatory agencies have increasingly used
a general consumer protection statute to address “unethical” or otherwise “bad” business practices that may not
necessarily fall directly under the purview of a specific banking or consumer finance law. The law of choice for enforcement against
such business practices has been Section 5 of the Federal Trade Commission Act—the primary federal law that prohibits “unfair
or deceptive acts or practices” and unfair methods of competition in or affecting commerce (“UDAP” or “FTC Act”).
“Unjustified consumer injury” is the principal focus of the FTC Act. Prior to the Dodd-Frank Act, there was little formal
guidance to provide insight to the parameters for compliance with the UDAP law. However, the UDAP provisions have been expanded under
the Dodd-Frank Act to apply to “unfair, deceptive or abusive acts or practices” (“UDAAP”). The CFPB has brought
a variety of enforcement actions for violations of UDAAP provisions and CFPB guidance continues to evolve.

Interest and other charges
collected or contracted for by us are subject to state usury laws and federal laws concerning interest rates. Our loan operations are
also subject to federal laws applicable to credit transactions, such as:

    ·
    the Truth-In-Lending Act, or “TILA,”
    and Regulation Z, governing disclosures of credit and servicing terms to consumer borrowers and including substantial requirements
    for mortgage lending and servicing, as mandated by the Dodd-Frank Act;

    ·
    the Home Mortgage Disclosure Act and Regulation
    C, requiring financial