DIVISION OF CONSUMER AND

COMMUNITY AFFAIRS

CA 14-5

August 22, 2014

TO THE OFFICERS AND MANAGERS IN CHARGE OF CONSUMER AFFAIRS 

SECTIONS AND STATE MEMBER BANKS:

SUBJECT: Interagency Guidance Regarding Unfair or Deceptive Credit Practices 

Applicability to Community Banking Organizations: This guidance applies to all state 

member banks, including those with $10 billion or less in consolidated assets.

The Federal Reserve Board (Board), the Consumer Financial Protection Bureau, the 

Federal Deposit Insurance Corporation, the National Credit Union Administration (NCUA), and 

the Office of the Comptroller of the Currency (OCC) (collectively, the “Agencies”) are issuing

the attached interagency guidance regarding certain consumer credit practices. 

Prior to the Dodd–Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank 

Act), several rules prohibited banks, savings associations, and Federal credit unions from 

engaging in certain credit practices. The Dodd–Frank Act repealed the rulemaking authority for 

these credit practices rules and, consequently, the Board, the OCC, and the NCUA are repealing 

those former rules.1 This guidance states the Agencies’ view that the unfair or deceptive acts or 

practices described in these former credit practices rules, including those in the Board’s former 

Regulation AA, could violate the prohibition against unfair or deceptive acts or practices in 

section 5 of the Federal Trade Commission Act (“FTC Act”) and Title X of the Dodd-Frank Act, 

even in the absence of a specific regulation governing the conduct. 

The Board notes that the 2004 guidance, “Unfair or Deceptive Acts or Practices by StateChartered Banks,” which was transmitted with CA Letter 04-2, remains in effect. That guidance

outlines the standards that are considered in determining whether specific acts or practices by 

state member banks are unfair or deceptive under the FTC Act. 

Institutions and supervisory staff may reference the attachments to this CA letter in order 

to help determine whether a certain credit practice could be unfair or deceptive.

If you have any questions, please contact Mandie Aubrey, Counsel, or Maureen Yap, 

1 This guidance is being issued concurrently with a proposed repeal of the Board’s Regulation AA, which contains 

the former credit practices rules applicable to banks. The former credit practices rule applicable to savings 

associations was effectively repealed by the OCC as of July 21, 2011. The NCUA plans to repeal its version of the 

credit practices rule, which was applicable to Federal credit unions. See footnote 9 of the guidance. 

 
Special Counsel/Manager, at (202) 452-3667.

Sincerely,

Eric S. Belsky

Director

Attachments:

• Interagency Guidance Regarding Unfair or Deceptive Credit Practices

• Former Regulation AA, including the Board’s former credit practices rules (Subpart B)

• Former Federal Reserve Board “Staff Guidelines on the Credit Practices Rule”

• Federal Trade Commission’s Credit Practices Rule, including the FTC’s analyses and 

findings regarding the prohibited practices

Cross Reference: 

• CA 04-2 “Unfair or Deceptive Acts or Practices by State-Chartered Banks” (March 11, 

2004)

• CA 07-08 “Consumer Compliance Examination Procedures for the Unfair or Deceptive 

Acts or Practices Provisions of Section 5 of the Federal Trade Commission Act”

(November 6, 2007)

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