NCJ Number
54207
Date Published
1979
Length
22 pages
Annotation
THE FEDERAL RESERVE SYSTEM BOARD OF GOVERNORS REPORTS TO CONGRESS ON ENFORCEMENT OF THE EQUAL CREDIT OPPORTUNITY ACT (ECOA) AND ITS IMPLEMENTING REGULATION (REGULATION B) DURING 1978.
Abstract
SPECIAL CIVIL RIGHTS ENFORCEMENT EFFORTS, INCLUDING TRAINING FOR BANK EXAMINERS ON HOW TO DETECT DISCRIMINATORY CREDIT PRACTICES, ARE NOTED. THE BOARD'S COMPLIANCE ACTIVITIES IN 1978 ARE DESCRIBED, AND THOSE OF OTHER FEDERAL AGENCIES RESPONSIBLE FOR ENFORCING THE ECOA ARE SUMMARIZED. DURING THE YEAR, THE BOARD CONDUCTED SPECIAL EXAMINATIONS OF 800 STATE MEMBER BANKS TO DETERMINE COMPLIANCE WITH CONSUMER CREDIT REGULATIONS. APPROXIMATELY THREE-QUARTERS OF THE BANKS WERE FOUND TO BE IN NONCOMPLIANCE. MOST VIOLATIONS RELATED TO THE USE OF NONCOMPLYING CREDIT APPLICATION FORMS. DURING THE FIRST 10 MONTHS OF 1978, THE BOARD RECEIVED 304 COMPLAINTS AGAINST STATE MEMBER BANKS, OF WHICH 260 CHARGED UNFAIR DENIAL, TERMINATION, OR CHANGE IN TERMS OF CREDIT. THE BANK WAS FOUND TO BE LEGALLY CORRECT IN 139 OF THE 168 COMPLAINTS INVESTIGATED. THE REPORT TOUCHES BRIEFLY ON ENFORCEMENT AGENCIES' RECOMMENDATIONS FOR AMENDING THE ECOA, ON EFFORTS BY THE FIVE FEDERAL AGENCIES THAT SUPERVISE FEDERALLY INSURED FINANCIAL INSTITUTIONS TO DEVELOP UNIFORM GUIDELINES FOR ENFORCING REGULATION B, AND ON THE BOARD'S PLANS FOR A COMPREHENSIVE REVIEW OF ALL THE REGULATIONS IT ENFORCES. THE RESULTS OF TWO STUDIES--A MAJOR SURVEY OF CONSUMER AWARENESS OF THE ECOA AND A LESS EXTENSIVE SURVEY OF CREDITORS--ARE SUMMARIZED. THE ACTIVITIES OF THE BOARD'S CONSUMER ADVISORY COUNCIL ARE NOTED. AMENDMENTS AND INTERPRETATIONS OF REGULATION B ISSUED DURING 1978 ARE OUTLINED, TOGETHER WITH THE BOARD'S CONSUMER EDUCATION ACTIVITIES FOR THE YEAR. SUPPORTING DATA FROM THE SURVEYS AND A ROSTER OF ADVISORY COUNCIL MEMBERS ARE INCLUDED. (LKM)