Last week I listed 9 separate federal law notices that may be required in a consumer credit transaction. See here. I was striving for 10. So far no one has told me that I omitted one.

This week’s challenge is to identify the federal law or regulation that mandates the adoption of polices required of a loan company or credit seller. Let’s see if you recognize the following and can then name the body of law or federal agency that dictates your compliance:

Record Retention is actually required by several different statutes including the Equal Credit Opportunity Act and the Truth-in-Lending Act. And, come to think of it, unless you keep complete records, you cannot prove that you have the other required policies in place. The Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) will be the chief regulators checking for record retention policy compliance. State regulators will as well.

Federal law and regulation also effectively require the adoption of a Compliance Management program or policy pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act. Throughout Title X of the Dodd-Frank Act and throughout the rules that have been adopted by the CFPB, there is constant reference to a Compliance Management strategy, begging for the adoption of a policy.

The Gramm-Leach-Blilely Act calls for a Privacy Policy. The Fair Credit Reporting Act requires policies addressing Risk-Based Pricing, Furnishing of credit information to credit reporting agencies, and a policy addressing theRed Flags of identity theft. The FTC and the CFPB regulate these policies. And, both of these agencies look for policies addressing Complaints, and the Safeguarding of a consumer’s personal, non-public information. Some state regulators also demand that you prove the existence of these policies.

Please Note: This is the sixtieth blog in a series of Back to Basics blogs, in which relevant and resourceful information can be easily accessed by clicking Dentons - Consumer Finance Report.