The Roundup: The FDIC Ramps up Fintech Scrutiny, Deceptive AI Claims, and UDAAP Updates
Welcome to the PerformLine Regulatory Compliance Roundup, home of the latest news, articles, and reports from our industry, curated for you. Let’s get into it.
In this edition: The FDIC ramps up fintech scrutiny, the FTC takes action against a company for deceptive claims, the OCC issues an updated version of the UDAAP booklet of the Comptroller’s handbook, the FDIC offers more Q&A on official signs, advertising rules, false advertising, misrepresentation of insured status, and misuse of FDIC name/logo, the 2025 state of marketing compliance survey, and the CFPB Ombudsman’s Office 2024 annual report.
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FDIC Ramps Up Fintech Scrutiny
The FDIC has begun direct monitoring of fintech companies that partner with banks to proactively address risks that could affect the banking sector. This enhanced oversight aims to ensure consistent supervision of fintech entities, even as they change banking partners. The move follows recent disruptions in bank-fintech partnerships, highlighting the importance of safeguarding financial stability and protecting consumers.
FTC Takes Action Against Company for Deceptive Claims
The FTC has taken action against a company for making unsubstantiated claims about its AI-powered facial recognition technology, including its accuracy and fairness across demographics. This enforcement underscores the FTC’s growing focus on holding companies accountable for unproven claims about AI performance. Under a proposed consent order, the company must provide reliable evidence for future claims and is prohibited from making misleading statements about its AI technology.
Significant Stat: 43%: The percentage of enforcement actions taken by state regulators in Q3, 2024. Read more
OCC Issued Updated Version of UDAAP Booklet of Comptroller’s Handbook
The OCC has updated its “Unfair or Deceptive Acts or Practices and Unfair, Deceptive, or Abusive Acts or Practices” booklet in the Comptroller’s Handbook. The revision enhances guidance for examiners on supervising banks’ compliance with UDAAP regulations under the FTC and Dodd-Frank Acts. Key updates include clarified risk management practices, overdraft guidance, and insights on data protection from the CFPB. The updated booklet also refreshes risk indicators and replaces the June 2020 version.
FDIC Offers More Q&A on Official Signs, Advertising Rules, False Advertising, Misrepresentation of Insured Status, and Misuse of FDIC Name/Logo
The FDIC has released additional Q&As to clarify its final rule on official signs, advertising requirements, and the misuse of the FDIC’s name or logo, as outlined in Part 328. These Q&As address common inquiries from stakeholders—including banks, trade associations, and technology companies—on topics such as the placement of official signs, advertising statements across various platforms, and the use of digital signage.
2025 State of Marketing Compliance Survey
We’re conducting our annual State of Marketing Compliance survey, and we’re interested in hearing what’s on your radar for 2025.Share your expertise and insights on marketing compliance trends and expectations. In return, you’ll be the first to receive a copy of our State of Marketing Compliance Report early next year. Take the survey.
CFPB Ombudsman’s Office 2024 Annual Report
The CFPB Ombudsman’s Office released its 2024 Annual Report, highlighting its role in addressing process issues with independence and impartiality. The report details collaborations within the CFPB, outreach to stakeholders, and feedback on resources like whistleblower guidance and survey authenticity. It also discusses the confidential post-examination survey for supervised entities, allowing feedback on examination processes, and underscoring its focus on promoting fair and effective CFPB practices.
