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Fighting Check Fraud

According to the Financial Crimes Enforcement Network, financial institutions filed over 680,000 Suspicious Activity Reports related to check fraud in 2022 – almost twice the number filed in 2021.

The American Bankers Association (ABA) will host a webinar on March 15 at noon CDT for members on check fraud and the measures banks can take to safeguard their customers. The session will cover how banks are combating check fraud, securing their customers' accounts and preserving their brand reputation. Three bankers will discuss the tools they employ, internal controls and collaboration with their core providers to obtain essential data to combat check fraud in their communities.

The ABA has also developed an analysis for members to explain the regulations around the timely return of a check and the process involved in returning it. Check fraud has resulted in more checks being returned to the institution that accepted them for deposit. The analysis clarifies rules relating to check returns and the determination of who bears the associated loss.

Register for the Webinar

Read the Analysis

Bankers, NBA Testify on Life Insurance Notice Legislation

Kevin Postier, Henderson State Bank (Henderson), and NBA Associate General Counsel Ryan McIntosh testified this week in support of LB 69. The measure would prohibit a life insurance policy subject to an assignment from being terminated or lapsed by reason of default in payment of any premium unless a notice of pending lapse or termination of the policy has been provided by the insurer to any known assignee at least 30 days prior to the effective date of the lapse and termination. The bill would also allow senior citizens to designate a third party to receive notices of cancellation, nonrenewal and conditional renewal of a life insurance policy.

The bill was introduced after an NBA member raised concerns that a term life insurance policy, which the lender had used as collateral, was canceled due to nonpayment of premium without any prior notice to the lender.

Kevin Postier, Henderson State Bank (Henderson), testified in support of LB 69 this week.

Legislative, Policy & Regulatory Updates

CFPB Releases Report on 'Junk Fees'

The Consumer Financial Protection Bureau (CFPB) published a new Supervisory Highlight report on "junk fees" uncovered in bank account deposits, auto loan servicing, mortgage loan servicing, payday lending and student loan servicing found during examinations between July 1, 2022, and Feb. 1, 2023.

Read the Report

Lawmakers Question Opening SBA 7(a) Program to Nonbanks

In a letter to the Small Business Administration (SBA), Small Business Committee Chairman Sen. Ben Cardin (D-Md.) and Ranking Member Sen. Joni Ernst (R-Iowa) asked the agency to consider "prudent guardrails" before making changes to the 7(a) program. The lawmakers said the SBA's proposed rule to extend 7(a) lending authority to nonbanks could lead to weaker underwriting standards.

Read the Letter

Associations Call for Extension of Credit Card Fee Rule Comment Period

Seven banking-related and credit union associations recently urged the CFPB to extend the comment period for a proposed rulemaking on credit card penalty fees by at least 60 days. "A rush to finalize significant changes to a long-standing rule that has endured through CFPB leadership appointed by both political parties, without providing sufficient time for commenters to provide data and other information on consumer and market impacts, would invite scrutiny and the likelihood of future revision, which would not benefit anyone," said the associations in a letter. In February, the bureau issued a proposed rule reducing the safe harbor for credit card late fees from $30 to $8 and eliminating the higher rate for repeat violations.

Read the Letter

USPS Cash Deposit Rule Implementation Extended

A rule by the U.S. Postal Service (USPS) requiring commercial cash deposits over $500 to be sent via registered mail will take effect on April 30. The rule was originally scheduled to be implemented on March 1.

Learn More

Help students become proficient networkers and meet bankers by participating in a University of Nebraska-Lincoln College of Business practice networking event. The sessions are May 8-12 from 8:30 to 9:20 a.m.

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