Compliance Journal March 2025
Special Focus Compliance Date Postponed Again for Certain Portions of FDIC Part 328 Rule. The Federal Deposit Insurance Corporation (FDIC) has announced the postponement of the mandatory compliance date of Part 328.4 and 328.5 of its final advertising rule until March 1, 2026. Section 328.4 sets forth requirements of an official digital sign on automated teller machines (ATMs) and like devices. Section 328.5 includes signage requirements of digital deposit-taking channels. The delay is to allow additional time for implementation of the new signage and to resolve questions meant to alleviate customer confusion. On December 20, 2023, FDIC adopted a final rule that, among other things, amended FDIC’s sign and advertisement of membership requirements for insured depository institutions (IDIs). The amendments made by the final rule took effect on April 1, 2024; however, full compliance with the amendments was delayed to January 1, 2025. On October 17, 2024, full compliance with the amendments was delayed to May 1, 2025. As mentioned above, FDIC has further postponed the compliance date for the requirement to display the FDIC official digital sign on an IDI’s digital channels, as well as on the screen of an IDI’s ATMs and like devices. During this time, FDIC will continue to review the feedback received regarding implementation issues and potential consumer confusion that may result from requirements related to the display of the digital sign. After completing its review, FDIC expects to propose changes to the regulation to address implementation concerns and potential sources of confusion. FDIC acknowledges that some IDIs have implemented aspects of the final rule. However, aspects under section 328.5 to display the FDIC official digital sign on certain digital channel pages continue to generate questions regarding implementation. Compliance with other provisions in subpart A remains unchanged and generally is required by May 1, 2025. The announcement may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-03-11/pdf/2025-03790.pdf
Judicial Spotlight WI Court of Appeals Concludes NBA Does Not Preempt WCA Notice of Right to Cure Default Requirements The State of Wisconsin Court of Appeals (Court) recently concluded that the National Bank Act (NBA) does not preempt the Wisconsin Consumer Act (WCA) notice of right to cure default requirements. When the issue previously arose in Wisconsin, the Eastern and Western Districts were divided over whether the WCA provision is preempted. The Eastern District of Wisconsin in Boerner v. LVNV Funding LLC, 358 F. Supp. 3d 767, 776-77 (E.D. Wis. 2019), held that the WCA provision is not preempted, while the Western District of Wisconsin in Lako v. Portfolio Recovery Associates, No. 20-cv355-wmc (W.D. Wis. Aug. 4, 2021), held that it is preempted. As a result of the Court’s recent decision, nationally-chartered banks need be aware of the applicability of the notice of right to cure default requirements under Wisconsin Statute Chapter 425 for loans subject to WCA. WBA joined the amicus brief of the American Bankers Association (ABA), Bank Policy Institute (BPI), and the Wisconsin Chamber (Chamber) to be filed on behalf of the banking industry in the matter in Bank of America, N.A. v. Jean-Pierre