In April 2016, the U.S. Department of Labor (DOL) published its final rule—widely referred to as the “fiduciary rule”—amending the regulatory definition of “fiduciary investment advice” in 29 CFR 2510.3-21, replacing a five-part test that long has governed whether a person is deemed to render…
Question: We recently had an elderly customer sign a power of attorney (POA) form allowing her caretaker to help with her finances. Several years ago, the same customer had provided her son with a POA. Last week the customer’s caretaker came into the bank and wanted to cash a check made out to…
Question 1: Our bank recently entered into a marketing agreement with an insurance company, with the goal of generating additional income by offering life and property insurance products to our loan customers. Does Indiana law allow us to require customers to obtain insurance with their loans?…
While financial institutions are typically aware of their responsibilities under the Americans with Disability Act (the “ADA” or the “Act”) as they relate to the maintenance of their physical office spaces and overall general corporate policies, recently some institutions have been recipients of…
Question: Our bank has several pre-need funeral trust accounts that are funded by insurance policies. We would like to be able to redeem the policy and simply fund the trust with other bank funds. Does Indiana law allow us to do so?
Answer: No. The issue of converting pre-need funeral trust funds…
As seen in the September 2016 issue of the Indiana Banker Association's Hoosier Banker.
Question: Recently an individual attempted to open a checking account at our bank using identification from the “Moorish Temple Science of the World.” When our customer service representative explained that…
The Consumer Financial Protection Bureau (the “CFPB” or the “Bureau”) released their Proposed Payday, Vehicle Title and Certain High Cost Installment Loans Rule (the “Proposed Rule”) on June 2, 2016 in conjunction with their planned Field Hearing on Small Dollar Lending. While the Proposed Rule is…
As seen in the August 2016 issue of the Indiana Banker Association's Hoosier Banker.
Question 1: We encourage our customers to teach their children financial literacy at an early age, and offer savings accounts for minors when linked to a parent’s or guardian’s account. Recently a 16-year-old…
As seen in the July issue of the Indiana Banker Association's Hoosier Banker.
Question No. 1: Our bank recently foreclosed on a consumer mortgage, and before vacating the property the borrower removed all of the copper piping and cabinets from the home. When we approached the local prosecutor’s…
As seen in the June issues of the Indiana Banker Association's Hoosier Banker
Question No. 1: Does Indiana law limit how much a bank can lend to one borrower, or to a group of associated borrowers, at a time?
Answer: Yes, although the calculation of these limits will vary, based on the…
The Consumer Financial Protection Bureau (the “CFPB” or the “Bureau”) released their long anticipated Proposed Rule on Arbitration late last week (the “Proposed Rule” or the “Rule”), significantly limiting the use of pre-dispute arbitration provisions in consumer financial products and services…
We received several questions about the Compliance Connection article that appeared in a recent edition of the Hoosier Banker, 1 providing guidance on the new TILARESPA Integrated Disclosure (TRID) requirements2 that took effect Oct. 3, 2015, with respect to deficiency judgments. The question as to…
