Federal Trade Commission Act (FTC Act) The Federal Trade Commission Act (FTC Act) declares that unjust or misleading trade techniques are unlawful.
State nonmember banking institutions and their institution-affiliated events should be cited for violations of part 5 regarding the FTC Act therefore the FDIC takes action that is appropriate to its authority under area 8 for the Federal Deposit Insurance Act whenever unjust or misleading trade techniques are found. Examiners should concentrate attention on advertising programs for pay day loans, and be alert for possibly collection that is abusive. Of specific concern may be the practice of threatening, and perhaps pursuing, unlawful check that is bad, inspite of the re re payment of offsetting charges because of the consumer plus the lender’s knowledge during the time the check ended up being accepted that there have been inadequate funds to cover it. If proof of unjust or misleading trade methods is discovered, examiners should talk to the local workplace together with area should check with Washington.
Where entities except that banking institutions take part in unfair or misleading trade techniques, the FDIC will coordinate its reaction because of the Federal Trade Commission. (make reference to FIL-57-2002, dated might 30, 2002, for more information.)