82 FR 5541 - Compliance Bulletin 2016-03: Detecting and Preventing Consumer Harm From Production Incentives

BUREAU OF CONSUMER FINANCIAL PROTECTION

Federal Register Volume 82, Issue 11 (January 18, 2017)

Page Range		5541-5543
FR Document		2017-01021
The Bureau recognizes that many supervised entities may choose to implement incentive programs to achieve business objectives. When properly implemented and monitored, reasonable incentives can benefit consumers and the financial marketplace as a whole. This bulletin compiles guidance that has previously been given by the CFPB in other contexts and highlights examples from the CFPB's supervisory and enforcement experience in which incentives contributed to substantial consumer harm. It also describes compliance management steps supervised entities should take to mitigate risks posed by incentives.
Federal Register, Volume 82 Issue 11 (Wednesday, January 18, 2017)
[Federal Register Volume 82, Number 11 (Wednesday, January 18, 2017)]
[Notices]
[Pages 5541-5543]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-01021]


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BUREAU OF CONSUMER FINANCIAL PROTECTION


Compliance Bulletin 2016-03: Detecting and Preventing Consumer 
Harm From Production Incentives

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Compliance Bulletin.

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SUMMARY: The Bureau recognizes that many supervised entities may choose 
to implement incentive programs to achieve business objectives. When 
properly implemented and monitored, reasonable incentives can benefit 
consumers and the financial marketplace as a whole.
    This bulletin compiles guidance that has previously been given by 
the CFPB in other contexts and highlights examples from the CFPB's 
supervisory and enforcement experience in which incentives contributed 
to substantial consumer harm. It also describes compliance management 
steps supervised entities should take to mitigate risks posed by 
incentives.

DATES: The Bureau released this Compliance Bulletin on its Web site on 
November 28, 2016

FOR FURTHER INFORMATION CONTACT: Vanessa Careiro, Attorney-Advisor, 
Office of Supervision Policy, 1700 G Street NW., 20552, (202) 435-9394.

SUPPLEMENTARY INFORMATION: 

1. Compliance Bulletin

    Financial services companies, including entities supervised by the 
Consumer Financial Protection Bureau (CFPB or Bureau), may accomplish 
business objectives through programs that tie outcomes to certain 
benchmarks, both required and optional. Companies may apply these 
production incentives, including sales and other incentives, 
(``incentives'') to employees or service providers or both. The risks 
these incentives may pose to consumers are significant and both the 
intended and unintended effects of incentives can be complex, which 
makes this subject worthy of more careful attention by institutional 
leadership, compliance officers, and regulators alike. We thus will 
continue to invite further dialogue and discussion around the issues 
addressed in this Bulletin.
    The Bureau acknowledges that incentives have been common across 
many economic sectors, including the market for consumer financial 
products and services. When properly implemented and monitored, 
reasonable incentives can benefit all stakeholders and the financial 
marketplace as a whole. For instance, companies may be able to attract 
and retain high-performing employees to enhance their overall 
competitive performance. Consumers may also benefit if these programs 
lead to improved customer service or introduce them to products or 
services that are beneficial to their financial interests.
    Such incentives can affect a wide range of outcomes for employees 
or service providers, from their compensation levels to whether they 
will continue to be employed or retained at all. Incentives are found 
in many markets for consumer financial products and services, and span 
the life cycle from marketing to sales, servicing, and collection. 
Common examples include sales or referrals of new products or services 
to existing consumers (``cross-selling''), sales of products or 
services to new customers, sales at higher prices where pricing 
discretion exists, quotas for customer calls completed, and collections 
benchmarks.
    This Bulletin compiles guidance the CFPB has already given in other 
contexts and highlights examples from the CFPB's supervisory and 
enforcement experience in which incentives contributed to substantial 
consumer harm. It also describes compliance management steps that 
supervised entities should take to mitigate risks posed by incentives.

A. Risks to Consumers From Incentives

    Despite their potential benefits, incentive programs can pose risks 
to consumers, especially when they create an unrealistic culture of 
high-pressure targets. When such programs are not carefully and 
properly implemented and monitored, they may create incentives for 
employees or service providers to pursue overly aggressive marketing, 
sales, servicing, or collections tactics. Through its supervisory and 
enforcement programs, the CFPB has taken action where employees have 
opened accounts or enrolled consumers in services without consent or 
where employees or service providers have misled consumers into 
purchasing products the consumers did not want, were unaware would harm 
them financially, or came with an unexpected ongoing periodic fee.
    Depending on the facts and circumstances, such incentives may lead 
to outright violations of Federal consumer financial law \1\ and other 
risks to the institution, such as public enforcement, supervisory 
actions, private litigation, reputational harm,

[[Page 5542]]

and potential alienation of existing and future customers. Specific 
examples of problems include:
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    \1\ Selected examples of these violations previously identified 
by the Bureau include the Dodd-Frank Act's prohibition of unfair, 
deceptive, and/or abusive acts or practices (UDAAPs) (Dodd-Frank 
Act, Sec. Sec.  1031 & 1036(a), codified at 12 U.S.C. 5531 & 
5536(a); the Electronic Fund Transfer Act (EFTA), as implemented by 
Regulation E (15 U.S.C. 1693 et seq.; 12 CFR part 1005); the Fair 
Credit Reporting Act, as implemented by Regulation V (15 U.S.C. 
1681-1681x; 12 CFR part 1022); the Truth in Lending Act (TILA), as 
implemented by Regulation Z (15 U.S.C. 1601 et seq.; 12 CFR part 
1026); and the Fair Debt Collection Practices Act (15 U.S.C 1692-
1692p).
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     Sales goals may encourage employees, either directly or 
indirectly, to open accounts or enroll consumers in services without 
their knowledge or consent. Depending on the type of account, this may 
further result in, for example:
    [cir] Improperly incurred fees;
    [cir] Improper collections activities; and/or
    [cir] Negative effects on consumer credit scores.
     Sales benchmarks may encourage employees or service 
providers to market a product deceptively to consumers who may not 
benefit from or even qualify for it;
     Paying compensation based on the terms or conditions of 
transactions (such as interest rate) may encourage employees or service 
providers to overcharge consumers, to place them in less favorable 
products than they qualify for, or to sell them more credit or services 
than they had requested or needed;
     Paying more compensation for some types of transactions 
than for others that were or could have been offered to meet consumer 
needs, which could lead employees or service providers to steer 
consumers to transactions not in their interests; and
     Unrealistic quotas to sign consumers up for financial 
services may incentivize employees to achieve this result without 
actual consent or by means of deception.
    Whether conduct like that described in this Bulletin violates 
Federal consumer financial law will depend on all relevant facts 
related to the practices encouraged by the incentives. Further detail 
on some of the Bureau's work and findings in these areas is recapped 
below:
Credit Card Add-On Matters
    To date, the CFPB has resolved 12 different cases involving 
improper practices to market credit card add-on products or to retain 
consumers once enrolled in these products.\2\ The Bureau notes that 
incentives frequently enhanced the risk that banks would engage in such 
improper practices. In some cases, employees or service providers 
received incentives, and a lack of proper controls allowed deceptive 
marketing practices to continue unchecked for many years. Tapes of 
sales calls showed that employees and service providers deviated from 
the prepared call scripts in order to market the add-on products more 
aggressively, and often deceptively, to sign up more consumers. In all 
these matters, the companies' compliance monitoring, vendor management, 
and quality assurance programs failed to prevent, identify, or correct 
these practices in a timely manner.
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    \2\ For more information on all of the matters noted in this 
Bulletin, please refer to the Bureau's Web site at http://www.consumerfinance.gov/policy-compliance/enforcement/actions/.
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Overdraft Opt-In Matters
    Incentives played a role in at least one matter where consumers 
were deceived into opting in to overdraft services. The Bureau found 
that, as a result of incentives for hitting specific targets, a bank's 
telemarketing service provider had deceptively marketed overdraft 
services and enrolled certain bank consumers in those services without 
their consent.
Unfair and Abusive Sales Practices
    In another public enforcement action, a Bureau investigation 
revealed that thousands of bank employees had opened unauthorized 
deposit and credit card accounts to satisfy sales goals and earn 
financial rewards under the bank's incentives. Specifically, the Bureau 
found that employees engaged in ``simulated funding'' by opening 
hundreds of thousands of deposit accounts without consumers' knowledge 
or consent, which caused consumers to incur improper fees. The Bureau 
also found that employees issued tens of thousands of unauthorized 
credit cards that incurred improper fees, opened debit cards and 
created PINs to activate them without consumers' knowledge or consent, 
and enrolled consumers in online banking services using false email 
addresses.

B. The CFPB's Expectations

    The CFPB expects supervised entities that choose to utilize 
incentives to institute effective controls for the risks these programs 
may pose to consumers, including oversight of both employees and 
service providers involved in these programs. As the CFPB has 
emphasized repeatedly, a robust compliance management system (CMS) is 
necessary to detect and prevent violations of Federal consumer 
financial law.\3\ An entity's CMS should reflect the risk, nature, and 
significance of the incentive programs to which they apply. 
Accordingly, the strictest controls will be necessary where incentives 
concern products or services less likely to benefit consumers or that 
have a higher potential to lead to consumer harm, reward outcomes that 
do not necessarily align with consumer interests, or implicate a 
significant proportion of employee compensation. While the CFPB does 
not mandate any particular CMS structure and recognizes that CMS 
structures may appropriately vary based on the size and complexity of 
an organization, the Bureau's supervisory experience has found that an 
effective CMS commonly has the following components:
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    \3\ Supervision and Examination Manual: Compliance Management 
Review, available at http://www.consumerfinance.gov/policy-compliance/guidance/supervision-examinations/; Supervisory 
Highlights, multiple editions, available at http://www.consumerfinance.gov/policy-compliance/guidance/supervisory-highlights/.
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     Board of directors and management oversight;
     Compliance program, which includes:
    [cir] Policies and procedures;
    [cir] Training; and
    [cir] Monitoring and corrective action;
     Consumer complaint management program; and
     Independent compliance audit.
    To limit incentives from leading to violations of law, supervised 
entities should take steps to ensure their CMS is effective. These 
steps may include, but are not limited to:
     Board of directors and management oversight: Fostering a 
culture of strong customer service related to incentives. In product 
sales, for example, ensuring that consumers are only offered products 
likely to benefit their interests;
    [cir] Board members and senior management should consider not only 
the outcomes these programs seek to achieve, but also how they may 
incidentally incentivize outcomes that harm consumers. They should 
authorize compliance personnel to design and implement CMS elements 
that address both intended and unintended outcomes, and provide 
adequate resources to do so.
    [cir] The ``tone from the top'' should empower all employees to 
report suspected incidents of improper behavior without fear of 
retaliation, providing easily accessible means to do so.
     Policies and procedures: Ensuring that the policies and 
procedures for incentives contain:
    [cir] Employee sales/collections quotas that, if a part of an 
entity's incentive program, are transparent to employees and reasonably 
attainable;
    [cir] Clear controls for managing the risk inherent in each stage 
of the product life cycle (as applicable): marketing, sales (including 
account opening), servicing, and collections;

[[Page 5543]]

    [cir] Mechanisms to identify potential conflicts of interest posed 
for supervisory personnel who are covered by incentives but also are 
responsible for monitoring the quality of customer treatment and 
customer satisfaction; and
    [cir] Fair and independent processes for investigating reported 
issues of suspected improper behavior.
     Training: Implementing comprehensive training that 
addresses:
    [cir] Expectations for incentives, including standards of ethical 
behavior;
    [cir] Common risky behaviors for employees and service providers to 
foster greater awareness of primary risk areas;
    [cir] Terms and conditions of the institution's products and 
services so that they can be effectively described to consumers; and
    [cir] Regulatory and business requirements for obtaining and 
maintaining evidence of consumer consent.
     Monitoring: Designing overall compliance monitoring 
programs that track key metrics--and outliers--that may indicate 
incentives are leading to improper behavior by employees or service 
providers. Examples of possible monitoring metrics include, but are not 
limited to:
    [cir] Overall product penetration rates by consumer and household;
    [cir] Specific penetration rates for products and services (such as 
overdraft, add-on products, and online banking), as well as penetration 
rates by consumer segment;
    [cir] Employee turnover and employee satisfaction or complaint 
rates;
    [cir] Spikes and trends in sales (both completed and failed sales) 
by specific individuals and by units;
    [cir] Financial incentive payouts; and
    [cir] Account opening/product enrollment and account closure/
product cancellation statistics, including by specific individuals and 
by units, taking into account the terms of the incentive programs 
(i.e., requirements that accounts be open for a period of time or 
funded in order for employees to obtain credit under the program).
     Corrective Action: Promptly implementing corrective 
actions to address any incentive issues identified by monitoring 
reviews as areas of weakness:
    [cir] Corrective actions should include the termination of 
employees, service providers, and managers, as necessary, and these 
termination statistics should be analyzed for trends and root cause(s);
    [cir] Corrective actions should include changes to the structure of 
incentives, training on these programs, and return of funds to all 
affected consumers as appropriate in light of failed sales or 
heightened levels of customer dissatisfaction;
    [cir] All corrective actions should ensure that the root causes of 
deficiencies are identified and resolved; and
    [cir] Findings should be escalated to management and the board, 
particularly where they appear to pose significant risks to consumers.
     Consumer complaint management program: Collecting and 
analyzing consumer complaints for indications that incentives are 
leading to violations of law or harm to consumers in order to identify 
and resolve the root causes of any such issues; and
     Independent compliance audit: Scheduling audits to address 
incentives and consumer outcomes across all products or services to 
which they apply, ensuring audits are conducted independently of both 
the compliance program and the business functions, and ensuring that 
all necessary corrective actions are promptly implemented.
    For more information pertaining to the oversight of incentive 
programs, please review the CFPB's Supervision and Examination 
Manual.\4\ Specific modules referencing these programs include: 
Compliance Management Review, Unfair, Deceptive, and Abusive Acts or 
Practices, Debt Collection, Credit Card Account Management, Consumer 
Reporting, Mortgage Origination, Short-Term Small Dollar Lending, and 
the Equal Credit Opportunity Act. Other relevant Bureau guidance 
includes: CFPB Bulletin 2012-06 (Marketing of Credit Card Add-on 
Products),\5\ and CFPB Bulletin 2016-02 (Service Providers, amending 
and reissuing CFPB Bulletin 2012-03).\6\
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    \4\ CFPB Supervision and Examination Manual, available at http://files.consumerfinance.gov/f/201210_cfpb_supervision-and-examination-manual-v2.pdf.
    \5\ CFPB Bulletin 2012-06, available at http://files.consumerfinance.gov/f/201207_cfpb_marketing_of_credit_card_addon_products.pdf.
    \6\ CFPB Bulletin 2016-02, available at http://www.consumerfinance.gov/documents/1385/102016_cfpb_OfficialGuidanceServiceProviderBulletin.pdf.
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2. Regulatory Requirements

    This Compliance Bulletin is a non-binding general statement of 
policy articulating considerations relevant to the Bureau's exercise of 
its supervisory and enforcement authority. It is therefore exempt from 
notice and comment rulemaking requirements under the Administrative 
Procedure Act pursuant to 5 U.S.C. 553(b). Because no notice of 
proposed rulemaking is required, the Regulatory Flexibility Act does 
not require an initial or final regulatory flexibility analysis. 5 
U.S.C. 603(a), 604(a). The Bureau has determined that this Compliance 
Bulletin does not impose any new or revise any existing recordkeeping, 
reporting, or disclosure requirements on covered entities or members of 
the public that would be collections of information requiring OMB 
approval under the Paperwork Reduction Act, 44 U.S.C. 3501, et seq.

    Dated: January 5, 2017.
Richard Cordray,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2017-01021 Filed 1-17-17; 8:45 am]
BILLING CODE 4810-AM-P
Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Notices 5541

inform a decision of the best way to SUMMARY: The Bureau recognizes that service providers, from their
account for factory halibut in a many supervised entities may choose to compensation levels to whether they
regulated program. implement incentive programs to will continue to be employed or
This EFP would be valid upon achieve business objectives. When retained at all. Incentives are found in
renewal until either the end of 2017 or properly implemented and monitored, many markets for consumer financial
when the annual halibut mortality reasonable incentives can benefit products and services, and span the life
apportionment is reached in areas of the consumers and the financial cycle from marketing to sales, servicing,
BSAI open to directed fishing by the marketplace as a whole. and collection. Common examples
various sectors, whichever occurs first. This bulletin compiles guidance that include sales or referrals of new
EFP-authorized fishing activities would has previously been given by the CFPB products or services to existing
not be expected to change the nature or in other contexts and highlights consumers (‘‘cross-selling’’), sales of
duration of the groundfish fishery, gear examples from the CFPB’s supervisory products or services to new customers,
used, or the amount or species of fish and enforcement experience in which sales at higher prices where pricing
caught by the participants. incentives contributed to substantial discretion exists, quotas for customer
The fieldwork that would be consumer harm. It also describes calls completed, and collections
conducted under this EFP is not compliance management steps benchmarks.
expected to have a significant impact on supervised entities should take to This Bulletin compiles guidance the
the human environment as detailed in mitigate risks posed by incentives. CFPB has already given in other
the categorical exclusion prepared for DATES: The Bureau released this contexts and highlights examples from
this action (see ADDRESSES). Compliance Bulletin on its Web site on the CFPB’s supervisory and enforcement
In accordance with § 679.6, NMFS has November 28, 2016 experience in which incentives
determined that the renewal application FOR FURTHER INFORMATION CONTACT: contributed to substantial consumer
warrants further consideration and has Vanessa Careiro, Attorney-Advisor, harm. It also describes compliance
forwarded the application to the Office of Supervision Policy, 1700 G management steps that supervised
Council to initiate consultation. The Street NW., 20552, (202) 435–9394. entities should take to mitigate risks
Council is scheduled to consider the SUPPLEMENTARY INFORMATION:
posed by incentives.
EFP renewal application during its
1. Compliance Bulletin A. Risks to Consumers From Incentives
February 2017 meeting, which will be
held at the Renaissance Seattle Hotel, Financial services companies, Despite their potential benefits,
Seattle WA. The applicant has been including entities supervised by the incentive programs can pose risks to
invited to appear in support of the Consumer Financial Protection Bureau consumers, especially when they create
renewal application. (CFPB or Bureau), may accomplish an unrealistic culture of high-pressure
business objectives through programs targets. When such programs are not
Public Comments carefully and properly implemented and
that tie outcomes to certain benchmarks,
Interested persons may comment on both required and optional. Companies monitored, they may create incentives
the application at the February 2017 may apply these production incentives, for employees or service providers to
Council meeting during public including sales and other incentives, pursue overly aggressive marketing,
testimony or until February 7, 2017. (‘‘incentives’’) to employees or service sales, servicing, or collections tactics.
Information regarding the meeting is providers or both. The risks these Through its supervisory and
available at the Council’s Web site at incentives may pose to consumers are enforcement programs, the CFPB has
http://www.npfmc.org. Copies of the significant and both the intended and taken action where employees have
renewal application and categorical unintended effects of incentives can be opened accounts or enrolled consumers
exclusion are available for review from complex, which makes this subject in services without consent or where
NMFS (see ADDRESSES). Comments also worthy of more careful attention by employees or service providers have
may be submitted directly to NMFS (see institutional leadership, compliance misled consumers into purchasing
ADDRESSES) by the end of the comment
officers, and regulators alike. We thus products the consumers did not want,
period (see DATES). will continue to invite further dialogue were unaware would harm them
Authority: 16 U.S.C. 1801 et seq. and discussion around the issues financially, or came with an unexpected
addressed in this Bulletin. ongoing periodic fee.
Dated: January 12, 2017. Depending on the facts and
Samuel D. Rauch III, The Bureau acknowledges that
incentives have been common across circumstances, such incentives may
Deputy Assistant Administrator for lead to outright violations of Federal
Regulatory Programs, National Marine many economic sectors, including the
market for consumer financial products consumer financial law 1 and other risks
Fisheries Service. to the institution, such as public
[FR Doc. 2017–01063 Filed 1–17–17; 8:45 am]
and services. When properly
implemented and monitored, reasonable enforcement, supervisory actions,
BILLING CODE 3510–22–P
incentives can benefit all stakeholders private litigation, reputational harm,
and the financial marketplace as a 1 Selected examples of these violations previously
whole. For instance, companies may be identified by the Bureau include the Dodd-Frank
BUREAU OF CONSUMER FINANCIAL able to attract and retain high- Act’s prohibition of unfair, deceptive, and/or
PROTECTION performing employees to enhance their abusive acts or practices (UDAAPs) (Dodd-Frank
overall competitive performance. Act, §§ 1031 & 1036(a), codified at 12 U.S.C. 5531
mstockstill on DSK3G9T082PROD with NOTICES

Compliance Bulletin 2016–03: Consumers may also benefit if these & 5536(a); the Electronic Fund Transfer Act (EFTA),
Detecting and Preventing Consumer as implemented by Regulation E (15 U.S.C. 1693 et
programs lead to improved customer seq.; 12 CFR part 1005); the Fair Credit Reporting
Harm From Production Incentives service or introduce them to products or Act, as implemented by Regulation V (15 U.S.C.
services that are beneficial to their 1681–1681x; 12 CFR part 1022); the Truth in
AGENCY: Bureau of Consumer Financial Lending Act (TILA), as implemented by Regulation
Protection. financial interests. Z (15 U.S.C. 1601 et seq.; 12 CFR part 1026); and
Such incentives can affect a wide the Fair Debt Collection Practices Act (15 U.S.C
ACTION: Compliance Bulletin.
range of outcomes for employees or 1692–1692p).

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Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Notices 5543

Æ Mechanisms to identify potential appropriate in light of failed sales or regulatory flexibility analysis. 5 U.S.C.
conflicts of interest posed for heightened levels of customer 603(a), 604(a). The Bureau has
supervisory personnel who are covered dissatisfaction; determined that this Compliance
by incentives but also are responsible Æ All corrective actions should Bulletin does not impose any new or
for monitoring the quality of customer ensure that the root causes of revise any existing recordkeeping,
treatment and customer satisfaction; and deficiencies are identified and resolved; reporting, or disclosure requirements on
Æ Fair and independent processes for and covered entities or members of the
investigating reported issues of Æ Findings should be escalated to public that would be collections of
suspected improper behavior. management and the board, particularly information requiring OMB approval
• Training: Implementing where they appear to pose significant under the Paperwork Reduction Act, 44
comprehensive training that addresses: risks to consumers. U.S.C. 3501, et seq.
Æ Expectations for incentives, • Consumer complaint management
program: Collecting and analyzing Dated: January 5, 2017.
including standards of ethical behavior;
consumer complaints for indications Richard Cordray,
Æ Common risky behaviors for
employees and service providers to that incentives are leading to violations Director, Bureau of Consumer Financial
of law or harm to consumers in order to Protection.
foster greater awareness of primary risk
areas; identify and resolve the root causes of [FR Doc. 2017–01021 Filed 1–17–17; 8:45 am]
Æ Terms and conditions of the any such issues; and BILLING CODE 4810–AM–P
institution’s products and services so • Independent compliance audit:
that they can be effectively described to Scheduling audits to address incentives
consumers; and and consumer outcomes across all DEPARTMENT OF THE ARMY
Æ Regulatory and business products or services to which they
requirements for obtaining and apply, ensuring audits are conducted Notice of Intent To Prepare an
maintaining evidence of consumer independently of both the compliance Environmental Impact Statement in
consent. program and the business functions, and Connection With Dakota Access, LLC’s
• Monitoring: Designing overall ensuring that all necessary corrective Request for an Easement To Cross
compliance monitoring programs that actions are promptly implemented. Lake Oahe, North Dakota
track key metrics—and outliers—that For more information pertaining to
the oversight of incentive programs, AGENCY: Department of the Army, DoD.
may indicate incentives are leading to
please review the CFPB’s Supervision ACTION: Notice.
improper behavior by employees or
service providers. Examples of possible and Examination Manual.4 Specific
SUMMARY: This notice advises the public
monitoring metrics include, but are not modules referencing these programs
that the Department of the Army
limited to: include: Compliance Management
Review, Unfair, Deceptive, and Abusive (Army), as lead agency, is gathering
Æ Overall product penetration rates information necessary to prepare an
by consumer and household; Acts or Practices, Debt Collection,
Credit Card Account Management, environmental impact statement (EIS) in
Æ Specific penetration rates for connection with Dakota Access, LLC’s
products and services (such as Consumer Reporting, Mortgage
Origination, Short-Term Small Dollar request to grant an easement to cross
overdraft, add-on products, and online Lake Oahe, which is on the Missouri
banking), as well as penetration rates by Lending, and the Equal Credit
Opportunity Act. Other relevant Bureau River and owned by the US Army Corps
consumer segment; of Engineers (Corps). This notice opens
Æ Employee turnover and employee guidance includes: CFPB Bulletin 2012–
06 (Marketing of Credit Card Add-on the public scoping phase and invites
satisfaction or complaint rates; interested parties to identify potential
Æ Spikes and trends in sales (both Products),5 and CFPB Bulletin 2016–02
(Service Providers, amending and issues, concerns, and reasonable
completed and failed sales) by specific alternatives that should be considered
individuals and by units; reissuing CFPB Bulletin 2012–03).6
in an EIS.
Æ Financial incentive payouts; and 2. Regulatory Requirements
Æ Account opening/product DATES: To ensure consideration during
enrollment and account closure/product This Compliance Bulletin is a non- the development of an EIS, written
cancellation statistics, including by binding general statement of policy comments on the scope of an EIS should
specific individuals and by units, taking articulating considerations relevant to be sent no later than February 20, 2017.
into account the terms of the incentive the Bureau’s exercise of its supervisory The date of all public scoping meetings
programs (i.e., requirements that and enforcement authority. It is will be announced at least 15 days in
accounts be open for a period of time or therefore exempt from notice and advance through a notice to be
funded in order for employees to obtain comment rulemaking requirements published in the local North Dakota
credit under the program). under the Administrative Procedure Act newspaper (The Bismarck Tribune) and
• Corrective Action: Promptly pursuant to 5 U.S.C. 553(b). Because no online at https://www.army.mil/asacw.
implementing corrective actions to notice of proposed rulemaking is ADDRESSES: You may mail or hand
address any incentive issues identified required, the Regulatory Flexibility Act deliver written comments to Mr. Gib
by monitoring reviews as areas of does not require an initial or final Owen, Office of the Assistant Secretary
weakness: of the Army for Civil Works, 108 Army
4 CFPB Supervision and Examination Manual,
Æ Corrective actions should include Pentagon, Washington, DC 20310–0108.
available at http://files.consumerfinance.gov/f/
the termination of employees, service Advance arrangements will need to be
mstockstill on DSK3G9T082PROD with NOTICES

201210_cfpb_supervision-and-examination-
providers, and managers, as necessary, manual-v2.pdf. made to hand deliver comments. Please
and these termination statistics should 5 CFPB Bulletin 2012–06, available at http://files. include your name, return address, and
be analyzed for trends and root cause(s); consumerfinance.gov/f/201207_cfpb_marketing_of_ ‘‘NOI Comments, Dakota Access
Æ Corrective actions should include credit_card_addon_products.pdf. Pipeline Crossing’’ on the first page of
6 CFPB Bulletin 2016–02, available at http://
changes to the structure of incentives, www.consumerfinance.gov/documents/1385/
your written comments. Comments may
training on these programs, and return 102016_cfpb_OfficialGuidanceServiceProvider also be submitted via email to Mr. Gib
of funds to all affected consumers as Bulletin.pdf. Owen, at gib.a.owen.civ@mail.mil. If

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Document Created: 2018-02-01 15:19:33
Document Modified: 2018-02-01 15:19:33
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Compliance Bulletin.
Dates		The Bureau released this Compliance Bulletin on its Web site on November 28, 2016
Contact		Vanessa Careiro, Attorney-Advisor, Office of Supervision Policy, 1700 G Street NW., 20552, (202) 435-9394.
FR Citation		82 FR 5541