The Consumer Financial Protection Bureau issued guidance yesterday on how banks and other financial providers under its jurisdiction can show they are responsible from a "Self-Policing, Self-Reporting, Remediation, and Cooperation" standpoint and hopefully influence discretionary enforcement functions favorably.

“there are activities they can engage in both before and after the conduct in question has occurred that the Bureau may favorably consider in exercising its enforcement discretion. Specifically, a party may proactively self-police for potential violations, promptly self-report to the Bureau when it identifies potential violations, quickly and completely remediate the harm resulting from violations, and affirmatively cooperate with any Bureau investigation above and beyond what is required.”

The CFPB’s announcement is here and the guidance itself can be read here.

Some will recall concerns raised in past years by the FAA over the compliance of some S- LSA manufacturers with the industry “consensus standards” that take the place of formal regulatory certification requirements. Now available on the FAA website is the June 4, 2013 Order 8130.36, providing guidance for the implementation of the FAA’s audit program. The Order, which involves compliance audits in order to determine compliance and to “identify national trends that may require developing or revising regulation, policy, or guidance” is available here.

In a written interpretation published June 18, 2013, the FAA Chief Counsel’s office held the Part 135 rest and duty requirements preclude any work for the certificate holder or a related company during required rest periods. Applying the  135.273(a) definition of rest period as “the period free of all responsibility for work or duty should the occasion arise,” to Part 135 pilots, the Chief Counsel’s office held a pilot cannot work for the certificate holder’s FBO, saying, “The short answer is that work performed for the certificate holder cannot take place during a required rest period.” The opinion is available here.

The Consumer Financial Protection Bureau  yesterday announced the creation of a new Regulatory Implementation web page as a one-stop location with links to the new 2013 mortgage rules and related implementation materials. Per the CFPB, “This is an effort to support rule implementation and ensure that industry is ready to comply with the new borrower protections.”  The new page is  here.

In a report released today, the Consumer Finance Protection Bureau noted that the users of overdraft coverage in checking accounts are more likely than non-users to pay hundreds of dollars in fees, in some cases beyond consumer expectations and with disclosures made in a “technical manner that may not be readily understandable.”

According to the CFPB, “…our findings with respect to the number of consumers who are incurring heavy overdraft fees or account closures and the wide variations across institutions indicate that certain practices and procedures merit further analysis to determine whether they are causing the kind of consumer harm that the federal consumer protections laws are designed to prevent. The CFPB will continue its study of overdraft programs… [which]… will help the CFPB assess whether further action is warranted…”

The report is available here.

Good news. The OCC today issued a news release to say that improvements in key market sectors in the western part of the US have had positive effects on the condition of community banks and thrifts in the western part of the US, although commercial credit continues to present the highest risk to community bank earnings. The release and OCC Fact Sheet can be viewed here.

The FAA revised its policy regarding the use of GPS for alternate airport planning to authorize planning for non-WAAS GPS approaches at either the destination or the alternate (but not both). Primarily directed to the contents of OpSpecs it  probably has broader application since OpSpecs tend to be more restrictive. The bulletin is here.

The existing policy  required  pilots and operators to plan an alternate  with an IAP using used approach navigation other than GPS (unless the GPS used WAAS). The announced revision to FAA Order 8900.1, Flight Standards Information Management Systems (FSIMS), Volume 3, Chapter 18, Section 5:

  1. reaffirms that operators with WAAS navigation may have OpSpecs allowing for planning  GPS-based IAPs at both the destination and the alternate; and
  2. changes the non-WAAS policy to permit non-WAAS GPS operators OpSpecs to permit planning for a GPS approach at either the destination or the alternate (but not both).

The DOT’s Office of Inspector General issued its semi-annual report to Congress for the Oct – March 2013 period. Mentioned are the results of a number of investigations resulting in criminal penalties. Significant activity includes prosecutions related to maintenance-related activities improper activities – counterfeit “yellow tags,” fake STCs, and the like. Also mentioned is a prosecution against a pilot for falsifying information on a medical certificate application. The OIG report is available here.

The February 2013 Reg Z amendment prohibiting limitations on certain consumer litigation rights for loans secured by a dwelling goes into effect tomorrow, June 1, 2013. The amendment includes a ban on mandatory binding arbitration clauses [Reg Z § 226.36(h)]. The February 15 Final Rule can be viewed on the GPO FDsys at http://goo.gl/6dfvF

The DOT inspector General announced that a Texas resident has been criminally charged for attaching false “yellow tags” and selling the items of eBay. It appears, at this point, that these are state charges.

Inspector General announcementTarrrant County, TX docket