ABA Banking Journal - November/December 2016 - 53


number "of the consumer reporting
agency ... that furnished the report to
the person [user]." Because your trimerge vendor is a consumer reporting
agency and is providing your bank the
information, its contact information
should be included in the adverse
action notice. While there may be value
in providing the information of all three
bureaus, it is equally helpful to the
consumer to provide a single point of
contact to a vendor that can respond to
and direct consumers with questions.
In addition, Section 615(a)(2) requires
that the adverse action notice contain
any "numerical credit score [which
excludes proprietary scores] ... used
... in taking adverse action based in
whole or in part on any information in
a consumer report," and, among other
information, "the name of the person
or entity that provided the credit score
or credit file upon which the credit
score was created." Thus, as with
tri-merged reports, the notice should
include information about the entity
that provided the score-that is, the
provider of the tri-merged score.

directors or a committee of the
board of any report filed pursuant
to this section. Can you provide
any clarity as to what regulatory
expectations are for individual
SAR reporting to the board?
A: There is no hard and fast rule about
how to report SARs to the bank's
board of directors, and identifying
the best way to inform the board

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about them has challenged bankers
for quite some time. While the board
needs to be informed to carry out
its responsibilities, it doesn't need to
know all the details of each and every
SAR that's been filed. In fact, that's
not the intention of the section you
cited. As institutions grow and file a
larger volume of SARs, just providing
copies of all the SARs to the board
makes it difficult for them to grasp the

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As a side note, when the bank obtains
multiple scores, the adverse action
notice should disclose the score it
used, for example, the middle score.
If the bank uses multiple credit scores831374_Capital.indd
in setting the material terms of credit
(e.g., by computing the average of all
the credit scores), it must include one
of these scores. The notice may, at the
creditor's option, disclose all the credit
scores used. If there was no score,
then this fact would be reflected in the
adverse action notice per the Equal
Credit Opportunity Act requirements.
(Response provided July 2016)

CAPITAL MARKET CONSULTANTS, INC.
Investment Manager, Capital Market, and Economic Research

1

www.cmarkc.com
414-727-7995

31/08/16 10:29 pm

Q:

Section 12 C.F.R. §
353.3, addressing
board reporting of
Suspicious Activity
Reports, states that the
management of a bank shall
promptly notify its board of
822949_ECL.indd 1

aba.com/BankingJournal | ABA BANKING JOURNAL
8/3/16 53
7:00 PM


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Table of Contents for the Digital Edition of ABA Banking Journal - November/December 2016

Chairman’s View
Upfront
Picture This
Banking’s ‘Amazon Moment’
Special Report on Innovation and Technology
Building an ‘Internet of Value’
Do You Do What the Data Tell You?
Innovation in the Bank
Core Exercises
Cover Story Pillar of Her Community
Maintaining a Commitment to Ag Customers
Who You Gonna Call?
Anti-Money Laundering
Power Up Profile
Compliance ‘When Can I Call My Customer?’
Risk Management
ABA Compliance Center Inbox
From the States
Corporate Social Responsibility
Index of Advertisers
ABA Banking Journal - November/December 2016 - bellyband1
ABA Banking Journal - November/December 2016 - bellyband2
ABA Banking Journal - November/December 2016 - cover1
ABA Banking Journal - November/December 2016 - cover2
ABA Banking Journal - November/December 2016 - 3
ABA Banking Journal - November/December 2016 - 4
ABA Banking Journal - November/December 2016 - 5
ABA Banking Journal - November/December 2016 - 6
ABA Banking Journal - November/December 2016 - 7
ABA Banking Journal - November/December 2016 - Chairman’s View
ABA Banking Journal - November/December 2016 - 9
ABA Banking Journal - November/December 2016 - 10
ABA Banking Journal - November/December 2016 - Upfront
ABA Banking Journal - November/December 2016 - 12
ABA Banking Journal - November/December 2016 - 13
ABA Banking Journal - November/December 2016 - 14
ABA Banking Journal - November/December 2016 - 15
ABA Banking Journal - November/December 2016 - Picture This
ABA Banking Journal - November/December 2016 - 17
ABA Banking Journal - November/December 2016 - 18
ABA Banking Journal - November/December 2016 - 19
ABA Banking Journal - November/December 2016 - Special Report on Innovation and Technology
ABA Banking Journal - November/December 2016 - 21
ABA Banking Journal - November/December 2016 - 22
ABA Banking Journal - November/December 2016 - Building an ‘Internet of Value’
ABA Banking Journal - November/December 2016 - 24
ABA Banking Journal - November/December 2016 - 25
ABA Banking Journal - November/December 2016 - Do You Do What the Data Tell You?
ABA Banking Journal - November/December 2016 - 27
ABA Banking Journal - November/December 2016 - insert1
ABA Banking Journal - November/December 2016 - insert2
ABA Banking Journal - November/December 2016 - Innovation in the Bank
ABA Banking Journal - November/December 2016 - 29
ABA Banking Journal - November/December 2016 - 30
ABA Banking Journal - November/December 2016 - Core Exercises
ABA Banking Journal - November/December 2016 - Cover Story Pillar of Her Community
ABA Banking Journal - November/December 2016 - 33
ABA Banking Journal - November/December 2016 - 34
ABA Banking Journal - November/December 2016 - 35
ABA Banking Journal - November/December 2016 - 36
ABA Banking Journal - November/December 2016 - 37
ABA Banking Journal - November/December 2016 - Maintaining a Commitment to Ag Customers
ABA Banking Journal - November/December 2016 - 39
ABA Banking Journal - November/December 2016 - 40
ABA Banking Journal - November/December 2016 - Who You Gonna Call?
ABA Banking Journal - November/December 2016 - 42
ABA Banking Journal - November/December 2016 - 43
ABA Banking Journal - November/December 2016 - Anti-Money Laundering
ABA Banking Journal - November/December 2016 - 45
ABA Banking Journal - November/December 2016 - 46
ABA Banking Journal - November/December 2016 - Power Up Profile
ABA Banking Journal - November/December 2016 - 48
ABA Banking Journal - November/December 2016 - Compliance ‘When Can I Call My Customer?’
ABA Banking Journal - November/December 2016 - 50
ABA Banking Journal - November/December 2016 - Risk Management
ABA Banking Journal - November/December 2016 - ABA Compliance Center Inbox
ABA Banking Journal - November/December 2016 - 53
ABA Banking Journal - November/December 2016 - 54
ABA Banking Journal - November/December 2016 - From the States
ABA Banking Journal - November/December 2016 - 56
ABA Banking Journal - November/December 2016 - Corporate Social Responsibility
ABA Banking Journal - November/December 2016 - Index of Advertisers
ABA Banking Journal - November/December 2016 - cover3
ABA Banking Journal - November/December 2016 - cover4
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