Yesterday I spoke at the Northwest Card Association members meeting on Data Privacy/Cyber Liability Insurance. Just before my presentation, Mary Sroufe, Director of Regulatory Affairs
with the Washington Credit Union League, discussed some of the issues facing financial institutions that are issuing credit cards. You can find the Truth in Lending Act here: http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20090715a1.pdf
Considering the amount of changes, the time frame to implement the changes, and the fines & penalties associated it will be critical that financial institutions have coverage for regulatory compliance. Recently some insurance carriers have excluded this line of coverage. With a minimum penalty of $500.00 per credit card issued, this can result in a significant financial loss.
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