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Interagency Guidance Issued on Unfair or Deceptive Acts or Practices by State-Chartered Banks
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March 12, 2004
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| Circular No. 11583 | |
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To All Depository Institutions and Others Concerned in the Second Federal Reserve District: In a press release, the Federal Reserve Board and the Federal Deposit Insurance Corporation today issued guidance outlining standards they will apply to determine when acts or practices by state-chartered banks are unfair or deceptive. Such practices are illegal under section five of the Federal Trade Commission (FTC) Act. The statement also provides guidance on steps that state-chartered banks can take to avoid engaging in unfair or deceptive acts or practices. The approach outlined in the statement is based on long-established standards used by the FTC to enforce section five of the FTC Act against non-bank entities. Although the majority of insured banks adhere to a high level of professional conduct, banks must remain vigilant against possible unfair or deceptive acts or practices both to protect consumers and to minimize their own risks. Press release Contact:
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