The Federal Reserve Consumer Compliance Outlook for Q1 2024 included an update to its 2015 article on this topic, highlighting “several changes” that have occurred in this space in the intervening period. The Fed also cautioned that “lenders may be overlooking commercial compliance issues if the primary focus of their loan compliance program is on the consumer side.”1 In this article, we outline the key tests you need to perform to demonstrate that your commercial products and services are compliant with consumer protection laws.   

Compliance monitoring and testing is of greatest value when it is preventative, enabling the bank to identify weaknesses and avoid inadvertent violations of law. Results of this monitoring and testing are best addressed by strengthening internal controls to ensure apparent violations will not be repeated. 

Most bank compliance monitoring and transaction testing schedules are risk-based, meaning the schedule prioritizes those regulations most applicable to the bank, and with the greatest potential for violations of law. 
If your schedule does not include commercial products and services, you could be violating the law without realizing it.