Sallie Mae 2015 Annual Report Download - page 13

11
Supervision and Regulation
Overview
We are subject to extensive regulation, examination and supervision by various federal, state and local authorities. The
more significant aspects of the laws and regulations that apply to us and our subsidiaries are described below. These
descriptions are qualified in their entirety by reference to the full text of the applicable statutes, legislation, regulations and
policies, as they may be amended, and as interpreted and applied, by federal, state and local agencies.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) was adopted to
reform and strengthen regulation and supervision of the U.S. financial services industry. It contains comprehensive provisions
to govern the practices and oversight of financial institutions and other participants in the financial markets. It mandates
significant regulations, additional requirements and oversight on almost every aspect of the U.S. financial services industry,
including increased capital and liquidity requirements, limits on leverage and enhanced supervisory authority. It requires the
issuance of many regulations, which will take effect over several years, making it difficult to anticipate the overall impact to us,
our affiliates, including the Bank, as well as our customers and the financial industry.
Consumer Protection Laws and Regulations
Our origination, servicing, first-party collection and deposit taking activities subject us to federal and state consumer
protection, privacy and related laws and regulations. Some of the more significant laws and regulations that are applicable to
our business include:
• various laws governing unfair, deceptive or abusive acts or practices;
• the federal Truth-In-Lending Act and Regulation Z issued by the CFPB, which govern disclosures of credit terms to
consumer borrowers;
• the Fair Credit Reporting Act and Regulation V issued by the CFPB, which govern the use and provision of
information to consumer reporting agencies;
• the Equal Credit Opportunity Act (“ECOA”) and Regulation B issued by the CFPB, which prohibit creditor practices
that discriminate on the basis of race, religion and other prohibited factors in extending credit;
• the Servicemembers Civil Relief Act (“SCRA”), which applies to all debts incurred prior to commencement of active
military service (including education loans) and limits the amount of interest, including fees, that may be charged;
• the Truth in Savings Act and Regulation DD issued by the CFPB, which mandate certain disclosures related to
consumer deposit accounts;
• the Expedited Funds Availability Act, Check Clearing for the 21st Century Act and Regulation CC issued by the
Federal Reserve Bank (“FRB”), which relate to the availability of deposit funds to consumers;
• the Right to Financial Privacy Act, which imposes a duty to maintain the confidentiality of consumer financial records
and prescribes procedures for complying with federal government requests for and subpoenas of financial records;
• the Electronic Funds Transfer Act and Regulation E issued by the CFPB, which govern automated transfers of funds
and consumers’ rights related thereto;
• the Telephone Consumer Protection Act, which governs communication methods that may be used to contact
customers; and
• the Gramm-Leach-Bliley Act, which governs the ability of financial institutions to disclose nonpublic information
about consumers to non-affiliated third-parties.