The Federal Reserve advances supervision, community reinvestment, and research to increase understanding of the impacts of financial services policies and practices on consumers and communities.
Additionally, banks are required to provide customers clear and accurate information about services, such as savings accounts, loans and credit cards. For example, a bank’s brochure for a savings account should include information on any minimum balance required, monthly service fee and the average percentage yield. In addition, the Truth in Lending Act requires banks to disclose the finance charge and the annual percentage rate so that a consumer can compare the prices of credit from different sources. It also limits liability on lost or stolen credit cards. These laws ensure that consumers and banks make decisions based on the same information.
Community Reinvestment Act
The Community Reinvestment Act (CRA), enacted in 1977, requires the Federal Reserve and other federal banking regulators to encourage financial institutions to help meet the credit needs of the communities in which they do business, including low- and moderate-income (LMI) neighborhoods.
The Federal Reserve supervises state member banks--or, state-chartered banks that have applied for and been accepted to be part of the Federal Reserve System--for CRA compliance.
To carry out its role, the Federal Reserve:
- Examines state member banks to evaluate and rate their performance under the CRA;
- Considers banks' CRA performance in context with other supervisory information when analyzing External Linkapplications for mergers, acquisitions, and branch openings; and
- Shares information about External Linkcommunity development techniques with bankers and the public
Consumer Help
If consumers have a complaint about a financial institution, they can contact the Federal Reserve. Together with the twelve Federal Reserve Banks, the Board of Governors can answer questions about banking practices and investigate complaints about specific banks under the Fed’s supervisory jurisdiction. For more information, visit External LinkFederal Reserve Consumer Help.
Additional Resources
External LinkFederal Reserve Board Mortgage and Foreclosure Resources
