In This Report - Banco Mercantil

Rules governing the integrity of a consumer’s credit report and the protection against ID
Theft were also strengthened by new regulations issued under the Fair Credit Reporting Act.
If credit scoring is used as a factor in a credit decision, banks are now required to provide
additional information about pricing practices for consumer and mortgage loans, as well as
credit cards. Disclosures must be provided to explain how the interest rate on a loan may be
higher or lower depending on the credit score. Also, in addition to contacting the credit
reporting agency, a customer may now report errors on a credit report directly to a bank. In
turn, the bank must research and resolve the customer’s claim in a timely manner, as well as
correct the customer’s credit report.
2010 Compliance Focus
The Compliance Department responded to these changes, as well as others, by developing
and delivering employee training; implementing new disclosures and forms; revising credit
approval requirements; reviewing products and marketing materials; and collaborating with
internal departments to modify specific operating procedures.
As regulations continue to take shape to protect consumers, the Compliance Department
will remain well-informed and proactive. Actions will be taken immediately to not only comply
with changes, but to also educate and inform both customers and employees on the reasons
for the changes and the benefits. Communication will continue to be an integral component
to the execution of programs, plans and policies that will protect the Bank’s reputation and
the interests of its customers, employees and shareholders.
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Mercantil Commercebank