📅 2026 Update: Changes in Banking and Consumer Finance Law

Since the original article on the Glass-Steagall Act was written, several significant changes have occurred in U.S. banking and consumer finance laws. Key updates include adjustments to the Community Reinvestment Act (CRA) and changes in reporting requirements for small businesses. These updates impact how consumers interact with financial institutions.

The earlier article continues further down the page, detailing the Glass-Steagall Act and its implications. Here are some recent changes that matter for personal and consumer finance law.

🏦 Community Reinvestment Act Updates

On March 21, 2024, federal bank regulatory agencies extended the applicability date of certain provisions in the CRA final rule from April 1, 2024, to January 1, 2026. This change aligns facility-based assessment areas and public file requirements with other parts of the 2023 CRA final rule. This extension affects how banks are evaluated on their lending practices in low- and moderate-income areas.

💰 CRA Asset-Size Thresholds Adjusted

As of December 30, 2025, the Federal Reserve Board and the Federal Deposit Insurance Corporation updated the asset-size thresholds for small and intermediate small banks under the CRA. A small bank now has less than $1.649 billion in assets, while an intermediate small bank has assets ranging from $412 million to $1.649 billion. These new thresholds are effective from January 1, 2026, through December 31, 2026.

📜 End of Beneficial Ownership Reporting

On August 11, 2026, the Financial Crimes Enforcement Network (FinCEN) permanently removed the requirement for U.S. companies to report beneficial ownership information under the Corporate Transparency Act. This change, effective August 14, 2026, simplifies compliance for many small businesses, easing their administrative burden.

🏦 Credit Unions and Beneficial Ownership Relief

FinCEN also issued an Exceptive Order on February 13, 2026, which lifted the requirement for credit unions to identify and verify beneficial ownership information for business customers at each new account opening. Credit unions must now verify beneficial owners only when a legal entity customer first opens an account or if there are concerns about previously obtained information.

📌 Key Points Summary

  • 📅 CRA final rule applicability extended to January 1, 2026.
  • 💰 CRA asset-size thresholds updated for small and intermediate small banks.
  • 📜 Beneficial ownership reporting requirement ended for small businesses.
  • 🏦 Credit unions now have relaxed rules on beneficial ownership verification.
  • 📊 Changes impact consumer finance and banking interactions.

💡 Tips for Navigating Consumer Finance Laws

Review the details of your own financial situation with your attorney. Understanding how the latest changes affect you is essential for making informed decisions.

🏦 Understand the CRA Provisions

Stay informed about the Community Reinvestment Act provisions. Knowing how these changes affect banks' lending practices can help you understand your rights as a consumer.

💼 Check Bank Asset Sizes

When choosing a bank, check if it falls under the small or intermediate small bank classification based on the new asset-size thresholds. This classification can influence the bank's commitment to serving your community.

📋 Simplified Reporting for Businesses

If you run a small business, be aware that you no longer need to report beneficial ownership information. This change can reduce your regulatory burden and save you time.

🏦 Credit Union Account Openings

If you're a member of a credit union, remember that they are now only required to verify beneficial ownership when you first open an account. This could streamline your account opening process.

📊 Stay Updated on Compliance Rules

Financial institutions are required to maintain effective anti-money laundering programs. Keeping up with these compliance rules can inform how you engage with your bank or credit union.

🏆 Credit Repair Services Ranked by User Reviews (2026)

This section highlights services related to credit reporting and repair, important factors in personal finance. The rankings are based on Trustpilot data as of October 2026. Remember that scores can fluctuate as more customers add their experiences.

Star ratings are a useful but incomplete measure of service quality.

🥇 1. CreditRepair.com

CreditRepair.com has been rated 1.2. It is known for offering credit repair services and helping improve credit scores. However, numerous complaints about billing practices and service quality have raised concerns among users.

🥈 2. Experian

Experian holds a score of 4.1. This service is recognized for credit reporting, credit monitoring, and credit score improvement. While many users appreciate its offerings, some have reported difficulties reaching customer support, which can hinder the user experience.

🆓 Free Government Help for Credit Issues

The National Credit Union Administration (NCUA) offers a Share Insurance Estimator to help consumers understand how share insurance rules apply to their accounts. The IRS provides guidance on setting up direct deposit for tax refunds and how to split those refunds across multiple accounts. Utilizing these resources can help you manage your finances better.

🔎 Considerations When Choosing Credit Services

  • 🔍 Check customer reviews and ratings.
  • 🏦 Look for transparency in pricing and services offered.
  • 📞 Assess customer support availability and responsiveness.
  • 📊 Review success stories and case studies.
  • 💼 Compare features that align with your financial goals.

❓ Frequently Asked Questions

❓ What is the Community Reinvestment Act (CRA)?

The Community Reinvestment Act aims to encourage banks to meet the credit needs of the communities they serve, especially low- and moderate-income areas.

📈 How have CRA asset-size thresholds changed?

As of January 1, 2026, a small bank is defined as having assets under $1.649 billion, while an intermediate small bank has assets between $412 million and $1.649 billion.

📋 What is the impact of ending beneficial ownership reporting?

The end of beneficial ownership reporting simplifies compliance for many small businesses, reducing administrative tasks and making it easier to operate.

🏦 How do credit unions verify beneficial ownership now?

Credit unions must verify beneficial ownership only when a legal entity customer first opens an account or if there are doubts about previously obtained information.

💰 What are the penalties under the Bank Secrecy Act (BSA)?

Civil penalties for BSA violations can be substantial, especially for individuals with prior violations. The Secretary of the Treasury may impose significant penalties based on the violation's severity.

🏦 How can I set up direct deposit for my tax refund?

Taxpayers can have their federal income tax refunds directly deposited into one, two, or three accounts at U.S. financial institutions. To split a refund, use IRS Form 8888.

⚖️ Recent Cases Related to Banking and Consumer Finance

Recent court rulings have addressed various aspects of banking regulations and consumer rights. These rulings connect to the ongoing discussions surrounding the Glass-Steagall Act and its implications for modern finance.

For further updates, you can explore more rulings on the news page.

End of October 2026 Update





What is the Glass Steagall Act?

• The Glass Steagall Act (also referred to as the Banking Act) of 1932 and 1933 was a federal law that formally established the Federal Deposit Insurance Corporation in the United States. Through this creation, numerous banking reforms were affirmed, some of which, were designed to control speculation. The majority of the act was repealed in 1999; however, the provision, particularly the regulatory powers of the Federal Reserve and the governing bodies are still debated today. 

• The Glass Steagall Act is encompassed by two separate laws; the first Glass Steagall Act of 1932 was enacted to curb deflation, expand the Federal Reserve’s ability to offer rediscounts on a number of asset types, including commercial paper and government bonds. The second Glass Steagall Act, known as the Banking Act, was passed in response to the collapse of a large portion of the commercial banking system in the United States. 

• The Glass Steagall Act, in total, introduced the separation of bank types based on their business model (commercial vs. investment banking). Furthermore, the Glass Steagall Act founded the Federal Deposit Insurance Corporation; the premiere government agency for insuring bank deposits. 

Glass Steagall Act


Why was the Glass Steagall Act passed?

• The act of rediscounting was a way of providing finances to a bank or other financial institution. During the 1800s and early 1900s, banks offered loans to their customers by discounting customer notes; these notes formalized an agreement where the borrower promised to pay a certain amount at a specified, future date. This system; however, ultimately failed when the Great Depression rocked the American Economy. 

• The Glass Steagall Act was a fundamental part of Franklin D. Roosevelt’s first 100 days in office. The Great Depression and the complimentary bank failures served as the primary impetus to passing the Glass Steagall Act. The majority of commercial banks, as a result of the rediscounting system, participated in faulty investment strategies. During this time, banks were taking obscene risks and investing depositor assets in unstable assets. 

• The Glass Steagall Act attempted to correct these wild practices by separating commercial banks from investment banks and by placing stringent restrictions on their financial maneuvers. After a year, under the Glass Steagall Act, banks would have to choose whether to be an investment or commercial bank, in which case only 10% of their revenue could come from investment securities. 

The Creation of the FDIC:

• In short, the Glass Steagall Act restricted commercial bank investment strategies to re-instill confidence in America’s lending and savings system. The Glass Steagall Act, to bolster this initiative, created the FDIC. The Federal Deposit Insurance Corporation insures checking and safety deposits up to $100,000 per depositor for each member bank. At the time, this was a monumental creation, for it protected depositors from losing their money in the event of a run on a bank. 


Repeal of the Glass Steagall Act:

• The Glass-Steagall Act was, for the most part, repealed in 1999. The Gramm-Leach-Bliley Act, which was pushed through Congress, made it possible for commercial and investment banks to merge together. Additionally, a subsequent act allowed banks to underwrite insurance.