US OCC Proposes New Appeals Board

The Office of the Comptroller of the Currency (OCC) has proposed a new appeals process that would allow banks and trusts to challenge supervisory decisions, as reported by the American Banker.

The proposal would establish an appeals board and apply a “de novo” standard of review, meaning cases would be reconsidered without deferring to examiners’ prior findings. Under the proposal, the appeals board would comprise the OCC’s Chief National Bank Examiner alongside two appointees. It may also include the Ombudsman or the Chief Counsel, but the OCC said it is open to input regarding the structure of the board. The agency said the changes are “intended to enhance the independence and efficiency of the appeals function” and address concerns that the current system discourages challenges.  

The OCC noted that between 2017 and 2024, it sided with examiners in all 12 supervisory appeals related to fair lending.  “This lack of a clear standard ... has led to a perception that filing a formal appeal is not worth the resources and risk of retaliation because there is a low chance of success,” the OCC acknowledged. “This is especially true in regard to certain types of challenges, such as those regarding referrals to the Department of Housing and Urban Development and the Department of Justice of potential fair lending violations."

The proposal would also strengthen anti-retaliation protections and expand the Ombudsman’s role as a neutral party to which supervised firms can raise concerns.