Consumer Financial Protection Bureau Richard Cordray has given notice that for the rest of 2016 and throughout 2017, we can expect to see “quite active” rulemaking. Cordray told members of the Consumer Banking Association that the bureau will level the playing field in terms of financial services companies with “a fresh approach that benefits both consumers and providers.” Other rulemaking areas on the agenda include prepaid accounts, overdraft fees, debt collection practices, arbitration clauses, and discrimination in auto lending.
Upcoming rulemaking. In his prepared remarks for the CBA event, Cordray provided some insight into the bureau’s rulemaking intentions for the rest of the year and into next year. In the next couple of months, according to the director, the CFPB will issue a notice of proposed rulemaking on small-dollar loans such as payday loans, car title loans, and certain installment loans. The bureau also intends to issue a notice of proposed rulemaking on the use of arbitration clauses in consumer finance contracts. The CFPB is “looking into” the incidence and transparency of overdraft fees, including the opt-in process for overdraft coverage of electronic transactions, and giving “careful consideration to when and how overdraft fees are charged and how well consumers can anticipate those charges.” In addition, Cordray said that the bureau remains committed to improve the credit reporting market, concentrating not only on the credit reporting companies themselves but also on the data furnishers and the credit scoring companies.
Debt collection. As expected, the CFPB includes debt collection practices in its upcoming rulemaking, calling debt collection “still the most-complained-about activity affecting consumers in the financial marketplace.” Rulemaking would include the practices of third-party debt collectors, first-party creditors, debt sellers, and debt buyers.
Small business lending data. Cordray told CBA members that the CFPB has begun work on another project required by Congress, which is to establish a rule governing the collection and publication of data on small business lending as well as determining how to organize and manage that data collection and publication. The bureau is “moving forward” with the project now that it has updated the framework for collecting similar data on mortgage lending under the Home Mortgage Disclosure Act.
Auto lending practices. Partnering with the Department of Justice, the CFPB is continuing to pursue its project “to identify and stamp out discrimination in auto lending practices.” Cordray noted, “Our recent resolutions with two of the largest captive auto lenders have introduced new constraints on the extent to which interest rates can be marked up and point a way forward to addressing disparities in the rates consumers pay for these loans.”
Companies: Consumer Bankers Association
MainStory: TopStory CFPB ChecksElectronicTransfers DebtCollection EqualCreditOpportunity FairCreditReporting Loans
Interested in submitting an article?
Submit your information to us today!Learn More