The CFPB has amended Regulation Z to remove the requirement that a card issuer must consider the independent ability to pay of an applicant who is 21 or older.  The final rule, which will be effective upon publication in the Federal Register, retains the independent ability-to-pay requirement for applicants under the age of 21. … Continue Reading

Sixteen industry trade groups, including the American Bankers Association, the American Financial Services Association and the Mortgage Bankers Association, have written to Director Cordray urging the CFPB to convene a Small Business Regulatory Enforcement Fairness Act (SBREFA) panel on the proposed ability-to-repay/qualified mortgage rule.  As we reported, on May 31, the CFPB reopened the comment period on the proposed rule issued by the Fed.… Continue Reading

Testimony to Congress earlier this week from Gail Hillebrand, CFPB Associate Director for Consumer Education and Engagement, seems to suggest a way for card issuers to deal with concerns about the Reg. Z rule that the Fed adopted to implement the CARD Act’s ability-to-pay requirement, at least while the CFPB considers whether to change the rule.… Continue Reading

 It’s not often that Barney Frank agrees with the American Bankers Association but, when it comes to Regulation Z’s ability to pay rule for credit cards, it seems that Representative Frank now thinks the ABA got it right and the Fed got it wrong. The Reg. Z rule, adopted by the Fed in final form in March 2011 to implement the Credit CARD Act and effective October 1, requires issuers to consider an applicant’s independent ability to pay, regardless of the applicant’s age.… Continue Reading