The American Bankers Association (ABA) along with 50 state bankers associations, the DC Bankers Association and Puerto Rico Bankers Association sent a letter (the “ABA Letter”) to the Federal Reserve “in strong opposition to the Federal Reserve’s misguided proposal to reduce the regulated interchange cap under Regulation II, and to ask that the proposal be withdrawn pending a rigorous study of this proposal’s impacts and the cumulative impacts of the tsunami of newly finalized and pending regulations from the banking agencies.”… Continue Reading
Democratic Senators continue to pressure Zelle and other payment apps to change fraud policies
On February 15, 2024, Senators Sherrod Brown (D-OH), Jack Reed (D-RI) and Elizabeth Warren (D-MA) sent a letter to Zelle seeking clarification of its reimbursement policy for victims of imposter scams and urging Zelle to publicize its fraud policies to consumers and clarify whether all participating banks must reimburse eligible victims.… Continue Reading
CBA launches overdraftfacts.com to provide insights to policymakers
On January 8, 2024, the Consumer Bankers Association (CBA) announced the launch of a new microsite, overdraftfacts.com, to demonstrate the value overdraft services provide to consumers, highlight bank-driven overdraft and non-sufficient funds (NSF) innovations and reforms that have significantly reduced consumer costs, and serve as a resource for policymakers. The microsite also includes statements from regulators, legislators, scholars, thought leaders, and the media; input about the CFPB’s planned NSF and overdraft fee rulemaking; and related industry articles.… Continue Reading
ABA Critical of HMDA Rule in Comments to Treasury Secretary
Based on the President’s executive order 13772 on The Core Principles for Regulating the United States Financial System, the American Bankers Association (ABA) submitted a white paper to Treasury Secretary Mnuchin that criticizes the revised Home Mortgage Disclosure Act (HMDA) rule adopted by the CFPB.
The executive order requires the Treasury Secretary, based on the core principles laid out in the executive order, to identify the federal laws that promote and inhibit the regulation of the United States financial system. … Continue Reading
CFPB’s prepaid account rule faces further attacks
Since the CFPB issued its final rule for general purpose prepaid accounts on October 5, 2016, it has faced challenges from Congress and criticism from industry participants. In recognition of the numerous compliance difficulties posed by the rule, the CFPB has indicated that it is amenable to making substantive changes to the rule, and on March 9, the CFPB proposed to delay the rule’s implementation date in response to feedback from the prepaid industry.… Continue Reading
Director Cordray focuses on mortgage rules in remarks to American Bankers Association
A substantial portion of Director Cordray’s remarks yesterday at the American Bankers Association’s Annual Convention in New Orleans was directed at justifying the Bureau’s decision not to delay the January 2014 effective dates of the new mortgage rules. Mr. Cordray reminded bankers that if the CFPB had failed to complete the rules, most of Title XIV of Dodd-Frank “would have taken effect in its own right in January 2013” and they “already would have been living under those provisions for quite some time with no guidance to resolve ambiguities and subject to whatever interpretations the courts might eventually arrive at through litigation.” … Continue Reading
ABA makes suggestions to CFPB for overdraft study
The American Bankers Association has sent a letter to the CFPB responding to the CFPB’s June 2013 white paper reporting its initial data findings on overdraft programs. When the paper was issued, we observed that regulation by the CFPB seemed likely and commented that it would require considerable thought and creativity for the CFPB to appropriately protect consumers without depriving them of valuable overdraft services or unduly impairing bank revenues.… Continue Reading
Prominent industry trade groups nix CFPB’s proposed telephone survey of consumers
As part of its on-going study of consumer arbitration mandated by the Dodd-Frank Act, the CFPB announced on June 7, 2013 that it is seeking funding from the Office of Management and Budget to undertake a telephone survey of 1,000 credit card holders to ascertain their awareness of and perceptions regarding the arbitration provisions in their contracts.… Continue Reading
Tunstall to Address American Bankers Association on UDAAP Issues
The American Bankers Association has invited me to speak at their series of telephone briefings on Unfair, Deceptive or Abusive Acts or Practices, or UDAAP. I will be a panelist for two of the briefings—”UDAAP Issues in Operations and Product Design” on July 10, 2012, and “Social Media and the UDAAP Impact” on July 24, 2012.… Continue Reading
American Bankers Association weighs in on proposed policy for credit card complaint data
On January 30, 2012, the American Bankers Association delivered a comment letter to the CFPB in which it expressed strong disagreement with the CFPB’s proposed policy statement on “Disclosure of Certain Credit Card Complaint Data“. The ABA expressed concern that the complaint data will not help and may actually mislead consumers because it is “incomplete, unrepresentative, and unverified.”… Continue Reading