• What's the CFPB Cooking for the Holidays?
  • March 19, 2015 | Author: Samuel D. Friedman
  • Law Firm: Sirote & Permutt, P.C. - Birmingham Office
  • It truly is the most wonderful time of the year in the South. The air is crisp. The football is good. And, it seems like there is always something cooking. Washington is no different (other than maybe the good football part).

    In a recent article, we discussed what consumer finance companies should be doing to prepare for the 2015 version of the CFPB. Today, we look at the CFPB's upcoming regulatory plans.

    Two weeks ago, the CFPB posted its semi-annual update to its rulemaking agenda. Twice a year the CFPB publishes its agenda and designates rules in various stages as follows: pre-rule, proposed rule, final rule, long term actions, and completed actions. The current status of each of the CFPB's rulemaking is listed online.

    The CFPB agenda update lists regulatory activity in seven areas: Mortgages, Prepaid Cards, Payday Loans, Defining Larger Participants, Debt Collection, Overdraft, and Privacy Disclosures. To summarize key developments:
    • The CFPB is working on new rules dealing with data collection and disclosure revisions for residential mortgages.
    • Last month, the CFPB released a proposed rule that would be applicable to reloadable prepaid cards.
    • The CFPB continues to focus on payday loans and stresses that upcoming rules will be published.
    • Earlier this year, the CFPB proposed a rule defining larger participants in the auto lending industry.
    • The CFPB is evaluating comments it received to the 2013 advanced notice of proposed rulemaking for debt collection. Expect additional activity in 2015.
    • The CFPB is considering new rules dealing with overdrafts that may include new disclosures or address specific acts and practices.
    • In October, the CFPB issued a new rule under the Gramm-Leach-Bliley Act (GLBA) and Regulation P that allows financial institutions to post annual privacy notices on web sites in certain circumstances.
    Finance companies need to pay attention and expect that 2015 will bring new rules and regulations that will directly impact the industry.

    The CFPB certainly seems to have a full plate for the Holidays.