Banking Groups Reiterate Opposition to CFPB Generic Clearance Request

By Sarah Borchersen-Keto, CCH Washington News Bureau, Contributing Author, the CCH Federal Banking Law Reporter and Bank Digest.

The American Bankers Association and the Consumer Bankers Association have reiterated concerns about the Consumer Financial Protection Bureau’s request to the Office of Management and Budget for a generic clearance for the collection of information on compliance costs and other effects of regulations.

In a recent letter to the CFPB and OMB, the associations noted the “inappropriateness” of the CFPB request as the information and data collected “will have significant substantive and policy implications.”

The associations contend that once approval for a generic clearance is granted, the individual collections that fall within it are reviewed on an expedited basis and generally are not required to undergo further public comment. “The public will only have been afforded the opportunity to comment on one information collection vehicle – a clear denial of the opportunity for meaningful comment,” the associations said. Furthermore, the lost opportunity for public review “will close the door to public input that could minimize the burden of the information collection itself,” they said.

The ABA and CBA noted that while the CFPB has promised informal opportunities for input by selected entities, “that may not be adequately representative of overall public interest.” The groups reiterated their request for the CFPB to work with OMB and industry representatives “to develop an alternative, more streamlined approach to collect information that will ensure the opportunity for public comment on specific instruments.”