Dodd-Frank News Center

OIG finds ‘medium’ risk level in CFPB's travel card program

This story appeared in Bank Digest.  

The Office of Inspector General for the Consumer Financial Protection Bureau and the Federal Reserve Board has conducted a risk assessment of the Bureau's travel card program for fiscal year 2018 to determine the necessary frequency and scope of travel card audits.

The specific objective of the report was to analyze the risks of illegal, improper, or erroneous purchases and payments associated with the Bureau's travel card program in order to determine an overall risk level for the program. The scope of the report included travel card purchases from Oct. 1, 2017, through Sept. 30, 2018.

The OIG said the results of the risk assessment show that the risk of illegal, improper, or erroneous use in the Bureau's travel card program is "medium," which means that while illegal, improper, or erroneous use is likely to occur, such an occurrence would be expected to have a limited effect on current operations and long-term objectives.

Democrats write to CFPB opposing changes to payday loan rule

This story appeared in Bank Digest.                                   

Senators Jeff Merkley (D-Ore), Dick Durbin (D-Ill), and Sherrod Brown (D-Ohio) have led a group of 47 senators in writing to Consumer Financial Protection Bureau Director Kathleen Kraninger to oppose the CFPB's proposal to revise its payday loan rule to eliminate underwriting requirements.

In their letter, the senators said, "Currently under the Payday Rule, lenders will be required to verify a borrower's income, debts, and other spending in order to assess a borrower's ability to remain current and repay credit, and provide an affordable repayment plan for borrowers who take out more than three loans in succession."

They went on to say, "Repealing this rule provides a green light to the payday lending industry to prey on vulnerable American consumers. In drafting these devastating changes to the Payday Rule, the CFPB is ignoring one of the most fundamental principles of consumer finance--an individual should not be offered a predatory loan that they cannot pay back." The senators asked for answers to several questions regarding the effect of the proposed changes.

Perdue sponsors bill to subject CFPB to congressional appropriations process

This story appeared in Bank Digest.                                   

Senator David Perdue (R-Ga) has led 17 other Republican senators in sponsoring the CFPB Accountability Act of 2019, which would subject the Consumer Financial Protection Bureau to the annual congressional appropriations process to provide greater oversight of the Bureau. According to Perdue, the Dodd-Frank Act "gave the CFPB unprecedented power with no Congressional oversight whatsoever." He added, "The American people deserve a closer look at the CFPB to understand how its actions will impact consumers."

New protections for servicemembers highlighted in CFPB blog post

This story appeared in Bank Digest.                                   

A Consumer Financial Protection Bureau blog post discusses new legal protections for servicemembers and veterans and when they go into effect. Some took effect last year.

Specifically, the authors discuss: (1) new requirements for Department of Veterans Affairs loan refinancing; (2) foreclosure protections for active-duty servicemembers and those recently separated from active duty; (3) greater credit reporting protections for veterans on certain medical debts; and (4) free electronic credit monitoring for active duty servicemembers.

CFPB moves to eliminate payday lenders' underwriting obligations

This story appeared in Bank Digest.                                   

The Consumer Financial Protection Bureau is proposing amendments to its 2017 final rule governing "Payday, Vehicle Title, and Certain High-Cost Installment Loans" that would allow lenders to extend short-term, high-cost loans to consumers without needing to satisfy regulatory underwriting requirements. In addition to proposing to eliminate the underwriting requirements, the Bureau is proposing to extend the Aug. 19, 2019, compliance date of the rule's mandatory underwriting provisions until Nov. 19, 2020, which would enable the CFPB to eliminate the requirements before they take effect.

Senate Banking Committee Ranking Member Sherrod Brown (D-Ohio) issued a statement saying, "Eliminating these common sense protections will result in millions of hardworking families trapped in a cycle of debt and poverty." Similarly, House Financial Services Committee Chairwoman Maxine Waters (D-Calif) said she was "deeply troubled by the Consumer Bureau's proposal to gut a much-needed rule that would have reined in payday lenders and ensure consumers can afford to pay off their loans."

But House Financial Services Committee Ranking Member Patrick McHenry (R-NC) said the Bureau's "announcement on an updated payday lending rule and extended comment period will allow all stakeholders another chance to weigh in and establish new underwriting criteria. Most importantly, it will give consumers the opportunity to make their own decisions on credit availability needs for themselves and their families."

CFPB proposes reinstating, revising consumer research information collection

This story appeared in Bank Digest.

The CFPB is proposing to reinstate, with change, a previously approved information collection entitled “Generic Information Collection Plan for Studies of Consumers Using Controlled Trials in Field and Economic Laboratory Settings.” Under this generic information collection plan, the Bureau intends to collect data through controlled trials in field and economic laboratory settings; and use this research for developmental and informative purposes to increase its understanding of consumer credit markets and household financial decision-making. In consultation with the Office of Management and Budget, the CFPB is proposing to modify this generic information collection plan to provide for public notice and opportunity to comment to the OMB for each request submitted under this generic plan. Written comments on this proposal must be received by April 8, 2019.

CFPB issues reference chart for reporting 2019 HMDA data

This story appeared in Bank Digest.

The CFPB has issued a reference chart regarding data required to be collected in 2019 under the Home Mortgage Disclosure Act, which is implemented by Regulation C. Specifically, the chart is intended to be used as a reference tool for data points required to be collected, recorded, and reported under Reg. C, as amended by the HMDA Rules issued on Oct. 15, 2015, and Aug. 24, 2017, and by Section 104(a) of the Economic Growth, Regulatory Relief, and Consumer Protection Act, as implemented and clarified by the interpretive and procedural rule issued on Aug. 31, 2018.

CFPB proposes debt collection disclosure information collection

This story appeared in Bank Digest.                                   

The Consumer Financial Protection Bureau is proposing a new information collection entitled "Debt Collection Quantitative Disclosure Testing." The CFPB is seeking Office of Management and Budget approval to conduct a web survey of 8,000 individuals as part of the Bureau's research on debt collection disclosures. The survey will explore consumer comprehension and decision making in response to debt collection disclosure forms, according to the Bureau.

The CFPB previously published a 60-day Federal Register notice on this proposal on June 5, 2017, as well as a 30-day notice on Nov. 14, 2017, but the latter request was withdrawn after submission to the OMB. The Bureau is now republishing a 30-day notice for this collection and resubmitting it to the OMB. Written comments on the current notice must be received by March 6, 2019.

 

CFPB complaint snapshot focuses on mortgage complaints

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau has released its latest complaint snapshot, which provides an overview of trends in consumer complaints from November 2016 through October 2018, with a focus on mortgage complaints. According to a CFPB blog post, during the period covered by the report, approximately 11 percent of complaints received by the Bureau were about mortgages.

According to the post, "Most mortgage complaints were about 'trouble during payment process' (42 percent) and 'struggling to pay mortgage' (36 percent)."

CFPB issues Request for Information on consumer credit card market

This story appeared in Bank Digest.                       

The Consumer Financial Protection Bureau has issued a Request for Information regarding a number of aspects of the consumer credit card market. The Bureau said it was requesting this information in connection with a review of the consumer credit card market it is required to conduct under the Credit Card Accountability Responsibility and Disclosure Act of 2009. Comments must be received by May 1, 2019.