CFPB Resource Center
On July 21, 2011, the Consumer Financial Protection Bureau (CFPB), an agency with unprecedented power and authority to regulate the market for consumer financial products, opened its doors for business.
Because of our focus and expertise on retail banking products and services, CBA is well positioned to be your industry resource on the CFPB and will regularly update this page as the rulemaking process unfolds. In addition, our insights and analysis on CFPB-related issues, along with the latest news and information, will provide you with the necessary tools to navigate this new regulatory environment, so please visit often.
November 14, 2014
CFPB Hosts Field Hearing on Prepaid Cards; Releases Proposed Rule
On Thursday, November 13, 2014, the CFPB, at a field hearing
in Wilmington, DE, released its proposed rule on prepaid products. The
hearing included opening remarks from CFPB Director Richard Cordray, a
panel of consumer and industry representatives, and concluded with a
question and answer session with the public.
prepaid accounts under the Electronic Fund Transfer Act, we are
proposing to give consumers the basic protections – including safety of
the funds – they have come to expect when they pull a debit card out of
their wallet or shop online with it. All prepaid consumers would receive
the same basic protections as long as they register the card with the
institution that provided it," Director Cordray said in his remarks.
Major points from the CFPB at the field hearing included:
the panel discussion, consumer groups generally favored the proposal as
a positive step forward for consumers. However, they believe overdraft
and FDIC pass-through insurance need improvement. The consumer groups
appeared to disagree with the CFPB's proposal for allowing certain
overdraft features. They also strongly suggested that FDIC insurance of
the funds be mandatory. The Pew Charitable Trust advocated for their
lengthy model prepaid disclosures, as Pew believes the proposed
pre-purchase disclosures do not provide enough information for quality
- Prepaid products are used primarily by vulnerable populations, predominantly the unbanked and underbanked;
proposal's scope goes beyond general purpose reloadable prepaid cards
and includes other prepaid products, such as payroll cards, and
E-products like mobile wallets or PayPal, even when no physical card is
- Issuers must post agreements online and with the CFPB in order to give the public "the ability to size them up;"
- The CFPB believes overdraft is impractical in the context of prepaid products.
Industry panelists were generally
supportive of the proposal, but stressed special attention should be
paid to the details in order to protect innovation and access to the
traditional banking system provided by prepaid cards. The panelists also
agreed the application of Regulation E guidelines are appropriate, and
consumer issues will be better served with a transparent and level
playing field; nearly all current prepaid issuers are already providing
In response to the proposal, CBA President and CEO Richard Hunt issued a statement supporting the proposal with minor exceptions to ensure prepaid cards remain affordable and accessible.
CBA Submits CRA Comment Letter
On Monday, November 10, 2014, CBA submitted comments
to the FDIC, OCC and the Federal Reserve Board regarding the proposed
revisions to the Community Reinvestment Act Q&A, the vehicle
collectively used by the agencies to interpret regulations.
its comments, CBA supported the expansion of consideration of
alternative delivery channels in the Service Test, as a greater
recognition of the expanded role played by such channels in providing
services to low and moderate income individuals. At the same time, CBA
stressed the value of retaining branch location for the identification
of the assessment area of traditional banks.
CBA applauded the
additional guidance given throughout the Q&A, while stressing the
importance of examples being non-exclusive, terms being used
consistently, and flexibility being accorded wherever possible.
comments emphasized the importance of examiner training in fully
understanding bank performance and obtaining the full measure of the
proposed Q&A revisions.
CBA will continue to monitor the issue and keep members informed.
CBA Sends Cyber Letter to Capitol Hill
On Wednesday, November 12, 2014, CBA and other trades sent a joint letter
to Congressional Leadership and all Members of the U.S. House and
Senate correcting misleading statements made in a Thursday, November 6,
sent by elements of the retail industry to Congressional Leadership.
CBA's letter also stresses the need for retailers to provide better data
"National consumer notification alone – as
advocated by the November 6th letter – will not solve this problem," CBA
stated. "It is only when coupled with the development of strong
internal data protection standards and robust oversight that the retail
community will find itself in a better position to protect consumers and
their confidential personal financial information from criminal abuse."
OCC Fines Banks for Exchange Manipulation
Wednesday, November 12, 2014, the OCC announced it had fined three
banks a total of $950 million for alleged manipulation of certain
foreign exchange rates. "These enforcement actions were taken because
several large banks permitted an environment to develop in which
unscrupulous traders discussed manipulating foreign exchange markets,"
Comptroller of the Currency Thomas Curry said in a statement.
"Our action today, and those of our fellow regulatory agencies here in
the United States, in the United Kingdom and in Europe, sends a very
strong signal that such misconduct will not be tolerated."
CBA Default Management Committee Meets with OCC
Friday, November 12, 2014, representatives from the CBA Default
Management Committee (DMC) met with the OCC to discuss its Monday,
August 4, 2014 bulletin on debt sales. While the committee appreciated
the OCC's efforts to provide guidance to the industry on debt sale
practices, many DMC members were left confused by certain aspects of the
bulletin. The meeting with the OCC was an opportunity for CBA members
to voice concerns and for the agency to provide additional clarity to
Comments on CBA TCPA Petition Due Monday
for CBA's Telephone Consumer Protection Act (TCPA) petition are due
Monday, November 17, 2014. CBA's petition asks the Federal
Communications Commission (FCC) to define "called party" as "intended
recipient" for purposes of the TCPA's prior consent requirement. CBA
appreciates member support to help guide the FCC towards a much-needed
common-sense solution. For question on this issue, contact Kate Larson.
Federal Reserve Release Annual Index Amounts for Reserve Requirement
On Thursday, November 13, 2014, the Federal Reserve released
annual indexing for the reserve requirement exemption amount, and the
low reserve tranche, which are used to determine banks' reserve
For net transaction accounts in 2015, the
first $14.5 million will be exempt from reserve requirements, which is
an increase from the 2014 threshold of $13.3 million. A three percent
reserve ratio will be assessed on net transaction accounts over $14.5
million up to and including $103.6 million, which is up from $89.0
million in 2014. A 10 percent reserve ratio will be assessed on net
transaction accounts in excess of $103.6 million.
Loretta Lynch Nominated as U.S. Attorney General
Saturday, November 8, 2014, President Barack Obama appointed Loretta
Lynch to be the next Attorney General of the United States. Lynch is
currently in her second stint as U.S. Attorney in Brooklyn, for which
she was appointed by the President in 2010 and also served under
President Bill Clinton from 1999 to 2001.
"It's pretty hard to be more qualified for this job than Loretta," said President Obama in a statement.
"Throughout her 30-year career, she has distinguished herself as tough,
as fair, an independent lawyer who has twice headed one of the most
prominent U.S. Attorney's offices in the country. She has spent years in
the trenches as a prosecutor, aggressively fighting terrorism,
financial fraud, cybercrime, all while vigorously defending civil
If confirmed by the Senate, Lynch would replace
Attorney General Eric Holder who recently announced he is stepping down
from the position.
Prudential Regulators Concerned For Credit Risk, Leveraged Lending
On Friday, November 7, 2014, the Federal Reserve, FDIC, and OCC released a statement
entitled: "Credit Risk in the Shared National Credit Portfolio is High;
Leveraged Lending Remains a Concern." In their Shared National Credits
(SNC) review, which is conducted annually, the agencies found leveraged
lending volume remains well above pre-crisis levels. The report also
noted credit quality of these assets was down after seeing three
consecutive years of improvement following the financial crisis.
agencies also noted examiners have observed risk management weaknesses
at several institutions engaged in leveraged lending. Regulators plan to
monitor leveraged loans more closely and are working to conduct
White House Announces Appointment for Under Secretary for Domestic Finance
Wednesday, November 12, 2014, the White House announced the appointment
of Antonio Weiss to serve as the Under Secretary for Domestic Finance
at the U.S Department of Treasury. Weiss currently is the Global Head of
Investment Banking for Lazard, and has been with the firm since 2009.
If confirmed by the Senate, he will lead the Treasury Department on
fiscal policy such as raising the debt ceiling, government assets and
liabilities, and related economic matters. Weiss would replace Mary J.
Miller, who announced this summer her plans to step down from the post.
November 14, 2014
November 7, 2014
October 31, 2014
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