Newsroom

February 02, 2017

Senators seek to nullify CFPB prepaid rule

A joint resolution that seeks to nullify the CFPB's prepaid rule under the Congressional Review Act was introduced this week by Sen. David Perdue, R-Ga.

Republican Sens. Tom Cotton of Arkansas, Johnny Isakson of Georgia, Ron Johnson of Wisconsin, James Lankford of Oklahoma, Mike Lee of Utah and Mike Rounds of South Dakota are all original cosponsors to the resolution, S.J. Res. 19. The resolution awaits action of the Senate Banking Committee, of which Perdue, Cotton and Rounds are members.

The CFPB's prepaid rule creates new consumer protections for prepaid accounts under Regulations E and Z. The rule goes into effect Oct. 1.

NAFCU is disappointed that credit unions' unique structure and high level of member service were not recognized in this final rule. The rule is detailed in this month's NAFCU Compliance Monitor.

President Donald Trump and congressional Republicans are discussing changes to the Dodd-Frank Act and the CFPB. The U.S. Court of Appeals for the D.C. Circuit ruled in October that CFPB's structure is unconstitutional because it is headed by a single director that can only be removed for cause. NAFCU asked for an immediate moratorium at the bureau on any rulemakings not already implemented.

NAFCU has also urged House and Senate leaders to pass legislation that would create a five-person, bipartisan board to govern the CFPB.