May 27, 2014

CFPB focused on debt collection, payday, prepaid

May 28, 2014 – CFPB's rulemaking agenda for the spring focuses on possible amendments to Home Mortgage Disclosure Act rules and potential rulemaking on debt collection complaints, payday lending, prepaid cards, and privacy disclosures.

In addition to looking at potential amendments to HMDA, CFPB said it would continue to "work with stakeholders to address questions that have arisen with regard to the 2013 mortgage rules, including issuing additional clarifications and amendments as warranted."

Regarding debt collection, the bureau said its advance notice of proposed rulemaking on the subject last fall led to consumers sending in more than 30,000 complaints. Payday lending and prepaid cards are also subjects CFPB has been testing the waters for: it recently released a Supervisory Highlights report on its progress getting remediation to victims of payday lending scams, and it has been testing model disclosure forms for prepaid cards in Los Angeles this spring while requesting consumer comments on what disclosures are most helpful.

Finally, the agency also said it would focus on the question of eliminating required annual privacy notices from financial institutions when there has been no change in policy – the agency has a proposal on this topic out now – and on the definition of "larger participants," from the agency's perspective, in the auto lending market.

NAFCU is closely following CFPB's oversight of financial institution and nonbank activities and watching for any potential rulemaking that could affect credit unions.