These dates are taken from CFPB Monitor Reports online and updates from AFSPA, CFSA and FISCA reports.
The RFI seeks feedback regarding consumer protection concerns pertaining to (1) loan products outside the scope of the CFPB’s proposed payday loan rule, and (2) “risky” credit practices not covered by the proposed rule.
Last Friday, the CFPB’s proposed payday loan rule and RFI were published in the Federal Register. When they were issued in June, the proposal and RFI had comment deadlines of, respectively, September 14, 2016 and October 14, 2016.
In the version published in the Federal Register, the comment deadline for the payday loan proposal was extended to October 7.
However, October 14 remained the comment deadline for the RFI in the published version.
April 4, 2016
On April 4, at the Practicing Law Institute’s (“PLI”) 21st Annual Consumer Financial Services Institute in Manhattan, Alan Kaplinsky (a co-chair of the institute) moderated a panel entitled “The CFPB Speaks,” where CFPB officials shared their own insights on industry trends on their radar, priorities for the coming years, and views on certain hot-button issues. On the panel from the CFPB were Anthony (“Tony”) Alexis (Assistant Director for Enforcement), Jeffrey Langer (Assistant Director for Installment Lending and Collections Markets), Diane Thompson (Managing Counsel, Office of Regulations), and Peggy Twohig (Assistant Director for Supervision Policy).
During the discussion, the CFPB panelists gave us their hopes on the timetables for new rules that the CFPB is promulgating. They indicated that debt collection rules may be forthcoming in late spring, that the payday lending rules will “hopefully” come out before summer, that the arbitration rules may come out in late spring or early summer, that overdraft rules should be issued in late summer, and that prepaid card rules will be promulgated in “early summer.”
March 8, 2016
According to Politico, “sources familiar with the discussions” have indicated that the CFPB will not issue a proposed rule for payday (and other small-dollar, high-rate) loans until later this Spring., 2016.
In April 2015, the CFPB convened a SBREFA panel to review the proposals it is considering and, in its Fall 2015 rulemaking agenda, the CFPB estimated that it would issue a proposal in February 2016. The CFPB’s Spring 2015 rulemaking agenda had estimated that a proposed rule would be issued “later in 2015.”
Feb. 25, 2016
In remarks to the National Credit Union Association, Director Cordray discussed the proposals the CFPB is considering for small dollar loans. In March 2015, in anticipation of convening a SBREFA panel, the CFPB issued an outline of the proposals it was considering for payday (and other small-dollar, high-rate) loans (“Covered Loans”). For both “short-term” Covered Loans and those considered to be “longer-term” under the proposals, lenders would be allowed to make Covered Loans using either an ability-to-repay (ATR) analysis or without an ATR analysis but subject to significant restrictions.
Director Cordray indicated in his remarks only that the CFPB is continuing to consider giving lenders ATR and non-ATR options and revealed no changes in the CFPB’s approach to Covered Loans from that outlined to the SBREFA panel.
Nov. 23, 2015
The CFPB released its Fall 2015 rulemaking agenda last Friday. The agenda sets the following timetables for key rulemaking initiatives:
Payday and deposit advance loans: In April 2015, the CFPB convened a SBREFA panel to review the proposals it is considering for payday (and other small-dollar, high-rate) loans. The Fall 2015 agenda estimates the issuance of a Notice of Proposed Rulemaking in February 2016 “after additional outreach and analysis.” The Spring 2015 agenda had estimated that a proposed rule would be issued “later in 2015.”
Prepaid financial products: In November 2014, the CFPB issued a proposed rule for prepaid financial products, including general-purpose reloadable prepaid cards and certain digital and mobile wallets. The Fall 2015 agenda estimates the issuance of a final rule in March 2016. The Spring 2015 agenda had estimated that a final rule would be issued in January 2016.
Overdrafts: The CFPB issued a June 2013 white paper and a July 2014 report on checking account overdraft services. In the Fall 2015 agenda, the CFPB states that it “is continuing to engage in additional research and has begun consumer testing initiatives related to the opt-in process.” Although the Spring 2015 agenda had estimated an October 2015 date for further prerule activities, the new agenda moves that date to January 2016.
Debt collection: In November 2013, the CFPB issued an Advance Notice of Proposed Rulemaking concerning debt collection. In the Fall 2015 agenda, the CFPB states that “it is in the process of analyzing responses to a survey seeking information from consumers about their experiences with debt collectors and is engaged in qualitative testing to determine what information would be useful for consumers to have about debt collection and how that information should be provided to them.” The agenda estimates that further prerule activities, which are expected to involve the convening of a SBREFA panel, will occur in February 2016. The CFPB had estimated in its Spring 2015 agenda that further prerule activities would occur in December 2015.
Larger participants: In its Spring 2015 agenda, the CFPB confirmed that is considering a “larger participant” rule for “consumer installment loans and vehicle title loans.” In the new agenda, the CFPB states that it is “also considering whether rules to require registration of these or other non-depository lenders would facilitate supervision, as has been suggested to the Bureau by both consumer advocates and industry groups.” (Pursuant to Dodd-Frank Section 1022, the CFPB is authorized to “prescribe rules regarding registration requirements applicable to a covered person, other than an insured depository institution, insured credit union, or related person.”) While the prior agenda estimated a January 2016 date for prerule activities, the new agenda estimates a September 2016 date.
Small business lending data: Dodd-Frank Section 1071 amended the ECOA to require financial institutions to collect and maintain certain data in connection with credit applications made by women- or minority-owned businesses and small businesses. Such data include the race, sex, and ethnicity of the principal owners of the business. In the Fall 2015 agenda, the CFPB estimates a September 2016 date for prerule activities. (We recently blogged about the CFPB’s efforts to hire an Assistant Director to lead the interdisciplinary team that the CFPB is in the process of standing up to implement Section 1071.)