Upcoming CFPB comment period deadlines, proposed updates to TRID rule, and more in this issue of CFPB Digest

4 min

Upcoming CFPB Comment Period Deadlines

A busy spring in the CFPB's rulemaking office has resulted in a slate of comment period deadlines in late summer and fall of 2016. Proposed rules with upcoming comment period closure dates include:

  • Regulation P – August 10, 2016: Comments due in response to a proposed rule to amend Regulation P, requiring institutions to provide customers with annual privacy notices, in which an exception to this requirement would be available to those financial institutions that meet certain conditions.
  • Arbitration Agreements – August 22, 2016: Comments due in response to a proposed rule to regulate arbitration provisions of consumer financial products and services and establish 12 CFR part 1040, containing regulations governing two aspects of consumer finance dispute resolution. For Venable's prior discussion of this proposed rule, please see the alert on the issuance of the proposed rule and our June 15, 2015 webinar discussion of the proposal.
  • Small-Dollar Lending – October 7, 2016: Comments due in response to a proposed rule addressing payday, vehicle title, and other high-cost installment loans and establishing 12 CFR 1041. For Venable's prior discussion of this proposed rule, please see our Small-Dollar Loan Proposed Rule FAQs.
  • TRID Amendments – October 18, 2016: Comments due in response to a proposed rule updating the CFPB's TILA-RESPA Integrated Disclosure (TRID) rule. Highlights of the proposed updates are discussed here.

CFPB Proposes Updates to TRID Rule

The CFPB has looped back to the TILA-RESPA Integrated Disclosure rule (TRID), also known as Know Before You Owe, which has been effective since October 3, 2015. The CFPB has now published a proposed rule to formalize guidance under TRID and "provide greater clarity and certainty" to the rule's requirements.

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How to Prepare for and Survive a CFPB Examination

If you're a compliance officer at a consumer financial services company, the two words most likely to keep you awake at night are "CFPB" and "examination." As the Consumer Financial Protection Bureau (CFPB or Bureau) celebrates its fifth anniversary on July 21, 2016, the Bureau has settled into its role as the primary supervisor of consumer financial products and services. For compliance officers, the prospect of a CFPB examination can be daunting: voluminous document requests, several months of onsite visits, and the potential for remediation and penalties in the event of significant identified deficiencies.

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CFPB Targets Redlining and Other Fair Lending Issues

On June 29, 2016 the CFPB and the Department of Justice (DOJ) announced a joint action against BancorpSouth Bank for allegedly engaging in racially discriminatory lending practices. CFPB's complaint alleges that BancorpSouth violated both the Equal Credit Opportunity Act, which prohibits lenders from discriminating on the basis of race, and the Fair Housing Act, which prohibits discrimination in residential mortgage lending. The proposed consent order, filed simultaneously with the complaint and subject to court approval, would require BancorpSouth to pay a total of $10.6 million in remedial payments and penalties. Additionally, BancorpSouth would be required to open at least one new branch in a high-minority neighborhood, offer subsidized credit to African American consumers who were denied mortgage loans, and implement policies to promote equal access to credit.

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Credit Cards Under the CFPB Spotlight in June 2016

As of July 1, 2016, the Bureau has handled approximately 97,100 credit card-related complaints. Consumer complaints span the breadth of the credit extension process; key complaints include perceived unfairness in credit decisions, payment confusion, inadequate fee disclosure, and misleading rewards programs.

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CFPB's Spotlight on Consumer Loans in May 2016

On June 28, 2016, the CFPB released its monthly consumer complaints snapshot, which focused on consumer loans and complaints coming out of Arkansas. Each month the CFPB releases a report focused on particular products and geographic areas to direct the public's attention to different segments of the industries the CFPB oversees and to note how these industries affect different parts of the country.

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Upcoming Event:

"Lead Gen Legal Responsibility and Accountability: A Sit Down" at the 2016 LeadsCon New York Conference (August 23, 2016): Jonathan Pompan will moderate a panel of regulators discussing regulatory, enforcement, and compliance issues in lead generation.

Recent Events:

"What Do Service Providers Expect From Lenders and What Do Lenders Expect From Service Providers?" for the Online Lenders Alliance Compliance University (July 27, 2016): Jonathan Pompan participated on a panel for compliance officers discussing covered person and service provider liabilities.

"Recent Developments in FTC and CFPB Data Security Enforcement" for the American Bar Association Consumer Protection Antitrust Section (July 19, 2016): Ariel Wolf joined a panel that covered FTC and CFPB cybersecurity and data privacy enforcement actions and discussed recent cases and guidance, best practices, and future trends.

"CFPB Enforcement 2016" for Bloomberg BNA (June 10, 2016): Allyson Baker spoke on a panel addressing the key areas that have been the focus of CFPB enforcement initiatives. They also discussed the ways in which the agency is seeking to expand the reach of federal law and its jurisdiction.