CFPB: Amendment Proposed to Remittance Transfer Rule
Proposed changes will make it more efficient when consumers have questions Today, the Consumer Financial Protection Bureau (CFPB) issued a proposed rule with a narrow amendment to disclosure requirements for certain international money transfers, or remittances. The proposed amendment would provide consumers clearer information about the types of inquiries that may be better handled by…
CFPB: Action Taken to Stop Banks from Harvesting Overdraft Fees without Consumers’ Consent
Banks have charged overdraft fees for ATM and one-time debit card transactions even though they did not have customers’ documented consent Today, the Consumer Financial Protection Bureau (CFPB) published guidance to help federal and state consumer protection enforcers stop banks from charging overdraft fees based on phantom opt-in agreements. Phantom opt-ins occur when banks claim they have…
Agencies Extend Comment Period on Request for Information on Bank-Fintech Arrangements
The federal bank regulatory agencies announced today that they will extend until October 30, 2024, the comment period on a request for information on bank-fintech arrangements involving banking products and services. The agencies are seeking input on the nature and implications of bank-fintech arrangements and effective risk management practices. Extending the comment period will allow…
Agencies Remind Banks of Potential Risks Associated with Third-Party Deposit Arrangements and Request Additional Information on Bank-Fintech Arrangements
The federal bank regulatory agencies today issued a statement reminding banks of potential risks associated with third-party arrangements to deliver bank deposit products and services. The agencies support responsible innovation and banks engaging in these arrangements in a safe and sound manner and in compliance with applicable law. While these arrangements can provide benefits, supervisory…
OCC: Acting Comptroller Discusses Trends Reshaping Banking
Acting Comptroller of the Currency Michael J. Hsu today discussed three key long-term trends that are reshaping banking in remarks at the Exchequer Club. Mr. Hsu’s written remarks in support of his appearance discussed the increasing number and size of large banks, the complexity of bank-nonbank relationships, and the rise in polarization. The Acting Comptroller…
CFPB: Process Launches to Recognize Open Banking Standards
New rule establishes process for recognizing data sharing standards and prevents dominant incumbents from squelching startups Today, the Consumer Financial Protection Bureau (CFPB) finalized a rule outlining the qualifications to become a recognized industry standard setting body, which can issue standards that companies can use to help them comply with the CFPB’s upcoming Personal Financial…
CFPB: Agency Warns Against Deception in Contract Fine Print
Companies using illegal or unenforceable terms and conditions risk breaking the law The Consumer Financial Protection Bureau (CFPB) today issued a circular warning against the use of unlawful or unenforceable terms and conditions in contracts for consumer financial products or services. Companies use this fine print tactic to try to trick consumers into believing they have given…
OCC: Project REACh 2.0 Launched
The Office of the Comptroller of the Currency (OCC) today announced the launch of REACh 2.0 at its Project REACh Financial Inclusion Summit. Project REACh, the Roundtable for Economic Access and Change, brings together leaders from the banking industry, national civil rights organizations, business, and technology to identify and reduce barriers that prevent full, equal,…
OCC: National Financial Capability Month Celebrated in April
The Office of the Comptroller of the Currency (OCC) supports National Financial Capability Month in April, and encourages national banks and federal savings associations (collectively, banks) to support this annual commemoration by recommitting their focus on improving the financial capability and financial health of their customers. Banks can promote financial capability through high-quality financial literacy…
ABA: ABA & 52 State Bankers Associations Issue Comment Letter to CFPB Explaining that the Market for Overdraft Services is Already Transparent and Competitive
In a detailed comment letter filed today with the Consumer Financial Protection Bureau, the American Bankers Association joined all 52 state bankers associations in explaining why the market for overdraft services is already transparent and competitive, directly challenging the basic premise behind the Bureau’s misguided proposal to impose additional regulation on overdraft protection services. The letter spells…