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CFPB News and Updates - 12/14/2012

CFPB May Allow Financial Services Companies to Float Trial Disclosures

The Consumer Financial Protection Bureau (CFPB) is considering whether to allow credit unions and other financial services companies to conduct trial consumer disclosure programs on a case-by-case basis.  Click here for the CFPB press release issued on December 13, 2012.

In announcing the bureau’s request for public comment on the proposed policy change, CFPB Director Richard Cordray said the innovation would allow companies to conduct “real-world trials of disclosure alternatives.” Click here for the proposal.

If adopted, the policy would fall under the auspices of the CFPB’s Project Catalyst; an initiative announced a month ago and intended to encourage consumer-friendly innovation in markets for consumer financial products and services.  The Dodd-Frank Wall Street Reform and Consumer Protection Act, which created the CFPB, authorized the CFPB to facilitate innovation and to approve trial disclosure programs.

The proposal would enable the CFPB to approve individual companies, on a case-by-case basis, for limited-time exemptions from current federal disclosure laws in order for those companies to research and test informative, cost-effective disclosures. 

The companies involved would then share the results of their trial disclosure with the CFPB. The CFPB would use that information to improve its disclosure rules and model forms. Public comments will be accepted by the CFPB for 60 days after the proposed policy is published in the Federal Register, which likely will be within the next week or two.

CUNA Plans More Outreach to Credit Unions on CFPB International Remittances Rule
Later this month or possibly in early January, 2013. the Consumer Financial Protection Bureau (CFPB) will issue its new proposal on international remittance transfers. The Credit Union National Associaiton (CUNA) is developing a new survey to accompany their updated Comment Call once the proposal is issued. CUNA is also planning other outreach, in coordination with leagues, regarding the proposal to address continuing concerns with the rule and will be addressing these efforts next month.

The rule was adopted earlier this year and would have taken effect February 7, 2013. However, after meeting with CUNA’s Remittances Working Group, and based on concerns raised by CUNA, leagues and credit unions, CFPB Director Richard Cordray last month announced the agency is revisiting three issues under the rule.

  • —Incorrect Account Numbers. If a sender, such as a credit union, could show that the consumer provided the wrong account number, the credit union would not be liable for misdirected funds if the credit union’s efforts to recover the fund were unsuccessful.
  • —Third-Party Fees and Foreign Taxes. The CFPB is planning to allow senders to base fee disclosures on published schedules. It will also provide further guidance on foreign tax disclosures.
  • Regional and Local Taxes. The CFPB will clarify that disclosures of national taxes that apply to International remittance transfers do not include foreign state and local taxes.

The CFPB has indicated that it will delay the effective date of the international remittance rule until 90 days after the revised rule is adopted next year, expected sometime in the spring.

Chart on CFPB Rulemaking: Updated 12/14/12
Credit union representatives now have access to a chart  that highlights various rulemaking projects that are being undertaken by the Consumer Financial Protection Bureau (CFPB). The projects are required by the Dodd-Frank Act. The chart covers topics like Reg Z, Appraisals, Reg B and more.   Click here to view the updated chart.

A CUNA username and password are required to access the chart.

CFPB Report on Credit Reporting and Credit Bureaus
The CFPB has released a report on how the nation’s three largest credit bureaus manage consumer data and the credit reporting process.  The report highlights the consumer experience with Equifax, Experian, and TransUnion, which each have more than 200 million files on consumers.  Among other things, the report notes that about 40% of disputes involving credit information are regarding collections.  In addition, the report provided information on inaccuracies in credit files and reports, as well as disputing credit report errors.  


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