By Andrew A. Turner, J.D.
The Consumer Financial Protection Bureau’s latest update to its rulemaking agenda adds credit reporting and student loan servicing as long-term initiatives (beyond Nov. 2016). Upcoming in 2016, rulemaking proposals are expected on arbitration, payday lending, overdraft programs on checking accounts, and debt collection, while final rules are anticipated on prepaid cards and mortgage servicing.
Long-term actions. Intending to provide a framework to improve student loan servicing, the CFPB will be consider proposing rules for specific acts or practices and consumer disclosures. For credit reporting, the CFPB will consider rulemaking on the accuracy of credit reports, including the processes for resolving consumer disputes.
Arbitration. The CFPB is beginning a process to propose rules to prevent companies from using arbitration agreements for credit cards, deposit accounts, and payday loans to bar class actions lawsuits. The CFPB is also considering requirements to monitor the fairness of arbitration proceedings.
Payday lending. Proposed rulemaking is expected in first quarter 2016 to address concerns that payday and auto title lending products are being offered without assessment of the consumer’s ability to repay. Payment collection practices are another area of concern.
Prepaid accounts. A final rule instituting consumer protections for prepaid accounts similar to those that exist for debit and payroll cards is expected in spring 2016.
Overdraft. As part of the process of preparing a proposed rulemaking for overdraft programs on checking accounts, the CFPB is conducting additional research and has begun consumer testing initiatives related to the opt-in process.
Debt collection. While conducting research for a rulemaking proposal on debt collection activities, the CFPB is running consumer testing initiatives to determine what information would be useful for consumers to have about debt collection and their debts and how that information should be provided.
Larger participants and non-depository lender registration. The CFPB expects to begin development of rules to define larger participants in markets for consumer installment loans and vehicle title loans. In addition, consideration will be given to requiring registration of lenders in these markets or other non-depository lenders.
Women owned, minority-owned, and small businesses data collection. Initial steps are planned towards development of rules for requiring financial institutions to report information about lending to women-owned, minority-owned, and small businesses.
Mortgage servicing. A final rule is expected in mid-2016 on mortgage servicing rules for enhanced loss mitigation requirements.
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