Compliance

CFPB withdraws proposal to bar certain NSF fees, but warns it may try again

NEWS:  The CFPB has withdrawn a proposed rule that would have barred credit unions and other financial institutions from charging nonsufficient funds (NSF) fees when a consumer’s payment transaction is declined instantaneously or near-instantaneously. The rule would have applied to transactions involving debit cards, ATMs, or certain person-to-person payment apps, but it would not have covered NSF fees charged for check and ACH transactions. This Compliance Courier has more details about what was in the proposed rule.

NCUA joins CFPB in warning against "unfair" overdraft & NSF fees

NEWS:  It’s hardly news that federal regulators, especially the Consumer Financial Protection Bureau (CFPB), take a dim view of overdraft and non-sufficient funds (NSF) fees charged by credit unions and other financial institutions. The CFPB has repeatedly called them “junk fees,” and a new CFPB rule, which is set to take effect this fall, will strictly cap such fees – unless the courts block the rule.

CFPB bars lenders from considering medical debt; lawsuit already filed

NEWS:  This week, the CFPB issued a final rule to amend Reg. V (which implements the Fair Credit Reporting Act or FCRA). The rule will prohibit creditors (including credit unions) from using medical debt information to determine credit eligibility, with only limited exceptions. It will also bar consumer reporting agencies from including medical debt in credit reports.

League joins "friend of the court" brief opposing OD rule

NEWS:  Yesterday, The League joined 17 other U.S. credit union leagues and associations in filing an “amicus” brief (i.e., a “friend of the court” brief) in support of America’s Credit Unions’ federal litigation against the CFPB’s new overdraft fee rule.

The same day the CFPB released its rule in December, America’s Credit Unions filed a lawsuit in the U.S. District Court of the Southern District of Mississippi to stop it. It was joined by the Consumer Bankers Association, American Bankers Association, and Mississippi Bankers Association, along with several banks. Our amicus brief is designed to help those parties persuade the court to issue an injunction and stop the CFPB’s rule.