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Interchange fees are an extremely controversial issue. CBA strongly opposes any government intrusion into the market pricing of interchange fees. The debit and credit card markets are extremely competitive at the card issuer, merchant bank and card network levels. Governmental intrusion into the setting of interchange fees is wholly unwarranted and, like other government intrusion into properly functioning markets, will have undesirable and unintended consequences. CBA believes the ensuing negative effects on consumers of the debit interchange regulation will highlight the harm of governmental price fixing, making it difficult to produce any successful legislative or regulatory efforts that seek to do further harm to interchange rates.
- January 17, 2014January 17, 2014CFPB Extends Comment Period for Debt Collection ANPR On Tuesday, November 12, 2013, the CFPB issued an Advance Notice of Proposed Rulemaking (ANPR) on debt collection practices, which included a 90-day comment period ending February 10, 2014. On January 14, 2014, the Bureau published a notice in the Federal Register announcing an extension of the comment period to February 28, 2014. The proposed...January 17, 2014Washington, D.C. (January 17, 2014) – Richard Hunt, president and CEO of the Consumer Bankers Association, issued the following statement in response to today’s hearing on the debit interchange case before a three-judge panel in D.C. Circuit Court of Appeals: “Today’s hearing was a positive step in preserving the current allowable interchange rate. While we still believe this rate is too low,...December 20, 2013CFPB and DOJ Issue Enforcement Action for Auto Lending Practices On Friday, December 20, 2013, the CFPB and DOJ issued enforcement action against Ally Bank for auto lending practices, specifically discrimination in connection with dealer reserve compensation. Ally will pay $80 million to consumers, pay to hire a settlement administrator to distribute funds to victims, and monitor dealer reserve...December 16, 2013Amici respectfully submit that their motion for leave to participate in oral argument should be granted. Appellees’ arguments in opposition are meritless. 1. Appellees (“the merchants”) do not dispute that amici’s members have a direct, unique stake in this litigation. Opp. 1-2. Nor could the merchants dispute the point. Amici’s members are the very parties regulated by Regulation II. The...December 6, 2013CFPB Rulemaking Agenda The CFPB posted a semi-annual update to its rulemaking agenda on December 4, 2013. They continue to work on rulemaking as mandated by Dodd-Frank and are looking to expand their focus on consumer financial products and services. In 2014, the CFPB expects to begin work on mortgage issues, including preservation of credit in “rural or underserved” areas, and implementing...December 6, 2013CFPB Releases Final Nonbank Student Loan Servicing Rule On Tuesday, December 3, 2013, the CFPB released its final larger participant rule for nonbank student loan servicers. CBA commented on the proposed rule when it was issued in March, supporting of the Bureau’s approach to supervising nonbanks and the rule’s inclusion of federal student loans. The Bureau oversees student loan servicing for...October 25, 2013CFPB Issues Remittance Exam Procedures On Tuesday, October 22, 2013, the CFPB announced the publication of exam procedures and a small entity guide for the remittance rules, which take effect on October 28, 2013. The CFPB also announced the launch of an eRegulations tool, a web-based version of the Bureau’s rules. Regulation E, including the remittance rule, is the first regulation to be included...September 20, 2013CFPB Finalizes Additional Changes to Mortgage Rules On Friday, September 13, 2013, the CFPB finalized several amendments to the mortgage lending and servicing rules released earlier this year. The Bureau announced the proposed amendments in June in response to questions and suggestions from industry participants. The rules go into effect in January of 2014. The amendments are as follows:...September 20, 2013Washington, D.C. (September 20, 2013) – Today Richard Hunt, President and CEO of the Consumer Bankers Association, released the following statement regarding the case of NACS v. Board of Governors of the Federal Reserve System in respect to debit interchange. District Court Judge Richard Leon issued an order yesterday, granting the parties’ request to stay his July 31, 2013 decision pending an...