CBA Releases Policy Recommendations Ahead of CFPB Semi-Annual Address to Congress

November 27, 2023

WASHINGTON, D.C. – The Consumer Bankers Association (CBA) today sent letters to the Senate Banking Committee and House Financial Services Committee ahead of the Consumer Financial Protection’s Bureau’s (CFPB) semi-annual report to Congress later this week outlining legislative and regulatory suggestions to lawmakers and the Bureau for the purpose of ensuring consumers continue to have access to highly regulated financial products that enable them to achieve their financial goals.

The CFPB’s semi-annual address to Congress comes at a pivotal time when America’s leading banks are contending with heightened regulatory uncertainty, driven primarily from a CFPB policy agenda that frequently mischaracterizes its own data regarding industry practices and seeks minimal input from the industry it is responsible for overseeing.

“The Bureau frequently establishes new requirements for regulated depository institutions outside of the rulemaking process required by the Administrative Procedure Act (APA) though advisory opinions and press statements that do not have the same weight or clarity as a rule and leave banks seeking clarity to ensure they remain compliant to avoid negative repercussions, such as costly enforcement actions.”

CBA and its members fully support the mission of the CFPB and the need for a responsible regulator tasked with providing every consumer the protections they deserve. Recognizing the agency’s important role in promoting a fair, transparent, and competitive marketplace, the letters go on to say:

“The consumer financial services marketplace thrives when the regulators overseeing the institutions that provide products and services to consumers and small businesses issue policies that are developed through a transparent and consistent regulatory process. Further, consumers are best protected when financial products and services are subject to consistent consumer protections, not frequent changes to regulation due to one particular ideological view.”

What We’re Advocating For

  • Reject the imminent credit card late fee rule – The CFPB should be required to conduct a rigorous cost-benefit analysis of this proposed rule and how it would affect (1) the cost and availability of credit, particularly with respect to non-prime borrowers, (2) the safety and soundness of credit card issuers, and (3) the use of risk-based pricing.
  • Broaden the scope of Section 1033 of the Dodd-Frank Act – The Bureau's final Section 1033 rule should broaden the coverage of data providers, address liability more robustly, and meaningfully sunset the practice of screen scraping.
  • Reject the Bureau’s imminent undoing of bank-led innovation of overdraft products – The CFPB is expected to force banks into a one-size-fits-all approach when it comes to overdraft products, which would undo years of bank progress as they have rigorously competed and innovated for in order to meet customer needs with this critical tool.
  • Withdraw the Section 1034(c) of the Dodd-Frank Act Advisory Opinion – The Bureau should withdraw its advisory opinion and propose it as a formal rulemaking pursuant to the APA.
  • Extend the implementation timeline for Section 1071 of the Dodd-Frank Act – The CFPB should provide at least 36 months for small business lenders to comply with the final rule.

To read the full letters sent to the House and Senate, click HERE.

CBA Advocacy

  • To read CBA’s regulatory and legislative recommendations from the CFPB’s semi-annual address to Congress in June 2023, click HERE.
  • To read CBA’s blog post that sets the record straight on the CFPB’s misguided credit card late fee proposal, click HERE.
  • To read CBA’s response to the CFPB’s Section 1033 notice of proposed rulemaking, click HERE.
  • To read more about how bank-led innovations reflect the century-long commitment to meet consumer demands, click HERE.
  • To read CBA’s comment letter regarding Section 1034(c) of the Dodd-Frank Act, click HERE.
  • To read CBA’s response to the CFPB’s final rule regarding Section 1071 of the Dodd-Frank Act, click HERE.