Sept. 26 CFPB Recent Updates
Published SEP 24, 2024
CFPB Seeks Comment on Applications to Become a Recognized Open Banking Standard-Setter
the CFPB released a webpage that makes available for public comment applications to become a recognized standard setter under the Personal Financial Data Rights Rule. In June 2024, the CFPB finalized a portion of the Personal Financial Data Rights Proposed Rule. That final rule defines criteria for becoming a recognized standard setter. Additionally, that final rule identifies that conformance with standards adopted and maintained by a recognized standard setter may indicate compliance for certain substantive provisions of the Personal Financial Data Rights Proposed Rule.
As part of the final rule issued in June, the CFPB also provided application procedures for those seeking to become recognized standard setters. The CFPB stated it may publish applications and seek comment on those applications. This webpage will house the published applications and provide the applicable comment deadlines for the applications.
To that end, the CFPB has now posted the first application for public comment. Comments on that application are due October 16, 2024. Any future applications for public comment will be posted on this webpage.
You can access the application and the Recognized Open Banking Standard-Setter Application webpage here: https://www.consumerfinance.gov/personal-financial-data-rights/applications-for-open-banking-standard-setter-recognition/.
CFPB Report Highlights Challenges Facing Servicemembers and Veterans with Student Loans
The Consumer Financial Protection Bureau (CFPB) released its annual report on the top financial concerns facing servicemembers, veterans, and military families. The report finds that active duty and veteran students are encountering many financial challenges, including difficulties getting help from student loan servicers and transcript withholding by colleges and universities as a means to collect a debt or disputed fees. The report also identifies problems experienced by the military community with other financial products, such as an increase in reports of scams targeting older veterans.
Servicemembers, veterans, and their families have submitted more than 407,000 consumer complaints since the CFPB opened its doors in 2011. In 2023, they submitted nearly 84,600 complaints to the CFPB, a 27 percent increase from 2022 and a 98 percent increase from 2021. The number of complaints filed by servicemembers increased across all major consumer financial products, including credit or consumer reporting, debt collection, credit cards, checking or savings accounts, and mortgages.
Today’s report identifies several areas of complaints from servicemembers related to student loans. In October 2023, after a three year pause, payments for federally owned student loans restarted. The return to repayment was followed by an increase in student loan complaints from many consumers, including servicemembers. For some servicemembers, particularly those stationed abroad or deployed, these challenges were exacerbated. Read more
CFPB Proposes Amendment to Remittance Transfer Rule
tThe Consumer Financial Protection Bureau (CFPB) issued a proposed rule with a narrow amendment to disclosure requirements for certain international money transfers, or remittances. The proposed amendment would provide consumers clearer information about the types of inquiries that may be better handled by their remittance company before contacting the CFPB or the relevant state regulator.
The Electronic Fund Transfer Act and Regulation E require remittance companies to give senders a disclosure at the time of payment, including on a receipt. This disclosure must include contact information for both state regulators and the CFPB.
Today’s proposed rule would amend certain disclosures to clarify that consumers should contact their remittance company for issues specific to their money transfer. The proposal can potentially save consumers time by resolving their inquiries more quickly. Additionally, it may reduce the number of inquiries sent to states and the CFPB that would be more appropriately addressed initially by the providers themselves.
Read the proposed rule, Remittance Transfers Under the Electronic Fund Transfer Act (Regulation E).
The CFPB encourages comments from the public and all interested stakeholders. The proposed rule will be published in the Federal Register, and the public will have until November 4, 2024, to submit their comments. Read more
Published
CFPB Proposes Narrow Amendment to Remittance Transfer Disclosure Requirements
The Consumer Financial Protection Bureau (CFPB) issued a proposed rule with a narrow amendment to disclosure requirements for certain international money transfers, or remittances. The proposed amendment would provide consumers clearer information about the types of inquiries that may be better handled by their remittance company before contacting the CFPB or the relevant state regulator.
The Electronic Fund Transfer Act and Regulation E require remittance companies to give senders a disclosure at the time of payment, including on a receipt. This disclosure must include contact information for both state regulators and the CFPB.
Today’s proposed rule would amend certain disclosures to clarify that consumers should contact their remittance company for issues specific to their money transfer. The proposal can potentially save consumers time by resolving their inquiries more quickly. Additionally, it may reduce the number of inquiries sent to states and the CFPB that would be more appropriately addressed initially by the providers themselves.
Read the proposed rule, Remittance Transfers Under the Electronic Fund Transfer Act (Regulation E).
The CFPB encourages comments from the public and all interested stakeholders. The proposed rule will be published in the Federal Register, and the public will have until November 4, 2024, to submit their comments. Read more