Your Weekly Financial e-Update: CFPB Expands UDAAP, GOP to Repeal Prepaid-Card Rule, & More!
By: Carly Souther
CFPB Expands Scope of UDAAP
The Consumer Financial Protection Bureau (CFPB) ordered Mastercard and UniRush to pay $13 million for breakdowns related to prepaid-cards that resulted in tens of thousands of consumers without access to their money. The CFPB claims consumers were given inaccurate account information and were not provided with adequate customer service after the breakdowns. The order says the companies engaged in "unfair acts or practices" by failing to conduct adequate testing and preparation for the conversion of UniRush's RushCard prepaid card onto the Mastercard technology platform. By suggesting there is no room for error in handling customer accounts, the CFPB is further expanding the scope of what makes an act or practice "unfair."
GOP Move to Repeal Prepaid-Card Rule
Republican lawmakers filed identical resolutions in the Senate and the House to repeal a CFPB rule before it can go into effect in October. The rule would provide safeguards for people who use prepaid cards, which are similar to debit cards but are preloaded with money by the cardholder. The rule would required prepaid-card companies to disclose hidden fees and protect against loss, theft, and unauthorized charges, as well as require providers to limit overdraft fees.
Acting SEC Chief Takes on Dodd-Frank
Michael Piwowar, the Acting Securities and Exchange Commission (SEC) Chairman, has twice moved to reconsider contentious rules put in place in 2016 under the Dodd-Frank financial reform law. Piwowar wants to examine whether "relief is needed" for the rule requiring public companies to disclose the amount of money their CEOs make, and how much more that salary is than the salary of an average employee.
Learn More About Final Dodd-Frank Rules:
- CFPB Diversity Self Assessment Standards & What They Mean For Your Institution. Fri., 17 Feb. at 11AM ET, Speaker: Brandy Lalla
FTC Report on Regulation B/ ECOA
The Federal Trade Commission (FTC) furnished the Consumer Financial Protection Bureau (CFPB) withinformation on the FTC's 2016 enforcement activities related to compliance with Regulation B and the Equal Credit Opportunity Act (ECOA). As related to Regulation B, the FTC engaged in research and policy development in several areas of fair lending. The FTC proposed an auto survey to learn about consumers' experiences in buying and financing vehicles at dealerships. The FTC issued a report for institutions to use to ensure that the use of big data analytics does not include exclusionary or discriminatory practices. Likewise, the FTC engaged in educational outreach to consumers and businesses on issues such as credit transactions to which Regulation B applies.
Learn More about the ECOA:
- Hitting the ECOA Bullseye: All Arrows Point to Regulation B. Tues., 21 Feb. at 2PM ET, Speakers: Tom Stahl & Greer Lang
CFPB Sues Student Loan Company
The CFPB brought suit against Navient Corp, a student lender, for "abusive acts" in violation of Section 1031 of the Dodd-Frank Act. The CFPB alleges that Navient takes unreasonable advantage of student-borrowers in default, by steering those in default into forbearance agreements, rather than advising them about alternate repayment plans based on the student-borrower's income.
Learn More About Bank Liability for Student Loans:
- Bank Liability for Student Loan Fraud: When the School Can Shift the Blame to the Lender. Tues., 14 Feb. at 11AM ET, Speaker: Briane Pagel
Your Week Ahead: Congressional Financial Hearings
Tuesday, 14 February
Senate Banking Committee: Hearing to examine the Semiannual Monetary Policy Report to the Congress, featuring Janet Yellen, 10 a.m.
Wednesday, 15 February
House Financial Services Committee: Hearing entitled "Monetary Policy and the State of the Economy", featuring Janet Yellen, 10 a.m.