Five Big Items on CFPB's Short-Term To-Do List
April 11, 2016 7:30 AM
The Consumer Financial Protection Bureau's agenda is so packed it's no wonder that when Director Richard Cordray testifies on Capitol Hill, he has to tackle a huge array of subjects. Following are areas where the agency has proposals or final rules outstanding:
Payday Lending
Arguably the most eagerly awaited proposal from the CFPB is its one to rein in payday lending. The agency unveiled an outline of the plan a year ago, but it has yet to release a formal proposal. Cordray said last week that the agency is "on the verge" of releasing the plan.
Prepaid Cards
The CFPB issued a proposal on prepaid cards in December 2014 that received an unexpectedly high amount of criticism from consumers, who argue it should be tougher. But industry groups said it went too far and treated different kinds of cards the same. Lawmakers have been lobbying the CFPB in recent weeks over the issue as a final rule is expected soon.
Arbitration Rules
The CFPB released a plan in October that would eliminate arbitration clauses in product agreements that prevent consumers from banding together in litigation. Banks and Republican lawmakers argue the plan is a gift to trial lawyers, but Cordray has defended it, arguing that arbitration clauses can give banks a "free pass" against class actions.
Debt Collection
The CFPB released an advanced notice of proposed rulemaking in 2013 on debt collection, but has not yet put forth a comprehensive proposal. Debt collection is one of the biggest sources of complaints to the agency and the CFPB has been analyzing a study it completed on the issue. A formal proposal is expected this year.
Overdraft
The CFPB is widely expected to release a proposal targeting overdraft fees this year. Consumers are already required to opt-in to overdraft programs for debit cards and ATMs, but the agency has signaled consumers remain confused about the issue. A recent blog post noted that banks made $11 billion in overdraft fees in 2015.
