Krasimira Nevenova / AdobeStockOn May 14, the CFPB published a Federal Register notice withdrawing its proposed rule requiring nonbanks to report the existence of an order and file annual compliance reports where such nonbanks were subject to certain final public orders. As previously covered by InfoBytes, this rule would have created a registry requiring nonbanks to report the existence of such public orders to assist the public and enforcement agencies in identifying “repeat offenders.” However, the proposed rule would not apply to insured depository institutions or insured credit unions. In the proposal, the CFPB expressed concern that the costs the rule imposes on regulated entities would be passed on to consumers, and such additional cost may not merit the desired benefits.
The Bureau plans to make this rule effective immediately when the final rule is published; however, the CFPB seeks comment on whether there should be a delayed effective date. The comment period ends on June 13.
On May 14, the CFPB published a Federal Register notice withdrawing its proposed rule on the Procedures for Supervisory Designation Proceedings. These amendments were each codified in 12 C.F.R. 1091. As previously covered by InfoBytes, the Bureau published one of these amendments changing how it would procedurally designate nonbanks for supervision. Another one of these amendments provided for the public release of final decisions and orders. The CFPB expressed concern regarding the reputational risk caused by release of a final decision and that the same could pressure entities to consent to supervisory designation to avoid the release of a public decision when they may otherwise have good arguments as to why the designation is unwarranted.
The Bureau’s three amendments occurred on April 29, 2022, Nov. 21, 2022, and April 23, 2024, and the Bureau now seeks public input on its most recent proposed rule. The comment period ends on June 13.
On May 15, the CFPB published a Federal Register notice withdrawing its proposed interpretive rule on EFTs titled “Electronic Fund Transfers Through Accounts Established Primarily for Personal, Family, or Household Purposes Using Emerging Payment Mechanisms.” As previously covered by InfoBytes, this interpretive rule would have broadened the scope of the EFTA to encompass a broad range of digital assets, including cryptocurrency accounts, credit card rewards accounts, and video game accounts by expanding the definition of “funds” and “account.” The CFPB now withdraws this interpretive rule “because further rulemaking action with respect to this proposal does not align with current agency needs, priorities, or objectives.”
