The Consumer Financial Protection Bureau (CFPB) announced Wednesday it is rescinding seven policy statements issued last year that provided temporary flexibilities to financial institutions in consumer financial markets including mortgages, credit reporting, credit cards, and prepaid cards. The seven rescissions, effective April 1, provide guidance to financial institutions on complying with their legal and regulatory obligations.
The CFPB is also rescinding its 2018 bulletin on supervisory communications and replacing it with a revised bulletin describing its use of matters requiring attention (MRAs) to effectively convey supervisory expectations.
"It’s disappointing the CFPB chose to rescind several temporary COVID-19 policy statements while the pandemic continues to affect the finances of millions of consumers," said CUNA Chief Advocacy Officer Ryan Donovan. "This kind of unilateral action, taken without the benefit of notice or an opportunity to provide feedback, reduces flexibility and undermines the Bureau's own appeal for service providers to make sizeable accommodations for consumers. Regardless, credit unions will continue to assist members in need as they have done throughout the duration of the pandemic.”
The rescinded policy statements were issued between March 26 through June 3, 2020, and temporarily provided financial institutions with flexibilities regarding certain regulatory filings or compliance with consumer financial laws and regulations.
The rescinded policy statements and MRA Bulletin are:
April 1, 2020 Statement on Supervisory and Enforcement Practices Regarding the Fair Credit Reporting Act and Regulation V in Light of the CARES Act. The rescission leaves intact the section entitled “Furnishing Consumer Information Impacted by COVID-19” which articulates the CFPB’s support for furnishers’ voluntary efforts to provide payment relief and that the CFPB does not intend to cite in examinations or take enforcement actions against those who furnish information to consumer reporting agencies that accurately reflect the payment relief measures they are employing;
Bulletin 2018-01: Changes to Types of Supervisory Communications. The rescinded bulletin is replaced by Bulletin 2021-01 announcing changes to how CFPB examiners articulate supervisory expectations. The new bulletin states that the CFPB will continue to rely on MRAs, explains the circumstances under which it will do so, and announces that the CFPB will discontinue use of Supervisory Recommendations.
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