Comments on CFPB Reg. CC, No-Action Letter proposals due in Feb.

January 30, 2019

Comments on the Consumer Financial Protection Bureau’s (CFPB) proposed Regulation CC amendments and No-Action Letter policy are due in February. CUNA will submit comment letters on both proposals.

The CFPB’s proposed amendments to Regulation CC, which implements the Expedited Funds Availability (EFA) Act, contains a calculation methodology for implementing a statutory requirement to adjust the dollar amounts in the EFA Act every five years by the aggregate annual percentage increase in the Consumer Price Index for Wage Earners and Clerical Workers (CPI-W) rounded to the nearest multiple of $25.

It would also implement the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155) amendments to the EFA Act, which include extending coverage to American Samoa, the Commonwealth of the Northern Mariana Islands and Guam, and would make certain other technical amendments.

Comments are due by Feb. 8.

The No-Action Letter proposal follows CUNA efforts for the CFPB to revise its current policy. A bureau no-action letter signifies that bureau staff has no present intent to recommend initiation of supervisory or enforcement action against a particular product or service from a particular entity.

The proposal invites feedback on the No-Action Letter policy and bureau efforts to streamline the process for applying for one.

It also proposes to create a CFPB Product Sandbox, which would include No-Action Letter relief, and two additional forms of relief:

  • Approvals by order under three statutory safe harbor provisions (approval relief); and
  • Exemptions by order (i) from statutory provisions (as well as provisions of regulations implementing the statute in question) under statutory exemption-by-order provisions (statutory exemptions); or (ii) from regulatory provisions that do not mirror statutory provisions under rulemaking authority or other general authority (regulatory exemptions).

In keeping with the ‘‘sandbox’’ concept, approval relief and exemption relief would be provided for a limited period of time. The CFPB expects that two years would be appropriate in most cases.

Comments are due by Feb. 11.