CFPB Proposes to Temporarily Suspend Submissions of Quarterly Credit Card Agreements; NCUA to Host FOM Webinar
Written by Brandy Bruyere, Regulatory Compliance Counsel
Proposed Suspension of Credit Card Agreement Submissions. On February 24th, the Consumer Financial Protection Bureau (CFPB) issued a proposal to temporarily suspend the Truth in Lending ActâÂÂs (TILA) requirement that credit unions submit credit card agreements to the CFPB on a quarterly basis. See 12 C.F.R. 1026.58(c). Under this rule, credit unions must provide the CFPB with their credit card agreements every quarter unless the card agreement continues to be offered and has not been amended. Keep in mind that the rule contains exceptions for certain private label cards and those credit unions with fewer than 10,000 open credit card accounts, and the proposal would not impact these exceptions.
The CFPBâÂÂs current process for enforcing this rule requires credit unions to submit card agreements to the CFPB by email, which can be âÂÂcumbersomeâ and make it difficult for a credit union to track its prior submissions. CFPB staff then âÂÂmanually review, catalog, and upload new or revised agreementsâ to the bureauâÂÂs website which can take several months. The proposal would suspend the reporting requirements under section 1026.58(c) until April 30, 2016, when credit unions would have to submit agreements from the first quarter of 2016. During the suspension, the CFPB plans to work on âÂÂdevelop[ing] a more streamlined and automated electronic submission system.âÂÂ
The CFPB intends to create and test a new platform that would be faster and easier for credit unions to use for submissions as well as improve the bureau staffâÂÂs own management of the sizeable workload that is created by this rule. The CFPB expects an improved process would improve the bureauâÂÂs ability to keep its database updated and accurate. In the interim, the CFPB would collect card agreements from large financial institutionsâ public disclosures made in accordance with 12 C.F.R. 1026.58(d) and upload these agreements to its own public database.
However, this proposal would not impact the ruleâÂÂs requirements for a credit union to post its credit card agreements publically on the credit unionâÂÂs website. NAFCU plans to submit comments supporting the suspension of this rule, and would like to hear from our members regarding any issues or concerns with the current submission process. Comments are due to the CFPB by March 13th, so please share your experiences by contacting Alicia Nealon, NAFCU Director of Regulatory Affairs, at anealon@nafcu.org.
NCUA Field of Membership (FOM) Webinar. On Wednesday, March 25th at 2 PM, NCUA will host a free webinar on âÂÂSuccessful Strategies for Field-of-Membership Expansion.â  Topics will include using data to maximize membership growth, business plan templates to assist with applying for FOM expansion, and a review of NCUAâÂÂs FOM internet application. A federal credit union will also participate and share its experiences with FOM expansion. To participate in this webinar, register here.