Effective April 1st, the CFPB rescinded several policy statements previously issued in response to the COVID-19 pandemic. It also rescinded a 2018 Bulletin on “Changes to Types of Supervisory Communications”. This bulletin is replaced by Bulletin 2021-01, which indicates the CFPB will continue to use Matters Requiring Attention (MRAs) to communicate expectations and Compliance Management System deficiencies; and address violations. MRAs may be issued with or without a violation of law.
The following statements have been rescinded:
Statement of Policy on Bureau Supervisory and Enforcement Response to COVID-19 Pandemic: This Statement indicated the CFPB would consider an institution’s staffing, resources and other pandemic-related challenges in its supervisory activities and enforcement actions. It also stated the CFPB would be “sensitive” to good-faith efforts intended to help consumers.
Statement of Policy on Supervisory and Enforcement Practices Regarding Quarterly Reporting Under the Home Mortgage Disclosure Act: This Statement gave relief to institutions required to report HMDA data quarterly, indicating the failure to do so would not result in a citation or enforcement action. In light of this, data for the first quarter of 2021 will be due by May 31, 2021 for quarterly filers.
Statement on Supervisory Enforcement Practices Regarding CFPB Information Collections for Credit Card and Prepaid Account Issuers: This Statement gave credit and prepaid card issuers some relief in submitting agreements; price and availability information.
Statement on Supervisory and Enforcement Practices Regarding the Fair Credit Reporting Act and Regulation V in Light of the CARES Act: This Statement communicated a “flexible supervisory and enforcement approach”, and consideration of an institution’s good faith efforts when evaluating furnishers’ responsibilities. Note, institutions should continue to report consumer report information as required under the CARES Act.
Statement on Supervisory and Enforcement Practices Regarding Regulation Z Billing Error Resolution Timeframes in Light of the COVID-19 Pandemic: This Statement indicated the CFPB would consider a creditor’s circumstances and good faith efforts when billing errors are not resolved within the required timeframes.
Statement on Supervisory and Enforcement Practices Regarding Electronic Credit Card Disclosures in Light of the COVID-19 Pandemic: This Statement gave relief to institutions that did not obtain E-Sign consent during phone calls prior to giving disclosures electronically.
If you made any allowances or changes to your processes as a result of any of these statements, you will want to communicate that “relief” is no longer in effect.
Diane joined Banker’s Compliance Consulting with over 10 years of compliance experience and over 15 years of experience within the financial industry. Diane is a Certified Regulatory Compliance Manager (CRCM) and has a Bachelor’s Degree in Sociology with a concentration in Criminal Justice. She is a graduate of the Schools of Banking Compliance School and has participated in various other training opportunities throughout her career. Diane understands firsthand the struggles banks face in building and maintaining successful compliance programs. Her experience and common sense approach to consumer compliance is a great asset to our clients.
Diane and her husband have two kids who keep them busy. She enjoys running and other sports and is a big Bugs Bunny fan! She’s a bit crazy in that she does enjoy reading some of these regulations and she’s a “crazy cat lady!” Her cat tales are hilarious!