Removing Barriers Blog

BCFP Advocacy Update: Office of Innovation; CU Advisory Council, Payday Rule Delay, and Regulation P
Posted August 10, 2018 by CUNA Advocacy

CUNA Meets with the BCFP Office of Innovation
This week CUNA met with BCFP’s Paul Watkins, Assistant Director of the newly-created Office of Innovation to discuss “no-action” letters and other topics.  The Office of Innovation was created by Acting Director Mulvaney to implement the Bureau’s statutory mission to “encourage consumer-friendly innovation” in the financial services space.  This new office inherited the work previously being conducted under Project Catalyst but has also been tasked with “creating policies to facilitate innovation, engaging with entrepreneurs and regulators, and reviewing outdated or unnecessary regulations.”  CUNA intends to ensure any process for approving programs is efficient, transparent and does not result in uneven playing fields in the market.


Status of the Credit Union Advisory Committee
As CU Times recently reported, the Credit Union Advisory Committee (CUAC) is likely to return in the fall of this year with a smaller group of new members.  While there has yet to be a formal announcement from the Bureau on the topic, the article confirmed publicly the private discussions that CUNA had already been engaged in. During the BCFP’s recent RFI process, CUNA recommended the Bureau preserve the CUAC as a method of providing credit union feedback in addition to providing suggestions on how the CUAC could be used to greater effectiveness.  We look forward to more details from the Bureau on the subject and appreciate Acting Director Mulvaney’s support of conducting robust industry outreach.


Payday Rule Developments
This week a motion to delay the implementation of the BCFP’s Payday Rule was denied by a federal judge. Barring some other development, the rule’s compliance date will continue to be slated for August 19, 2019. In order for implementation to be delayed, the Bureau would need issue a proposal and allow for notice-and-comment pursuant to the APA. 

In a statement earlier this year, Acting Director Mulvaney said the Bureau “intends to engage in a rulemaking process so that the Bureau may reconsider the Payday Rule.”  CUNA remains supportive of the Bureau’s stated plans to revise the rule and any revisions should be designed to allow credit unions to continue to provide members in need of emergency credit with innovative short-term, small dollar lending options. This should include expressly exempting any future PAL II or III program approved and finalized by NCUA.

BCFP Issues Regulation P Relief
Finally, today, the Bureau issued a final rule amending Regulation P.  The rule provides regulatory relief by exempting credit unions that meet specific criteria from the requirement to send annual privacy notices to their members.  The changes are intended to align Regulation P with changes made to the Gramm-Leach-Bliley Act (GLBA) by the Fixing America’s Surface Transportation Act (FAST Act) of 2015.  While CUNA continues to evaluate the details of the rule, we are supportive of efforts to reduce the burdens of redundant and unnecessary regulations.