NACHA Government Relations Update - April 28, 2016

Posted April 28, 2016

NACHA GR Releases Congressional Outlook for April
NACHA’s GR team has compiled a summary highlighting anticipated upcoming Congressional activity, updated as of April 2016.

Eichner Replacing Retiring Roseman Federal Reserve Board
The Federal Reserve Board has announced the appointment of Matthew J. Eichner as director of its Division of Reserve Bank Operations and Payment Systems, effective May 1, 2016. Eichner has served as deputy director of the division since January 2015 and succeeds Louise L. Roseman, who will serve as senior adviser until her retirement later this year. The day before the Eichner announcement, NACHA presented Louise Roseman with a Lifetime Achievement Award at PAYMENTS 2016 for her efforts leading the Fed’s payments efforts over 30 years.

As division director, Mr. Eichner will be responsible for the division's oversight of:

  • Federal Reserve Banks' operations
  • The development of regulations and policies governing payment, clearing, and settlement systems
  • The supervision of systemically important financial market infrastructures
  • Carrying out the Board's responsibilities as issuance authority for U.S. currency
  • Fostering improvements to the efficiency and integrity of the U.S. payments system more broadly; and the division's research program focused on a variety of payment, clearing, and settlement topics

CFPB Releases White Paper on Payday Lending Impact on Overdrafts
Repeated attempts by online payday lenders to collect payments via direct debit can lead to unanticipated consequences for consumers’ bank accounts, according to a report  issued by the CFPB. Borrowers who go online for payday loans are incurring an average of $185 in bank penalties because of debit attempts that result in overdraft or failure, according to a Consumer Financial Protection Bureau (CFPB) study highlighting concerns that might be addressed in an upcoming rule. Of note to is that the report states, "The data used in this analysis were previously used for the Bureau’s research into deposit advance products; all of the depositories included in the data collection offered deposit advance products during the sample period, which spanned 18 months in 2011 and 2012".The report says that the data on consumer checking accounts was obtained from several large depository institutions through the CFPB's  supervisory process.

In a reply to CFPB, the Online Lender’s Alliance addressed the issue that the data used was outdated and “the CFPB study did not take into account the current NACHA ‘total return threshold’ rules, which went into effect last October and transformed industry by effectively limiting the NSF returns of Internet lenders and other ACH merchants to no more than 15 percent of total ACH originations. We believe that, if the CFPB had conducted its study using current data, there would have been a very different outcome.”

Legislative Tool Kit
House 2016 Calendar (also in bottom right hand bar)
Senate 2016 Calendar (also in bottom right hand bar)​​

Access: Public