NACHA Government Relations Update - Oct. 15, 2015

Posted October 14, 2015

CFPB Hosts Second Community Bank Advisory Council of 2015
On Sept. 30, 2015, the CFPB convened the Community Bank Advisory Council in Washington, D.C. to discuss consumer challenges in payment systems. CFPB Director Cordray gave opening remarks and discussed his vision and requirements for faster payment systems in the United States. Cordray believes that there are flaws in existing legacy payment systems that should be resolved with the creation of a new real time or near-real time system that will benefit consumers.

Discussion revolved around the challenges that consumers face with the uncertainty of funds availability in their accounts and their exposure to fraud and unauthorized transactions. Cordray points to international payments systems that rely on credits or push payments as a potential guide to faster payments in the United States.

OIG Reports Top Management Challenges for CFPB and FRB
On Oct. 5, 2015, the Office of Inspector General for the Consumer Financial Protection Bureau and the Federal Reserve Board released reports listing the top management challenges for the two agencies. The report for the CFBP listed “ensuring an effective information security program” as the number one challenge facing the agency, citing a 2014 Government Accountability Office audit that reported “the CFPB has collected consumer financial data on credit card accounts, mortgage loans, and other products”, however “the CFPB lacks written procedures and comprehensive documentation for a number of processes, including data intake and information security risk assessments.” The top challenge cited for the Fed – “enhancing oversight of cybersecurity at supervised financial institutions” – was new this year. Additional challenges regarding development and retention of workforce, stronger controls of management operations and proper maintenance of physical infrastructure were also listed as priorities to be addressed by both agencies.

Resources

Legislative Tool Kit
House 2015 Calendar (in the right hand bar)
Senate 2015 Calendar (in the right hand bar)​​

Access: Public