NACHA Releases Q2 2016 Government Relations Digest

Posted July 5, 2016

NACHA’s quarterly Government Relations Digest reflects current payments system policy issues of potential impact to the ACH Network and other retail payment channels. The following are some highlights most relevant to NACHA Members. Click here for the full Q2 Digest or view the bottom right-hand bar.​

Electronic Payments

  • On June 22, 2016, Rep. Marlin Stutzman (R-IN) introduced H.R. 5569, to repeal the authority of the Bureau of Consumer Financial Protection to restrict arbitration agreements, and for other purposes. (See page 4 for more information.)
  • On June 14, 2016, Rep. Randy Neugebauer (R-TX) introduced H.R. 5465, to repeal section 1075 of the Dodd-Frank Act (Durbin amendment) relating to debit interchange fees. (See page 2 for more information.)
  • On May 24, the CFPB published a proposed rule on arbitration agreements. (See page 3 for more information.)

Cyber and Data Security

  • On June 13, 2016, Rep. Donovan (R-NY) introduced H.R. 5459, the Cyber Preparedness Act of 2016, which would seek to facilitate the timely dissemination of cyber threat information from the federal level to the appropriate state and local authorities. (See page 6 for more information.)
  • On June 7, 2016, the Federal Financial Institutions Examination Council (FFIEC) published a joint statement reminding financial institutions to review their risk management practices and controls over information technology and wholesale payment systems. (See page 5 for more information.)
  • On April 26, 2016, Rep. Jim McDermott (D-WA) introduced H.R. 5069, the Cybersecurity Systems and Risks Reporting Act, which would require publicly traded companies to include discussion of cybersecurity systems and risks in their mandated internal controls report and disclosures. (See page 6 for more information.)

Regulatory Reform

  • On June 23, 2016, Rep. Jeb Hensarling (R-TX) released a discussion draft, the Financial Creating Hope and Opportunity for Investors Consumers and Entrepreneurs (CHOICE) Act, as a Republican alternative to the current financial regulatory structure as amended by the Dodd-Frank Act. (See page 18 for more information.)
  • On June 21, 2016, Rep. Tim Ryan (D-OH) introduced H.R. 5541, the Financial Services for the Underserved Act of 2016, which would allow for federal credit unions to include underserved locations in their field of membership. (See page 19 for more information.)
  • On June 16, Rep. Luke Messer (R-IN) introduced H.R. 5521, the RIGHTS at the CFPB Act of 2016, which would create a mechanism for private parties to move CFPB administrative proceedings to federal court. (See page 19 for more information.)
  • On June 16, 2016, Rep. Stevan Pearce introduced H.R. 5522, to amend the Consumer Financial Protection Act of 2010 to require that civil investigative demands be appealed to courts, and for other purposes. (See page 19 for more information.)
  • On June 16, 2016, Rep. Roger Williams (R-TX) introduced H.R. 5527, the CFPB Rule Accountability Act, which would require Congress to authorize any CFPB rulemaking that would have an economic impact of $100 million or greater. (See page 20 for more information.)
  • On June 15, 2016, Rep. Mia Love (R-UT) introduced H.R. 5490, to amend the Consumer Financial Protection Act of 2010 to require that no deference be given to the CFPB in the interpretation of consumer finance law, and to define the scope of judicial review of Bureau actions. (See page 20 for more information.)
  • On June 14, 2016, the CFPB released an interim final rule and a request for public comment to adjust the civil monetary penalties within the Bureau’s jurisdiction to account for inflation. (See page 16 for more information.)
  • On June 9, 2016, Rep. Frank Guinta (R-NH) introduced H.R. 5419, the Credit Union Examination Reform Act, which would require the NCUA to establish an exam cycle of at least 18 months for certain well capitalized credit unions. (See page 20 for more information.)
  • On May 12, 2016, Rep. Tom Emmer (R-MN) introduced H.R. 5211, the CFPB Dual Mandate and Economic Analysis Act, establish at the CFPB an Office of Economic Analysis to review all proposed guidance, orders, rules and regulations. The Office would have to review how CFPB actions impact consumer choice, price, and access to credit, and report its assessments in the Federal Register. (See page 21 for more information.)
  • On May 11, 2016, Rep. Carolyn Maloney (D-NY) introduced H.R. 5198, the Overdraft Protection Act of 2016, which would require financial institutions to disclose the details of their overdraft coverage program. (See page 21 for more information.)
  • On May 3, 2016, the FFIEC released a notice and request for comment on its proposal to revise the existing Uniform Interagency Consumer Compliance Rating System (CC Rating System) to reflect regulatory, supervisory, technological, and market changes. (See page 17 for more information.)
  • On April 29, 2016, Rep. Nita Lowey (D-NY) introduced H.R. 5156, the Small Business Credit Card Act of 2016, which would amend the Truth in Lending Act to provide coverage and protections for credit cards issued to small businesses. (See page 22 for more information.)
  • On April 28, 2016, Rep. Blaine Luetkemeyer (R-MO) introduced H.R. 5112, the Unfair or Deceptive Acts or Practices Act, which would remove “abusive” from the CFPB’s UDAAP authority. (See page 22 for more information.)
  • On April 14, 2016, Rep. Mike Quigley (D-IL) introduced H.R. 4950, the Small Financial Institution Advisory Committees Act of 2016, which would establish community bank and credit union advisory committees within the Treasury Department. (See page 22 for more information.)
  • On April 12, 2016, H.R. 2947, the Financial Institution Bankruptcy Act of 2015, introduced by Rep. Dave Trott (R-MI), passed in the House by voice vote. It would create a new subchapter of Chapter 11 of the Bankruptcy Code to facilitate the resolution of SIFIs through the bankruptcy process. (See page 30 for more information.)
  • On April 11, 2016, Rep. Lynn Westmoreland (R-GA) introduced H.R. 4894, to repeal Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which would repeal the FDIC’s orderly liquidation authority. (See page 23 for more information.)

Consumer Lending

  • On June 22, 2016, Rep. Scott Tipton (R-CO) introduced H.R. 5552, the Accounting for Consumer Credit and Encouraging State Solutions (ACCESS) Act, which would permit a state or federally recognized Indian tribe to request a five-year exemption from the CFPB’s final payday lending rulemaking. (See page 46 for more information.)
  • On June 9, 2016, Rep. Mia Love (R-UT) introduced H.R. 5434, the Stop Debt Trap Collection Abuse Act of 2016, which would mandate that debt collectors in federal agencies abide by the debt collection practices in the Fair Debt Collection Practices Act (FDCPA). (See page 46 for more information.)
  • On June 2, 2016, the CFPB released a notice of proposed rulemaking on payday, vehicle title, and certain high-cost installment loans. (See page 45 for more information.)
  • On May 19, 2016, Rep. Maxine Waters (D-CA) introduced H.R. 5282, the Comprehensive Consumer Credit Reporting Reform Act of 2016, to reform the Fair Credit Reporting Act (FCRA). (See page 46 for more information.)
  • On April 26, 2016, Rep. Joyce Beatty (D-OH) introduced H.R. 5058, the Free Credit Score Act of 2016, would require nationwide consumer reporting agencies to include the consumer’s credit score when furnishing a consumer with a free annual report. (See page 47 for more information.)
  • On April 20, 2016, Rep. Steve Cohen (D-TN) introduced H.R. 5010, the Fair Access to Credit Scores Act of 2016, would require certain consumer reporting agencies to include a free credit score as part of the consumer’s free annual credit disclosure. (See page 47 for more information.)
  • On April 7, 2016, Sen. Jeff Merkley (D-OR) introduced S. 2760, the Stopping Abuse and Fraud in Electronic (SAFE) Lending Act of 2016, would enable consumers to stop automatic bank withdrawals from payday lenders and provide enhanced authority to federal regulators that oversee payday lenders. On April 21, Rep. Suzanne Bonamici (D-OR) introduced an identical bill, H.R. 5023. (See page 48 for more information.)

Privacy

  • On April 19, 2016, Rep. Randy Hultgren (R-IL) introduced H.R. 4993, the Homeowner Information Privacy Protection Act (HIPPA), which would direct the OCC to conduct a study evaluating how consumer privacy is impacted by the CFPB’s October 2015 rule expanding the information collected by banks and credit unions under the Home Mortgage Disclosure Act (HMDA). (See page 53 for more information.)

Data Collection

  • On June 8, 2016, Rep. Matt Salmon (R-AZ) introduced H.R. 5413, the CFPB Data Accountability Act, which would provide additional requirements as to how the CFPB maintains and presents its findings from its Consumer Complaint Database. (See page 55 for more information.)
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