NACHA Releases Q3 2015 Government Relations Digest

Posted October 14, 2015

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. View the right-hand bar for the full Q3 Digest.​

Payments System

  • This quarter, the Federal Reserve System established its Faster Payments Task Force and Payments Security Task Force, and the task force's elected leaders, including NACHA’s Jan Estep, to steering committees to help guide task force work. (See page 1 for more information.)

Electronic Payments

  • On Sept. 23, 2015, the Federal Reserve Board approved enhancements to its same-day automated clearing house (ACH) service in order to correspond to recently adopted amendments to the NACHA Operating Rules. (See page 5 for more information.)
  • On Sept. 21, 2015, the Consumer Financial Protection Bureau published a final rule amending Regulation Z to update the dollar amounts of various thresholds that are adjusted annually based on the annual percentage change reflected in the Consumer Price Index on Jun. 1, 2015. (See page 4 for more information.)
  • On Sept. 4, 2015, the Consumer Financial Protection Bureau (CFPB) published a request for comment to use its regulatory authority under the Electronic Fund Transfer Act to conduct a national web survey of 8,000 individuals as part of its study of ATM/debit card overdraft disclosure forms. (See page 4 for more information.)
  • On Aug. 10, 2015, the Federal Reserve clarified Regulation II (Debit Card Interchange Fees and Routing) regarding the inclusion of transaction-monitoring costs in the interchange fee standard. (See page 2 for more information.)

Cyber and Data Security

  • On Jul. 29, 2015, Rep. David Cicilline (D-RI) introduced H.R. 2977, the Consumer Privacy Protection Act of 2015, which would require companies storing information on over 10,000 customers to keep that information safe from cyberattacks and data breaches and to notify these customers and federal law enforcement should a major data breach occur. (See page 9 for more information.)
  • On Jun. 30, 2015, the Federal Financial Institutions Examination Council (FFIEC) published a press release announcing its creation of a cybersecurity self-assessment tool to help institutions evaluate their inherent cybersecurity risk and their risk management capabilities. (See page 8 for more information.)

Regulatory Reform

  • On Sept. 30, 2015, H.R. 1266, the Financial Product Safety Commission Act of 2015, introduced by Rep. Randy Neugebauer (R-TX), was reported out of the House Financial Services Committee by a vote of 35-24. It would change the leadership of the CFPB from a single director to a five-member bipartisan commission. (See page 27 for more information.)
  • On Sept. 30, 2015, H.R. 957, the Bureau of Consumer Financial Protection-Inspector General Reform Act of 2015, introduced by Rep. Steve Stivers (R-OH), was reported out of the House Financial Services Committee by a vote of 56-3. It would remove the authority of the Federal Reserve Chair to appoint an inspector general for the CFPB and require that an inspector general for the CFPB be appointed by the President and confirmed by the Senate. (See page 31 for more information.)
  • On Sept. 30, 2015, H.R. 2769, the Risk-Based Capital Study Act of 2015, which was introduced by Rep. Steven Fincher  (R-TN) and would require the National Credit Union Administration (NCUA) to provide a study to Congress with respect to certain aspects of a potential rule prior to issuing any such rule, was reported out of the House Financial Services Committee by a vote of 50-9. (See page 17 for more information.)
  • On Sept. 18, 2015, the Federal Financial Institutions Examination Council proposed changes to Call Reports eliminating certain required data items as part of its initiative to streamline reporting requirements for community banks. (See page 13 for more information.)
  • On Sept. 10, 2015, Sen. Rand Paul (R-KY) introduced S. 2028, the Small Lending Enhancement Act of 2015, would authorize the NCUA to allow a credit union to increase from 12.25% to 27.5% of total assets the amount of member business loans so long as the credit union meets certain criteria. (See page 14 for more information.)
  • On Aug. 5, 2015, Sen. Mike Rounds (R-SD) introduced S. 1963, the Bureau of Consumer Financial Protection Advisory Board Enhancement Act, which would create a new small business advisory panel within the CFPB and make permanent community bank and credit union panels within the CFPB. (See page 14 for more information.)
  • On Aug. 5, 2015, Sen. Dianne Feinstein (D-CA) introduced S. 1957, the State Licensing Efficiency Act of 2015, which would give state regulators the authority to use the Nationwide Mortgage Licensing System (NMLS) to process background checks for other types of financial services industries beyond mortgage originators. (See page 19 for more information.)
  • On Jul. 23, 2015, Rep. Bill Huizenga (R-MI) introduced H.R. 3189, the Fed Oversight Reform and Modernization (FORM) Act of 2015, which would require the Federal Reserve to adopt a reference monetary policy rule and justify to Congress deviations from that rule, to perform an economic analysis of the costs and benefits of any new rules, and to disclose the salaries of its highly paid employees, among others. (See page 15 for more information.)
  • On Jul. 23, 2015, Sen. Mike Lee (R-UT) introduced S. 1848, the Sound Dollar Act of 2015, which would alter the structure and mission of the Federal Reserve and bring the CFPB under the Congressional appropriations process. (See page 15 for more information.)
  • On Jul. 22, 2015, Sen. John Cornyn (R-TX) introduced S. 1840, the Taxpayer Protection and Responsible Resolution Act, which would repeal the orderly liquidation authority in Title II of the Dodd-Frank Act and replace it with a new Chapter 14 of the Bankruptcy Code. (See page 16 for more information.)
  • On Jul. 21, 2015, Sen. Ted Cruz (R-TX) introduced S. 1804, the Repeal CFPB Act, which would repeal the Consumer Financial Protection Bureau. On July 21, 2015, Rep. John Ratcliffe (R-TX) introduced an identical bill, H.R. 3118. (See page 16 for more information.)
  • On Jul. 21, 2015, Rep. Michael Fitzpatrick (R-PA) introduced H.R. 3131, the Bureau Research Transparency Act, which would require that whenever the CFPB releases a research paper to the public to also accompany it with all of the studies, data, and other analyses upon which it was based. (See page 16 for more information.)
  • On Jul. 14, 2015, Rep. Michael Capuano (D-MA) introduced H.R. 3054, the 21st Century Glass-Steagall Act, which would separate FDIC-insured banks from being or becoming affiliated with other types of financial services. On July 7, 2015, Sen. Elizabeth Warren (D-MA) introduced an identical bill, S. 1709. (See page 15 for more information.)
  • On Jul. 7, 2015, Rep. Dave Trott (R-MI) introduced H.R. 2947, the Financial Institution Bankruptcy Act of 2015, which would create a new subchapter within Chapter 11 of the Bankruptcy Code to facilitate the resolution of SIFIs through the bankruptcy process. (See page 17 for more information.)

Consumer Lending

  • On Jul. 8, 2015, Rep. Tammy Duckworth (D-IL) introduced H.R. 2979, the Military Consumer Protection Act, which would give greater authority to the CFPB under the Service Members Civil Relief Act to protect military service members from predatory lending. On Jun. 11, 2015, Sen. Jack Reed (D-RI) introduced an identical bill, S. 1565. (See page 33 for more information.)

Privacy

  • On Jul. 23, 2015, the CFPB extended the comment period on its information collections relating to Regulation P. (See page 36 for more information.)

Consumer Complaints

  • On Jun. 30, 2015, the CFPB published a request for information on how to best present information in the Consumer Complaint Database so that it is timely and understandable in order to help consumers make responsible financial decisions. (See page 43 for more information.)
Access: Public