The Federal Financial Forum

Editor’s Note: Cross-posted from OIRA Watch.

From: Ballard Spahr

By Barbara S. Mishkin

The American Bankers Association has sent a comment letter to the CFPB challenging the Bureau’s use of the generic clearance process to conduct research in connection with its overdraft rulemaking.  The letter was submitted in response to the CFPB’s request for approval from the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (PRA) of an existing generic clearance “to collect quantitative data on effective strategies and consumer experiences….” (Qualitative Consumer Education Generic Clearance).

From: Tech Times

By Katrina Pascual

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The Consumer Financial Protection Bureau (CFPB) found overall that people assigning their cars as collateral for a supposedly short-term emergency loan are suffering high repossession rates, protracted repayment periods, and interest rates soaring to 300 percent.

The report (PDF) is deemed the first from federal regulators to delve on the auto title lending sector, which has significantly grown in years, but stays prohibited in half of the United States. In the similar case of payday loans, the findings could result in additional regulatory measures in the industry.

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From: Mondaq

Article by Steven D. Lofchie | Cadwalader, Wickersham & Taft LLP

In its annual report, the Government Accountability Office (“GAO”) encouraged Congress to make legislative changes to the financial regulatory structure in order to improve (i) the efficiency and effectiveness of oversight, (ii) the parity between consumer and investor protections, and (iii) the consistency of financial oversight for similar institutions, products, risks and services. GAO also called on Congress to consider whether aligning the authority of the Financial Stability Oversight Council with its mission to respond to systemic risks necessitates legislative changes.