The Consumer Financial Protection Bureau (CFPB) is accustomed to criticism from the financial sector. The day before its newly released data privacy rule became the subject of a lawsuit, the bureau received a letter from multiple trade organizations asserting its September guidance on overdraft fees should be rescinded.
Learn more about this matter and other developments in this roundup:
Trade groups argue CFPB overdraft circular should be rescinded
Several financial trade groups sent a letter to prudential regulators arguing the CFPB’s most recent overdraft circular imposes new requirements on covered institutions, in violation of the Administrative Procedure Act (APA), and should be rescinded. The organizations contended the requirements described in the guidance extend beyond the reach of the Electronic Funds Transfer Act. Additionally, they asserted the CFPB and other agencies should follow proper APA procedures when proposing a new expectation, seek feedback (including on costs and implementation challenges), then finalize it, rather than simply announcing new expectations. The letter was signed by the American Bankers Association, America’s Credit Unions, the Bank Policy Institute, the Consumer Bankers Association, the Independent Community Bankers of America, and the U.S. Chamber of Commerce. Find the full letter via this link.
CBA launches debt relief education program
The Consumer Bankers Association (CBA) announced a new consumer education campaign called “About Debt Relief,” aimed at helping to educate consumers about the best available options to manage excessive credit card debt. Specifically, the campaign will highlight research from the CFPB and industry data regarding consumer risks relating to the use of debt settlement companies, which often advertise heavily to attract consumers but may be more costly and leave consumers with worse outcomes than other options. Learn more about the campaign here.
ICBA, community banks collect funds for hurricane relief
The Independent Community Bankers of America (ICBA) Foundation’s Hurricane Relief Fund is requesting tax-deductible donations to be distributed to help support community bankers in Florida, Georgia, North Carolina, and South Carolina affected by Hurricanes Helene and Milton. The fund’s webpage allows individuals, organizations, and community banks to make tax-deductible donations to benefit community banks and their employees in the affected areas. The ICBA Foundation does not use any collected funds to administer this program, according to a press release. Learn more here.
MBA welcomes new CFO
The Mortgage Bankers Association (MBA) announced that Astrid Vermeer joined the nation’s largest trade organization representing mortgage bankers as senior vice president, chief financial officer. Vermeer will oversee MBA’s managerial accounting and financial operations, including financial reporting, budgeting, forecasting, and risk management. Vermeer brings more than 20 years of financial leadership experience to the organization. Most recently, she served as the chief financial and administrative officer for the Perkins School for the Blind, where she managed a $100 million operating budget and was the lead executive for several operations, including legal, finance, accounting, and investments. Learn more about her background here.