The financial industry has been vocal in its opposition to
the Consumer Financial Protection Bureau’s (CFPB) recent proposed rules on
“junk fees.” Multiple national and state-level trade associations recently
issued comment letters urging the bureau to reconsider finalizing its overdraft
rule.
Read about those comments below, as well as the mortgage
industry’s recent statement on the Biden administration’s plans to cap rental
property rate hikes.
CBA comments on CFPB’s overdraft rule
The Consumer Bankers Association (CBA) submitted a comment
letter regarding the CFPB’s proposed overdraft rule, arguing that it would
chill competition, harm vulnerable consumers and exceed the bureau’s authority.
CBA President and CEO Lindsey Johnson also released a statement regarding the
CBA’s concerns about the potential adverse impacts of the rule.
“The CFPB does not recognize or acknowledge that its
rulemaking poses serious harm to consumers,” Johnson said. “Because the
proposal would require banks to treat overdraft services as credit, many
customers who don't qualify for traditional credit products could lose access
to an important safety net.”
Read her full statement on CBA’s
website here.
ABA argues CFPB should
withdraw overdraft rule
The American Bankers Association (ABA) and 52 state bankers’
associations issued a letter urging CFPB to withdraw its proposed
rule on overdraft fees. The trade groups argue that “consumers will lose” if
the bureau goes through with finalizing its proposal, which would re-classify
overdraft as “credit.” The letter contends that the rule would go against
Congress’ determination 50 years ago that overdraft charges are not a form of
credit.
“Fewer consumers will have access to low-cost, full-service
deposit accounts, and those that do will be required to meet higher minimum
balance requirements. Some consumers will lose access to their account and
ultimately the banking system,” the trades wrote. “This result is directly at
odds with the goal of regulators and financial institutions to promote
financial inclusion and reduce the number of unbanked and underbanked
individuals.”
Read the trades’ full comment letter here.
MBA expresses opposition to Biden administration plans for
LIHTC plan
Mortgage Bankers Association (MBA) President and CEO Bob
Broeksmit detailed his organization’s opposition to the Biden administration’s
plans to impose a 10 percent limit on annual rent hikes at properties supported
by the Low-Income Housing Tax Credit (LIHTC) in an official statement.
“The LIHTC program is the federal government’s most
successful tool to construct and rehabilitate housing for low- and
moderate-income households,” Broeksmit said. “If the administration imposes
unworkable rent caps on LIHTC programs, it will severely suppress – if not kill
– the program. Such a move is puzzling and contradicts many of the administration’s
other efforts to increase affordable rental housing.”
Find his complete statement on the matter here.