A Busy Week in Deregulation
This week, AFSA responded to the Office of Management and Budget (OMB) Request for Information on Deregulation. This request invited the public to identify regulations that should be rescinded along with justifications for doing so. The request sought feedback on regulations that are “unnecessary, unlawful, unduly burdensome, or unsound.” AFSA’s comment requested that OMB review 14 different rules from the Consumer Financial Protection Bureau, Department of Defense, and the Federal Communications Commission.
This week, the CFPB announced its plans to withdraw 67 guidance filings, interpretive rules, policy statements, and advisory opinions. Because the CFPB was created with very little oversight and broad authorities, the CFPB is an agency that can easily overreach.
Over the past few years, industry has observed many instances of rulemaking and standard-setting by informal means rather than official notice-and-comment rulemaking. In this announcement, the CFPB has said that these withdrawals are not necessarily permanent. Rather, the CFPB will continue to review all guidance documents in an ongoing process.
We also understand that the CFPB has withdrawn an auto finance enforcement action along with guidance addressing states’ authority to use the CFPB’s authority. The Bureau is proposing rescission of the procedures for supervisory designation, the nonbank registry of enforcement, the adjudication practice rules, and the proposed rules on terms and conditions.
While the rapid speed of change is hard to follow, these actions are consistent with the AFSA’s years-long advocacy. Companies that offer consumer financial products and services want clear rules of the road that are thoughtfully established in the standard notice-and-comment rulemaking process.
May 16th, 2025
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