Comments Galore
AFSA is preparing comment letters on three crucial initiatives that will drastically affect consumer credit.
-
The Consumer Financial Protection Bureau’s (CFPB) proposed nonbank registries on “repeat offenders”;
-
The CFPB proposed registry on terms and conditions; and
-
The Federal Trade Commission’s (FTC) rule prohibiting noncompete clauses.
These three initiatives raise serious concerns for the consumer credit industry and the economy at-large.
The CFPB announced its registry on what it calls “repeat offenders” on December 12. The proposed rule would require covered entities “to register with the Bureau upon becoming subject to a public written order or judgment imposing obligations based on violations of certain consumer protection laws. AFSA has serious concerns about the Bureau’s proposed registry, which seems more like “name and shame” website than a useful tool.
The Bureau also announced its registry on “Terms and Conditions in Form Contracts That Claim to Waive or Limit Consumer Rights and Protections” yesterday. The rule would require covered entities to register the terms and conditions within contracts that “limit or purport to limit consumer rights and legal protections.” The intent of the rule seems to be to limit arbitration, which would be a mistake as arbitration actually benefits consumers.
The FTC proposed its rule prohibiting noncompete clauses on January 5th. The rule would ban the use of noncompete clauses; the FTC argues that the ability to change jobs is “core to economic liberty” and will raise wages by an estimated $300 billion per year. AFSA disagrees and is working with other trade associations to develop a response to the rule.
We’ll keep you informed as these issues move forward.
January 12th, 2023
