On April 1, AFSA posted comments on the CFPB’s proposal to establish Regulation AA. This new regulation would establish new limitations on consumer credit that exceed the CFPB’s authority.
The proposal would prohibit provisions in contracts that waive federal or state laws that provide consumer benefits. One example of the negative effect of this rule would be to ban waivers of redemption in foreclosure. Some states offer a borrower the right to redeem property sold to a foreclosure purchaser after the property is sold to a new buyer. Lenders and consumers might want to waive that right to streamline the foreclosure process generate a higher value in the foreclosure sale.
The rule also would have a potential effect on lawful arbitration clauses. The rule would bar agreements waiving “causes of action.” A “cause of action” is a set of facts or circumstances that give a party the right to seek judicial relief. AFSA and sister trades pointed out that an arbitration clause that requires parties to handle all disputes outside of courts could be banned by this rule. The CFPB lost its authority to make rules on arbitration by operation of the Congressional Review Act in 2017, so this rule is beyond the CFPB’s authority.
As this proposal was issued right before end of the Biden administration, it is likely the rule will be reassessed and possibly withdrawn by the new CFPB leadership.
AFSA Comments on Proposed Regulation AA
Apr 02, 2025
On April 1, AFSA posted comments on the CFPB’s proposal to establish Regulation AA. This new regulation would establish new limitations on consumer credit that exceed the CFPB’s authority.
The proposal would prohibit provisions in contracts… Read the rest
AFSA Supports Remote Notarization
Apr 02, 2025
This week AFSA and other financial trade groups signed on to a letter in support of H.R.1777, the “Securing and Enabling Commerce Using Remote and Electronic (SECURE) Notarization Act.”
Introduced by Reps. Cliff Bentz (R-OR)… Read the rest
CFPB’s Payday Pullback
Mar 28, 2025
AFSA appreciates the decision by the Consumer Financial Protection Bureau to suspend enforcement of the Payday, Vehicle Title, and Certain High-Cost Installment Loans regulation, specifically related to the payment withdrawal provisions… Read the rest
AFSA Urges FDIC ILC Policy Withdrawal
Mar 27, 2025
This week, AFSA along with other financial associations, sent a letter urging the FDIC to withdraw its proposed rule that will negatively impact current ILC institutions and discourage future applications.
In July 2024 the FDIC announced… Read the rest
LISTEN | The Presidents’ Podcast
Mar 26, 2025
The latest episode of the AFSA Extra Credit Podcast features the leaders of the AFSA Education Foundation EDGE and Leadership Development programs.
Why it matters: Sandena Peterson, Chris Reyes and Alan Noel share their perspectives on … Read the rest
AFSA Has a List … Wants it Checked Twice
Mar 25, 2025
“Uncertainty” is a term being liberally tossed about nowadays as though it were a new concept to Washington. But as AFSA noted in its recent letter to President Trump’s Domestic Policy and National Economic teams, uncertainty has long been… Read the rest
AFSA Comments on CFPB Proposal for an Auto Loan Survey
Mar 19, 2025
On March 18, 2025, AFSA submitted a comment letter in connection with the CFPB’s proposal to launch an Auto Loan Survey. This proposal was issued on January 17, 2025.
The proposal is unusual because it seeks subjective information about consumer’s… Read the rest
AFSA Comments on IRS Commercial Clean Vehicle Tax Credit Rule
Mar 19, 2025
On March 17, 2025, AFSA submitted a comment letter to the IRS regarding a proposed rule for Commercial Clean Vehicle Tax Credits. This rule intended to clarify aspects of the Section 45W tax credit.
AFSA’s letter provided an explanation of… Read the rest
THIS THURSDAY | AFSA Webinar | Transform Your Auto Finance Strategy: Mastering Margin Management in Uncertain Times
Mar 18, 2025
Join us Thursday, March 20th at 2:00 p.m. EST!
In the fast-paced world of auto finance, staying ahead of the curve is not just a goal—it’s a necessity. In early 2025 the landscape is shifting under our feet, brought on by political shifts, economic… Read the rest
Women’s History Month | Corinne Kirkendall
Mar 13, 2025
AFSA is celebrating Women’s History Month by featuring outstanding female leaders in the consumer credit industry.
