There has been a long-standing, albeit unwritten tradition in the midst of a transition with the U.S. Presidency and the Executive Branch, for federal agencies to suspend new rulemaking. As Senate Banking Committee Chairman Tim Scott (R-SC) noted, “It is paramount that President Trump can begin his administration on January 20th with a fresh slate to implement the economic agenda that the American people resoundingly voted for.” Other financial agencies have ceased rulemaking. The Comptroller of the Currency, the FDIC, NCUA, and Federal Reserve committed to pausing rulemaking before the upcoming inauguration. The CFPB, however, apparently did not get the memo.
Earlier this week, the Bureau announced that it will promulgate a larger participant rule for nonbank entities that provide personal loans to consumers. The Bureau’s reasoning is that there is an unlevel playing field between banks and nonbanks. AFSA members that offer personal loans are already highly supervised at the state level. A difference in supervision at the federal level exists because banks offer deposits, while state-licensed and -regulated nonbanks do not.
Never mind that, given the upcoming change in administration, it is unlikely that such a rule will be finalized. This latest announcement further reinforces the broader concerns many have voiced about the Bureau creating uncertainty and confusion with its approach to rulemaking. The CFPB should follow the lead of other federal agencies in deferring to the transition of administrations.
In Times of Transition …
Jan 09, 2025
There has been a long-standing, albeit unwritten tradition in the midst of a transition with the U.S. Presidency and the Executive Branch, for federal agencies to suspend new rulemaking. As Senate Banking Committee Chairman Tim Scott (R-SC)… Read the rest
Business Partner Program Get the Glow Up
Jan 09, 2025
Working with the Business Partner Board, AFSA has developed a refreshed Business Partner program that provides enhanced benefits, clearer metrics and more opportunities for engagement with AFSA members.
AFSA Business Partners play a … Read the rest
New Kids on the Committee
Jan 09, 2025
Nine new members have been named to the House Financial Services Committee as the 119th Congress officially begins. A little bit about each new member is below.
1. Rep. Lisa McClain (R-Mich. 9): Congresswoman McClain was elected by her colleagues… Read the rest
Innovations & Insights: Cybersecurity Threats and Trends 2025
Jan 08, 2025
As the digital landscape evolves, cybersecurity threats are becoming more sophisticated and pose significant risks to organizations. This session will provide insights into the latest strategies, techniques, and tools to future-proof… Read the rest
AFSA Statement on New Orleans Attack
Jan 02, 2025
AFSA offers its deepest condolences to the victims of the attack in New Orleans during the city’s New Year’s Day celebrations, and our thoughts are with our member companies, business partners and their customers who live and operate in the … Read the rest
January White Paper: Review and Preview
Jan 02, 2025
AFSA’s State Government Affairs team released its latest white paper that highlights emerging topics in the 2024 legislative year that are expected to become highly debated issues in 2025. In 2024 artificial intelligence continued to… Read the rest
The 119th Congress
Jan 02, 2025
Welcome to the 119th Congress! January will be chock full of congressional, executive, and regulatory actions. AFSA will be meeting with members this week at the start of the new Congress in order to continue to protect fair access to capital… Read the rest
New Jersey Debt Adjuster Concerns
Dec 20, 2024
AFSA’s State Government Affairs team submitted testimony to the New Jersey Senate regarding S1310, which would permit specific for-profit debt adjusters to be licensed for conducting business in the state. These adjusters charge high… Read the rest
FTC’s Final “Junk Fees” Rule
Dec 20, 2024
The Federal Trade Commission has released its final “junk fees” rule. AFSA is pleased to report that the final rule is much narrower in scope and does not apply to financial services. The final rule includes a definition for “Covered Good… Read the rest
Lump of Coal? A Hawkish Rate Cut
Dec 20, 2024
The Federal Reserve’s Federal Open Market Committee (FOMC) on December 18 lowered the federal funds rate target by 25 basis points, a quarter percentage point. The target range now stands at 4.25 percent to 4.5 percent, a full percentage… Read the rest