The American Financial Services Association on September 25th submitted a letter to House Speaker Nancy Pelosi (D-CA) and Minority Leader Kevin McCarthy (R-CA) expressing its strong support for HR 1595, the bipartisan-backed Secure and Fair Enforcement (SAFE) Banking Act. Sponsored by Representatives Ed Perlmutter (D-CO), Denny Heck (D-WA), Steve Stivers (R-OH) and Warren Davidson (R-OH), along with more than 200 other members of the House, the SAFE Act in part ends Operation Choke Point. Specifically, it prohibits a federal banking agency from ordering a bank to terminate a banking relationship with a legal business unless there is a valid reason and that reason is not based solely on reputational risk.

The New York Federal Reserve reported yesterday that as many as 60 million Americans — possibly twice the number previously estimated — struggle to qualify for credit. Unlike the “credit invisible” population that often resorts to payday lenders and pawn shops, these individuals have adequate credit files but are turned down because of low credit scores, a maxed-out credit card, or late payments. According to the New York Fed, these borrowers tend to be rural residents with lower income and higher rates of joblessness. African Americans and Hispanics also reportedly have, overall, a tougher time qualifying for loans.

At least one of the examinations the Consumer Financial Protection Bureau (CFPB) completed in 2018 included instances in which auto lenders sold a GAP product to consumers under circumstances which the CFPB found led to an abusive practice. The regulator noted that lenders sold a GAP product to consumers whose low loan-to-value (LTV) meant that they would not benefit from the product.

Join us on October 1 at 2:00 p.m. ET for Get untangled from manual loan origination processes¸ presented by White Clarke Group.

The American Financial Services Association reiterated its opposition to Congressional efforts to limit the use of arbitration in contracts. AFSA strongly opposes HR 1423, the “Forced Arbitration Injustice Repeal Act” (FAIR), which would effectively outlaw arbitration provisions in private contracts. Despite broad opposition from an array of industries, the bill passed out of the Judiciary Committee on September 10 by a largely party-line vote of 22-14, and was approved by the House of Representatives by a 228-196 party-line vote.

The AFSA Nominating Committee has approved two new members of the AFSA Board of Directors.

The comment period for the first-ever regulations of the Fair Debt Collection Practices Act (FDCPA) closed today. In its letter to the Consumer Financial Protection Bureau (CFPB), the American Financial Services Association (AFSA) commended the Bureau for bringing the FDCPA into the 21st century, and for taking the opportunity to study the third-party debt collection market.

The Consumer Financial Protection Bureau (CFPB) today announced upcoming enhancements to the Consumer Complaint Database. The changes include, “modified disclaimers to provide better context to the published data; integrating financial information and resources into the complaint process to help address questions and better inform consumers before they submit a complaint; and information to assist consumers who wish to contact the financial company to get answers to their specific questions.”

Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger informed congressional leaders and agency staff that she now supports a legal effort challenging the constitutionality of the regulator.

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