CFPB Rescinds 7 Pandemic-Related Flexibilities

Financial institutions may face more consumer compliance enforcement

The Consumer Financial Protection Bureau (CFPB) announced the rescission of seven policies that were put in place in 2020 to provide temporary flexibility to financial institutions working with consumers that were affected by the pandemic. These changes are effective as of April 1, 2021.

As financial institutions grapple with complying with the legal and regulatory obligations outlined in these policies, the CFPB warns it “intends to exercise the full scope of its supervisory and enforcement authority provided under the Dodd-Frank Act.”

The CFPB also rescinded its 2018 bulletin on supervisory communications and replaced it with a revised bulletin announcing changes to how CFPB examiners will convey supervisory expectations through matters requiring attention.

The seven policy statements included in this announcement are as follows:

• Statement on Bureau Supervisory and Enforcement Response to COVID-19 Pandemic
• Statement on Supervisory and Enforcement Practices Regarding Quarterly Reporting Under the Home Mortgage Disclosure Act
• Statement on Supervisory and Enforcement Practices Regarding CFPB Information Collections for Credit Card and Prepaid Account Issuers
• Statement on Supervisory and Enforcement Practices Regarding the Fair Credit Reporting Act and Regulation V in Light of the CARES Act 
• Statement on Supervisory and Enforcement Practices Regarding Certain Filing Requirements Under the Interstate Land Sales Full Disclosure Act (ILSA) and Regulation J 
• Statement on Supervisory and Enforcement Practices Regarding Regulation Z Billing Error Resolution Timeframes in Light of the COVID-19 Pandemic  
• Statement on Supervisory and Enforcement Practices Regarding Electronic Credit Card Disclosures in Light of the COVID-19 Pandemic  

Financial institutions should be aware of these policy changes as the CFPB plans to step up enforcement in these areas. Kaufman Rossin’s risk advisory team has extensive experience assisting financial institutions with regulatory compliance, including consumer compliance, and is prepared to help clients navigate these changes. Contact me or another member of our team to learn how these CFPB rule changes may impact your financial institution and how you can mitigate consumer compliance risks.