#2023-24, October 20, 2023

United States Senate Passes Resolution to Overturn CFPB Section 1071 Rule

This week in a 53-44 vote, the U.S. Senate approved a resolution that would overturn the CFPB rule implementing Section 1071 of the Dodd-Frank Act. A similar resolution has been introduced in the U.S. House of Representatives, but it has not yet been taken up.

In September, a federal judge granted an injunction delaying the compliance dates for the CPFB Section 1071 final rule while the Supreme Court hears a separate case weighing the constitutionality of the CFPB’s funding structure.

The Association continues to closely monitor this issue and will provide members with updates as they develop. In the meantime, please do not hesitate to reach out to us if you have any questions.

For more information on this week’s vote in the U.S. Senate, click on the links below: 

• Senate approves resolution to overturn CFPB data collection rule | ABA Banking Journal.
• Senate votes to overturn CFPB small-business lending rule - Roll Call.

Julieann Thurlow, President & CEO of Reading Cooperative Bank, Elected Chair of the American Bankers Association

At the ABA Annual Convention in Nashville, Tennessee last week, Julieann Thurlow, President & CEO of Reading Cooperative Bank, was elected Chair of the American Bankers Association.

Kathleen Murphy, President & CEO of the Massachusetts Bankers Association, presented citations to Ms. Thurlow from the Massachusetts Senate and Massachusetts House of Representatives commending her on this distinguished achievement. The Association extends its sincerest congratulations to Julieann on her election to Chair of ABA.

To read more about Julieann Thurlow and her goals as Chair of the ABA, click the links below: 

• As new chair, Thurlow pledges to ‘ask the hard questions’ | ABA Banking Journal.
• Banking at the intersection of mission and opportunity | ABA Banking Journal.

Association Comments on New Federal Push to Ban “Junk Fees”

The Biden Administration recently announced a renewed push to ban “junk fees,” claiming banks are not being transparent on certain fees issued to consumers. The proposal would prohibit banks and credit unions with more than $10 billion in assets from charging customers fees for certain requests.

In a statement to the Boston Business Journal, Kathleen Murphy, MBA President & CEO, stated, ‘“The Biden administration’s suggestion that highly regulated bank fees are ‘junk’—or even illegal— misses the mark in my opinion. These fees are readily disclosed to consumers under federal law and according to a recent survey a large majority of respondents (8 out of 10) stated that their bank is transparent about their fees.”

For more information on the announcement above, click the links below:

• Biden's junk fee proposal 'misses the mark,' bankers say - Boston Business Journal (bizjournals.com)
• CFPB Issues Guidance to Halt Large Banks from Charging Illegal Junk Fees for Basic Customer Service | Consumer. Financial Protection Bureau (consumerfinance.gov)
• ABA pushes back on latest administration move on fees | ABA Banking Journal.
• Consumer Survey Consumers Happy and Competitive | American Bankers Association (aba.com)
• CFPB eyes account access, statement fees in new guidance | ABA Banking Journal.

Consumer Financial Protection Bureau Releases Data Sharing Rule

The Consumer Financial Protection Bureau (CFPB) unveiled a proposed data sharing rule yesterday, which would “prevent companies from form using personal financial data that consumers share to advance their own commercial interests.” The rule would also, among other provisions, implement Section 1033 of the Dodd-Frank Act and ban companies from charging their customers fees to access personal financial data. To read more about the rule, click here.

FDIC Proposes New Guidelines for Board Governance, Risk Management

The FDIC Board of Directors recently voted 3-2 to establish new guidelines for governance and risk management at covered institutions with at least $10 billion in consolidated assets or more. The vote was taken by a notational vote, meaning it was voted on by the FDIC Board of Directors without a meeting. 

Click on the links below for more information on the new guidelines:

• FDIC: Board Meeting - October 3, 2023
• FDIC proposes new guidelines for board governance, risk management at larger banks | ABA Banking Journal.