Page 6 - June 20, 2024 Bulletin

aRTiCLeS

CFPB Finalizing Rule on Personal presentation from the first session, which covered requirements
Financial Data Rights Under for FDIC-insured institutions’ use of FDIC official signs,
including digital media, is now available.
Section 1033 Read more: https://www.fdic.gov/resources/deposit-insurance/

The CFPB has issued a partial final rule on consumer data rights banker-webinar/index.html
under Section 1033 of the Consumer Financial Protection Act,
which “establishes minimum attributes a standard-setting body CFPB Warns Against Certain
must possess to receive CFPB recognition and to issue consensus Terms in Financial Service
standards when the full rule is finalized.” Contracts

The CFPB is finalizing certain provisions of its Required
Rulemaking on Personal Financial Data Rights (Personal The CFPB has released a circular that warns against unlawful or
Financial Data Rights rule), which, among other proposed unenforceable terms and conditions in contracts for consumer
provisions in the rule, sought to promote fair, open, and inclusive financial products or services. In a statement, the bureau said
industry standard-setting. The CFPB proposed that standards that many contracts include terms and conditions claiming to
adopted by CFPB-recognized standard setters might be used to limit consumer rights and protections. One such term is a general
facilitate implementation of a final Personal Financial Data Rights liability waiver, “which purports to fully insulate companies
rule. This rule revises and finalizes part of proposed § 1033.131 from suits even though most states have laws that create hosts of
(definitions) and all of proposed § 1033.141 (attributes a exemptions to these waivers.”
standard-setting body must demonstrate in order to be recognized Under the Dodd-Frank Act, “a representation or omission is
by the CFPB). Included with this rule is a step-by-step guide for deceptive if it is likely to mislead a reasonable consumer and
how standard setters apply for recognition and how the CFPB is material,” according to the CFPB. The bureau said that its
will evaluate applications.
examiners have identified several violations in contract terms and
The final rule is effective 30 days after date of publication in the conditions.
Federal Register.
“For example, the CFPB found that a respondent bank engaged
Read more: https://files.consumerfinance.gov/f/documents/cfpb_ in a deceptive practice under the [Dodd-Frank Act] when it
personal-financial-data-rights_final-rule_2024-06.pdf represented to consumers that because they signed a deposit
agreement including broad language directing the bank not to
NDBA, ABA, State Bankers contest legal process, consumers had waived their right to hold
Associations to OCC: Competition the bank liable for improperly responding to garnishment notices;
in fact, regardless of the language in the account agreement,
among State-Chartered and consumers had the right to challenge the garnishments,” it said.
National Banks is Vital to Read more: https://www.consumerfinance.gov/compliance/circulars/
Economy consumer-financial-protection-circular-2024-03/

NDBA joined the ABA and the 51 other state banking FDIC Finds VITA Sites Willing to
associations compelling the Office of the Comptroller of the
Currency (OCC) to defend “its nearly exclusive national bank Direct Unbanked to Financial
visitorial powers against encroachment by state authorities and Institutions
otherwise preserving the essential powers of national banks amid
a range of harmful and often conflicting state laws.” A new FDIC survey found most Volunteer Tax Assistance
Provider sites are willing to provide their unbanked clients with
Read more: https://www.aba.com/-/media/documents/letters-to- a list of local financial institutions that offer Bank On accounts,
congress-and-regulators/ltroccbankpreemption20240509.pdf even if the sites are not partnered with any institutions. VITA
sites offer free tax preparation services to low-income households.
Recent FDIC Signage Webinar Some sites partner with banks and other financial institutions
Slides Available to help the unbanked establish bank accounts to receive their
tax refunds, but not all sites seek out partnerships. The survey
On May 30, the FDIC held the first of four webinars for explored barriers to providing banking services at VITA sites.
bank staff and officers on its new rule governing the use of the Roughly a third of respondent sites with banking partners met
FDIC name and logo by financial institutions. The PowerPoint
their partners through an event or network, such as Bank On

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