ARLINGTON, Va. (January 11, 2022)—The Consumer Financial Protection Bureau (CFPB) today released a proposed rule that would create new reporting requirements for supervised, non-depository financial institutions on certain contractual terms and conditions (i.e., arbitration agreements). This follows the release of a proposed rule in December that would create a registry of covered non-depository financial institutions subject to certain enforcement orders.
In response to these two proposals, Online Lenders Alliance Policy Director Michael Day issued the following statement:
“Both of these proposals are suspect at best. The valid need and benefit for either of these new registries is dubious, but more concerning is the fact that they may go beyond the Bureau’s legislative and supervisory jurisdiction.
“There are also serious questions surrounding the Bureau’s true intent with these efforts. At a minimum, the Bureau’s declared benefits and rationale for these registries are undermined when you consider that a CFPB-labeled ‘repeat offender’—particularly one that just received the largest enforcement penalty in Bureau history—will not appear in either of these registries.
“The Online Lenders Alliance will be submitting comments in response to these proposed rules highlighting their adverse effects on innovation and the expansion of financial products and services by fintech firms that have benefitted millions of consumers.”
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About The Online Lenders Alliance
The Online Lenders Alliance (OLA) is the first trade association in FinTech. OLA is focused on credit inclusion, bringing together a diverse group of innovative companies who share a common goal: to serve hardworking Americans who deserve access to trustworthy credit. Our members are entrepreneurs, publicly-traded companies, lenders, credit bureaus, advertisers, lead generators, compliance professionals, and software developers who are leveraging technology to responsibly improve consumers’ financial health. Consumer protection is our top priority and OLA members abide by a rigorous set of Best Practices and Code of Conduct to ensure consumers are fully informed and fairly treated. For more information, please visit www.onlinelendersalliance.org.