Publication

April 1, 2021Client Alert

Consumer Financial Protection Bureau Revokes COVID-19 Temporary Regulatory Relief Provided To Financial Services Providers

The Consumer Financial Protection Bureau (CFPB) handed down several measurers throughout 2020 in response to the COVID-19 pandemic. These measures granted temporary regulatory relief to financial service providers. CFPB announced recently an end to this relief.

Generally, the temporary relief measures allowed financial institutions flexibility with regulatory filings and compliance with consumer financial regulations, including the following:

  1. March 26, 2020, Statement on Bureau Supervisory and Enforcement Response to COVID-19 Pandemic – requiring CFPB be a signatory to loan modifications and reporting and appraisals and evaluations for real estate.
  2. March 26, 2020, Statement on Supervisory and Enforcement Practices Regarding Quarterly Reporting Under the Home Mortgage Disclosure Act – relaxing reporting requirements for HDMA data.
  3. March 26, 2020, Statement on Supervisory and Enforcement Practices Regarding CFPB Information Collections for Credit Card and Prepaid Account Issuers – removing citations and enforcement for failure to submit information relating to collections on credit cards and prepaid accounts.
  4. April 1, 2020, Statement on Supervisory and Enforcement Practices Regarding the Fair Credit Reporting Act and Regulation V in Light of the CARES Act – enacting a flexible supervisory and enforcement approach to compliance with FCRA during the pandemic.
  5. April 27, 2020, Statement on Supervisory and Enforcement Practices Regarding Certain Filing Requirements Under the Interstate Land Sales Full Disclosure Act (ILSA) and Regulation J – suspending supervisory and enforcement regarding delays in the filing of annual reports of activity and financial statements as specified in Regulation J.
  6. May 13, 2020, Statement on Supervisory and Enforcement Practices Regarding Regulation Z Billing Error Resolution Timeframes in Light of the COVID-19 Pandemic – relaxing citations and enforcement for creditor delays billing error resolutions.
  7. June 3, 2020, Statement on Supervisory and Enforcement Practices Regarding Electronic Credit Card Disclosures in Light of the COVID-19 Pandemic – relaxing citations and enforcement for failure to get consumers e-sign consent so long as oral consent was provided.

As of April 1, 2021, these temporary relief measures have been revoked. In addition, the CFPB also revoked one previously enacted policy, which was unrelated to the coronavirus, Bulletin 2018-01: Changes to Types of Supervisory Communications and replaced it with Bulletin 2021-01 announcing that the CFPB will discontinue use of Supervisory Recommendations. CFPB rescinded these measures due to its assessment that many financial institutions have improved operations, developed remote capabilities, and thus adjusted to the pandemic. 

If you have any questions regarding the CFPB April 1, 2021 policy rescissions, please contact Michael Best’s Banking & Financial Services Industry Group.

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