Preemption

CBA supports strong, uniform federal standards for federally chartered institutions. Federal preemption is a legal doctrine that holds a federal law governs all claims that fall within it and offers a vital safeguard against unwarranted and inconsistent state interferences with the national economy. In the banking industry, preservation of uniform federal standards has benefited consumers of financial products by making a wider range of banking products and services available to more consumers and, overall, lowering the costs of credit and other banking products and services. In turn, the banking system benefits from greater economies of scale and improved risk management.
  • August 15, 2014
    Is $20 Billion the New $10 Billion? The retail banking industry is very familiar with banks taking steps not to pass the $10 billion asset mark in order to avoid the associated massive regulatory and compliance costs. Consider Cathy Nash who sold Citizens Republic Bancorp when it reached $9.7 billion in assets to FirstMerit in 2012. Now there is another reason – the cut in interchange fees. The...
  • August 8, 2014
    CFPB Asks about Agreements with Financial Institutions On Wednesday, August 6, 2014, the CFPB sent a letter to the 14 "Big Ten" universities urging them to disclose their agreements with financial institutions which result in providing financial products to students on campus. According to a Bureau blog post , The letter was sent to follow up an effort the CFPB began in 2013 to collect...
  • July 18, 2014
    CBA Submits Comments to Privacy Notice Proposal On Monday, July 14, 2014, CBA and other industry trades submitted a comment letter to the CFPB on its proposal to streamline annual privacy notices under Regulation P. While the proposal would create an alternative method for delivering annual privacy notices, the alternative is so circumscribed it has little practical value to consumers or...
  • June 27, 2014
    CFPB Orders GE Capital to Pay $225 Million to Consumers On Thursday, June 19, 2014, the CFPB ordered GE Capital, now known as Synchrony Bank, to pay $225 million to consumers who were “harmed by illegal and discriminatory credit card practices.” The Bureau allocated $56 million to approximately 638,000 consumers who were “subjected to deceptive marketing practices,” and $169 million to roughly...
  • April 8, 2014
    Dear Chairman Hensarling and Ranking Member Waters: The Consumer Bankers Association (CBA)1 commends you for calling today’s hearing to examine the current regulatory landscape of our financial services industry and appreciates your continued oversight of the rules and regulations governing financial institutions. Even as the U.S. banking industry faces an unprecedented regulatory environment,...
  • April 2, 2014
    RE: Title IV Program Integrity and Improvement – Negotiated Rulemaking Dear Ms. Moran: The Consumer Bankers Association (CBA) and the American Bankers Association (ABA) (collectively, the Associations) appreciate the opportunity to submit our comments on the Department of Education’s (DOE) current draft regulation, issued pursuant to a negotiated rule making process that addresses matters related...
  • March 21, 2014
    CFPB Report on Debt Collection Complaints On Thursday, March 20, 2014, the CFPB issued a report outlining numerous unverified consumer complaints it received about the debt collection market. According to the Bureau, as many as one third of consumers who filed complaints on debt collection activities did not owe the debt in question. Other top complaints included use of aggressive communication...
  • February 26, 2014
    Washington, D.C. (February 26, 2014) – Today, the American Bankers Association, the Consumer Bankers Association, the Financial Services Forum, Financial Services Roundtable, the Independent Community Bankers of America, the Institute of International Finance, the Mortgage Bankers Association, the Property Casualty Insurers Association of America, the Securities Industry and Financial Markets...
  • February 26, 2014
    Washington, D.C. (February 26, 2014) – Richard Hunt, president and CEO of the Consumer Bankers Association, issued the following statement in response to House Ways and Means Committee Chairman Dave Camp’s (R-MI) proposed tax legislation: “Chairman Camp's legislation sets a dangerous precedent by singling out an industry for additional taxation. However, it goes even further by picking winners...
  • January 17, 2014
    Deposit Advance Products We learned this week Regions Financial, U.S. Bank, Wells Fargo and Fifth Third have decided to phase out their Deposit Advance Products. This development was a point of discussion during my meeting with CFPB Director Cordray on January 16, 2014. The vast majority of consumers using deposit advance products do so responsibly under transparent and fully disclosed terms...

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