It’s a red-letter day when a cumbersome process is retired for the new and improved. The CFPB has recognized the glitches with the portion of Regulation Z that requires credit card issuers to post their open-end consumer credit card submission agreements on their websites and to submit a copy of those agreements to the CFPB on a quarterly basis. [12 CFR 1026.58(c)] At present, card issuers submit copies of their agreements manually by email. CFPB staff members then manually review, catalog, and upload the new or revised agreements to the CFPB’s website and remove outdated agreements.
New Credit Card Submission Agreement Rules
The CFPB is now working to develop a more streamlined and automated electronic submission system that would allow card issuers to upload agreements directly to the CFPB’s website.
While this development is underway, the CFPB is proposing to temporarily suspend the requirement that you submit your credit card agreements for a period of one year (four quarterly submissions).
Proposed Operational Change
Comments were due March 13, 2015. The proposal would suspend the submission of credit card agreements to the CFPB due on the first business day on or after the following dates: April 30, 2015; July 31, 2015; October 31, 2015; and January 31, 2016. Beginning with the submission due on the first business day on or after April 30, 2016, you would resume your submission on a quarterly basis. The CFPB will provide technical instructions for the submissions prior to that date.
Requirements Not Affected by the Proposed Rule
This proposal does not affect the requirement that you post a copy of your card agreement on your own website under 12 CFR 1026.58(d). The proposed rule also does not affect the annual submission requirement for college credit card agreements and related data under [12 CFR 1026.57(d)] and the biannual submission of credit card pricing and availability information required by 15 U.S.C. 1646(b).
Proposed Effective Date
The CFPB intends to make this temporary suspension effective at the time of issuance of the final rule.
Jane Pannier is senior vice president and in-house counsel for AffirmX LLC, a developer of an innovative remote compliance review solution. Ms. Pannier is also SVP of AdvisX, a CUSO that specializes in using technology to more effectively deliver consulting services to financial institutions.