The Consumer Financial Protection Bureau (CFPB or Bureau) issues this Compliance Bulletin to provide guidance to covered persons and service providers regarding fee assessments for pay-by-phone services (phone pay fees) and the potential for violations of sections 1031 and 1036 of the Dodd-Frank Wall Street Reform and Consumer Protection Act’s (Dodd-Frank Act) prohibition on engaging in unfair, deceptive, or abusive acts or practices (collectively, UDAAPs) when assessing phone pay fees.
Federal Agency Interpretation
The Board, FDIC, and OCC (collectively, the agencies) are issuing final guidance on managing risks associated with third-party relationships. The final guidance offers the agencies’ views on sound risk management principles for banking organizations when developing and implementing risk management practices for all stages in the life cycle of third-party relationships. The final guidance states that sound third-party risk management takes into account the level of risk, complexity, and size of the banking organization and the nature of the third-party relationship.
The Bureau of Consumer Financial Protection is rescinding the Statement of Policy Regarding Prohibition on Abusive Acts or Practices.
Section 1031(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) provides that the Bureau of Consumer Financial Protection (Bureau) may use its supervisory and enforcement authority, among other things, to prevent a covered person or service provider from committing or engaging in an unfair, deceptive, or abusive act or practice under Federal law in connection with any transaction with a consumer for a consumer financial product or service, or the offering of a consumer financial product or service.
The OCC is rescinding its supervisory guidance entitled ‘‘Guidance on Supervisory Concerns and Expectations Regarding Deposit Advance Products’’ and OCC Bulletin 2013–40 (collectively, Guidance), which address the OCC’s expectations regarding the offering of deposit advance products by national banks and federal savings associations (collectively, banks).
The OCC is issuing final supervisory guidance entitled ‘‘Guidance on Supervisory Concerns and Expectations Regarding Deposit Advance Products’’ (Guidance), which addresses safe and sound banking practices and consumer protection in connection with deposit advance products.
The FDIC is issuing final supervisory guidance entitled ‘‘Guidance on Supervisory Concerns and Expectations Regarding Deposit Advance Products’’ (Guidance), which addresses safe and sound banking practices and consumer protection in connection with deposit advance products.
The OCC is proposing guidance on safe and sound banking practices and consumer protection in connection with deposit advance products. The OCC is also withdrawing its proposed guidance on Deposit-Related Consumer Credit Products published on June 8, 2011.
Pursuant to the Consumer Financial Protection Act of 2010 (‘‘CFP Act’’),/1/ the Secretary of the Treasury designates July 21, 2011, as the date for the transfer of functions to the Bureau of Consumer Financial Protection (‘‘CFPB’’). On this ‘‘designated transfer date,’’ certain authorities will transfer from other agencies to the CFPB, and the CFPB will be able to exercise certain additional, new authorities under the CFP Act and other laws.