Payday, vehicle title and some high cost installment loans; Delay of the date of compliance; Correct the changes

0

B-331163

July 1, 2019

The Honorable Mike Crapo
President
The Honorable Sherrod Brown
Ranking Member
Banking, Housing and Urban Affairs Committee
United States Senate

The Honorable Maxine Waters
President
The Honorable Patrick McHenry
Ranking Member
Financial Services Committee
House of Representatives

Material: Consumer Financial Protection Bureau: breakdown assistance, vehicle title and some high cost installment loans; Delay of the date of compliance; Correct the changes

Pursuant to Section 801 (a) (2) (A) of Title 5 of the United States Code, here is our report on a major rule promulgated by the Bureau of Consumer Financial Protection (Bureau) entitled “Payday, Vehicle Title, and Certain High – Installment loans; Delay of the date of compliance; Correct the changes ”(RIN: 3170-AA95). We received the rule on June 17, 2019. It was published in the Federal Register as a final rule; delay in the date of compliance; correcting changes on June 17, 2019. 84 Fed. Reg. 27907. The effective date of the rule is August 16, 2019.

The final rule delays the August 19, 2019 compliance date for the mandatory underwriting provisions of the regulations promulgated by the Bureau in November 2017 governing payday loans, vehicle title and certain high-cost installment loans. Compliance with these provisions is delayed for 15 months, until November 19, 2020. According to the Bureau, it is also making certain compliance changes and corrections to correct several administrative and non-substantial errors that it identified in the November 2017 rule. .

Attached is our assessment of the Bureau’s compliance with the procedural steps required by Articles 801 (a) (1) (B) (i) to (iv) of Title 5 with respect to the rule. If you have any questions about this report or would like to contact the GAO officials responsible for valuation work related to the settlement subject matter, please contact Janet Temko-Blinder, Deputy General Counsel, at (202) 512-7104.

sign

Shirley A. Jones

Deputy legal director

Pregnant

cc: Daniel Kanter
Lawyer, Legal Division
Consumer Financial Protection Bureau

PREGNANT

REPORT UNDER 5 USC § 801 (a) (2) (A) ON A MAJOR RULE

ISSUED BY THE

Consumer Financial Protection Bureau

ENTITLED

“Payday, vehicle title and some high cost installment loans;
Delay of the date of compliance; Correct the changes »

(RIN: 3170-AA95)

(i) Cost-benefit analysis

In developing this rule, the Bureau of Consumer Financial Protection (Bureau) considered the potential benefits and costs as required by Section 1022 (b) (2) (A) of the Dodd-Frank Act. 12 USC § 5512 (b) (2) (A). The Bureau explained that the annualized quantifiable benefits and costs of rescinding the mandatory underwriting provisions of the 2017 Final Rule are detailed in the section 1022 (b) (2) analysis in its review notice. of the draft regulation (NPRM review). 84 Fed. Reg. 4252, 4285-4294 (February 14, 2019). Under this rule to delay the August 19, 2019 compliance date for mandatory underwriting arrangements, the Bureau declares that the annualized benefits and costs will be realized for a period of 15 months. Further, the Bureau states that the unquantified benefits and costs are described in the analysis of Article 1022 (b) (2) of the NPRM Review, and that these benefits and costs will also be realized for 15 months. The Bureau further determined that this rule will have minimal effects on deposit-taking institutions and credit unions with assets of less than $ 10 billion. Finally, the Bureau concluded that postponing the compliance date would not reduce consumers’ access to consumer financial products and services, and that it could increase access for all consumers by delaying the timing of consumer finance. Affected companies are implementing the changes to comply with the mandatory underwriting provisions of the 2017 Final Rule.

(ii) Agency actions relating to the Regulatory Flexibility Act (RFA), 5 USC §§ 603-605, 607 and 609

The Bureau concluded that the rule will not have a significant economic impact on a significant number of smaller entities and that a tender analysis is not necessary.

(iii) Agency Actions Relevant to Sections 202-205 of the Unfunded Mandates Reform Act 1995, 2 USC §§ 1532-1535

As an independent body, the Bureau is not subject to the Act.

(iv) Other relevant information or requirements under laws and decrees

Administrative Procedure Act, 5 USC §§ 551et seq.

On February 14, 2019, the Bureau published in the Federal Register its review NPRM, as well as a notice indicating whether it should postpone the date for bringing these provisions into conformity (NPRM delay). 84 Fed. Reg. 4252; 84 Fed. Reg. 4298. The comment period for the NPRM Delay ended on March 18, 2019, and the Bureau received approximately 150 comment letters from individuals, consumer activity groups, a group of attorneys general, depositary lenders. and non-depositories, from tribal governments, regional business associations, service providers, the Small Business Administration Advocacy Office, state government officials from the legislative and executive branch, and others. The Bureau has considered all comments submitted in response to this rule, provided brief summaries of the relevant comments and provided responses in this final rule.

Red Tape Reduction Act (PRA), 44 USC §§ 3501-3520

The Bureau determined that this rule would not impose any new record keeping, reporting or disclosure requirements on members of the public that would constitute collections of information requiring approval under the PRA.

Statutory authorization of the rule

The authority cited is 12 USC §§ 5511, 5512, 5514 (b), 5531 (b), (c), (d) and 5532.

Executive Decree No. 12,866 (Planning and Regulatory Review)

As an independent body, the Bureau is not subject to the decree.

Executive Decree No. 13132 (federalism)

As an independent body, the Bureau is not subject to the decree.

Leave A Reply

Your email address will not be published.