The American Bankers Association today expressed support for two House bills, one seeking to clarify standards for unfair, deceptive, and abusive acts and practices enforcement actions brought by the CFPB, and the other requiring the Federal Reserve to fully examine the economic effects of revising Regulation II to lower the cap on debit card interchange.
The Rectifying UDAAP Act, sponsored by Rep. Andy Barr (R-Ky.), would clearly define the CFPB’s authority concerning UDAAP actions and would rein in the bureau’s overly aggressive stance on “abusive” acts or practices by requiring it to prove intentional misconduct, ABA said in a letter in support for the legislation. “This bill would also make clear that the bureau’s UDAAP authority does not extend to discriminatory practices, which are already governed by our nation’s anti-discrimination laws,” ABA said.
The Secure Payments Act, sponsored by Rep. Blaine Luetkemeyer (R-Mo.), would require the Fed to measure the effect on consumers of lowering the debit interchange cap, including access to affordable debit accounts, and a review of the primary beneficiary of the interchange cap. In its letter, ABA said the Fed’s proposal to slash debit interchange fees is part of a tsunami of new federal regulations that would have tangible, and potentially severe, consequences for banks, their customers and their communities. “As required by the Secure Payments Act, the Fed should stop and conduct a rigorous study of this proposal’s impacts and the cumulative impacts of the tsunami of newly finalized and pending regulations from the federal banking agencies,” the association said.
