NBPCA Government Update: Arbitration Rule Impact, CRA and More
October 16, 2017
The NBPCA Government Update is the best way for members to remain up-to-date on the latest policy developments in Washington and around the country. Some highlights from the update are below, but be sure to log-in to the member section of the NBPCA website to read the Government Update in full.
The NBPCA is continuing to monitor the progress of Senate Joint Resolution 47 and House Joint Resolution 111. If passed, these bills would repeal the Consumer Financial Protection Bureau’s (CFPB) arbitration rule through the Congressional Review Act (CRA). Congress needs to pass these bills within 60 legislative days of the rule’s finalization, but there is a lot on Congress’s agenda between now and the November deadline.
Recently, the Office of the Comptroller of the Currency (OCC) issued a report that finds the rule would likely result in increased costs for consumers who want credit. In an earlier statement, Acting Comptroller of the Currency Keith Noreika voiced his concern with the rule:
“Ultimately, the rule may have unintended consequences for banking customers in the form of decreased availability of products and services, increased related costs, fewer options to remedy consumer concerns, and delayed resolution of consumer issues.”
Outside the Beltway, the NBPCA continues to monitor an Illinois law that makes permits the state to collect unclaimed property on consumers’ payroll cards after one year. Such a law may negatively impact low and moderate-income individuals who receive their earnings through these prepaid cards. Payroll cards are becoming more popular than paper checks. It’s estimated that by 2022, 8 million people will use payroll cards to receive their wages—an increase from 5.9 million in 2017. Next, the new law redefines stored value cards (open loop gift cards) and includes an escheatment period of five years under the law for stored value cards. Lastly, the new law includes a requirement that it apply retroactively for a period of 5 years.
While there is certainly a lot to keep track of in our complex policy environment, the NBPCA is committed to providing members with critical information and analysis to facilitate informed business decisions.