In 2011, the Consumer Financial Protection Bureau (CFPB) issued interim final rules (IFRs) in accordance with the Dodd-Frank Act’s general transfer of rulemaking authority. At the time the law was issued, it handed the CFPB authority to make rules that affect the financial industry. Last month, the CFPB finally adopted the final rule making the previous interim rules law.
After the passage of Dodd-Frank, the CFPB assumed rulemaking authority for 14 federal consumer financial protection laws, which include the ECOA, EFTA, FCRA, FDCPA, GLBA, HMDA, RESPA, and TILA. The 2011 law removed authority from the Federal Reserve and other federal agencies and turned it over to the CFPB. In implementing the 14 laws, the CFPB took the existing regulations that implement those laws and republished them in the Federal Register under Title 12 of the Code of Federal Regulations. Those IFRs contained technical changes to reflect the transfer of authority and other changes mandated by Dodd-Frank but did not add any new substantive obligations to the existing regulations. The CFPB’s final rule summarily adopts all 14 IFRs as final.
There were more than 100 comments submitted by industry trade associations, consumer groups, creditors, and other interested parties concerned over whether the CFPB was bound by rules issued by previous rulemaking agencies. The CFPB classified the comments as generally falling into four broad categories: (1) typographical or grammatical errors; (2) the effect on existing Internet links; (3) requests that the CFPB confirm that it is bound by existing informal advisory opinions issued by predecessor agencies; and (4) requests for various substantive changes to the regulations.
In the Supplementary Information, the CFPB explained that it has “considered all of the comments received and has decided to adopt the December 2011 IFRs as final without change, subject to intervening final rules published by the Bureau.” Of particular interest is the CFPB’s response to comments regarding the treatment of informal advisory opinions. The Bureau explains that it had already addressed the matter before the December 2011 IFRs by issuing a notice in the Federal Register in July of 2011. In that notice, the CFPB provided a list of enforceable rules and orders, noting that it “will give due consideration to the application of other written guidance, interpretations, and policy statements issued prior to July 21, 2011, by a transferor agency in light of all relevant factors . . .”
