Credit Unions Take Note: CFPB Card Agreements Due May 2

Credit Unions Take Note: CFPB Card Agreements Due May 2
Posted: Apr 15, 2016
Comments: 0
Author: Lou Grilli

Summary: Any issuer of credit must submit their current credit card (consumer) agreements to the Consumer Financial Protection Bureau (CFPB) via email to no later than May 2. This requirement was in effect in the past, and was suspended, but has been reinstated. This is a quarterly submission and the next due dates are August 1 and October 31. The August 1 deadline applies to agreements offered to new customers on June 30, while the October 31 deadline applies to agreements offered to new customers on September 30.

Regulation Z and the Truth in Lending Act

Regulation Z, which implements the Truth In Lending Act, contains several requirements for issuers. It require issuers of credit cards to post on their public website a complete set of the consumer credit card agreements that are offered to consumers, and to make these agreements available to cardholders. It also created a requirement for the issuer to submit the same agreements as the one posted on the issuers website to be submitted to the CFPB, which in turn maintains a public database on its website of these credit card agreements from nearly 450 card issuers. Issuers must submit agreements on a quarterly basis.

In 2015, the CFPB set out to streamline the submission process. In order to reduce the burden on issuers during the transition period, the requirement for quarterly submission was suspended for the April 30, 2015; July 31, 2015; October 31, 2015; and January 31, 2016 submission dates. The requirement for cardholder disclosure and posting on the issuer’s website was not suspended.

Regulation Z provides that card issuers shall submit their currently-offered agreements “in the form and manner specified by the Bureau.”  The CFPB states that the new method of submission is...

“emailing us links to (or webpage addresses for) the consumer credit card agreements that you post on your public website. Current regulations require you to post on your public website a complete set of the consumer credit card agreements that you offer to consumers. (§ 1026.58(d).) The agreements you have to post on your public website are the same as those you need to submit to the Bureau. As a result, sending us the relevant links or webpage addresses is the easiest and most straightforward way to meet your submission requirement.

Include in your email the name and address of the issuer that offers the product, plus a unique identifying number for the issuer such as a DUNS or RSSD number. Sending us that identifying information plus links or webpage addresses to your properly posted agreements is sufficient to meet all your submission obligations under § 1026.58(c). No other information is required.

(Comment 58(c)(1)-3.) Although the Bureau believes that issuers will generally find that emailing agreement links or webpage addresses to the Bureau is the fastest and simplest way to submit the required agreements, you may also comply by emailing us pdf copies of all the agreements you offered to the public as of the end of March 2016. Alternatively, you may email us the agreements and information identified in § 1026.58(c)(1)(ii), (iii), and (iv). Whatever submission method you choose, remember to include your identifying information.”

If you are a financial institution with less than 10,000 open credit card accounts as of the last business day of the calendar quarter, you are exempt from this requirement.

Rate this article:
No rating
Lou Grilli

Lou GrilliLou Grilli

Lou is the AVP of Product Development & Thought Leadership at Trellance and is responsible for providing leadership to the organization on emerging payments and industry trends, as well as managing the product portfolio.

Other posts by Lou Grilli

Full biography , Contact author

Please login or register to post comments.


Featured Stories