The Fed issued a request for comment on a proposal to repeal Regulation AA, the regulation governing unfair and deceptive practices by banks. The repeal was required by the Dodd-Frank Act, which transferred rulemaking authority for certain federal consumer financial laws to the CFPB. In conjunction with the repeal, the CFPB, the FDIC, the NCUA, and the OCC collectively issued joint-guidance clarifying that the repeal is not indicative of the prohibited practices under Reg AA now being permissible.
Comments on the Fed’s proposal are due by October 27, 2014.
The repeal of Reg AA is unlikely to substantively impact the banking industry in light of the CFPB’s broad authority governing “unfair, deceptive and abusive” acts and practices.