[Federal Register Volume 86, Number 64 (Tuesday, April 6, 2021)]
[Rules and Regulations]
[Pages 17693-17694]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-06966]


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BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Parts 1005 and 1026


Rescission of Statement of Policy on Supervisory and Enforcement 
Practices Regarding Bureau Information Collections for Credit Card and 
Prepaid Account Issuers

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Rescission of statement of policy.

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SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is 
rescinding the Statement on Supervisory and Enforcement Practices 
Regarding Bureau Information Collections for Credit Card and Prepaid 
Account Issuers.

DATES: This rescission is applicable on April 1, 2021.

FOR FURTHER INFORMATION CONTACT: Zixta Q. Martinez, Division of 
Supervision, Enforcement, and Fair Lending, at (202) 435-7204. If you 
require this document in an alternative electronic format, please 
contact [email protected].

SUPPLEMENTARY INFORMATION: On March 26, 2020, the Bureau issued a 
statement entitled, ``Statement on Supervisory and Enforcement 
Practices Regarding Bureau Information Collections for Credit Card and 
Prepaid Account Issuers'' (Statement), regarding the Bureau's exercise 
of its supervisory and enforcement discretion under the Truth in 
Lending Act (TILA), Regulation Z, and Regulation E.\1\ Specifically, 
the Statement provided that the Bureau, until further notice, did not 
intend to cite in an examination or initiate an enforcement action 
against any entity for failure to submit to the Bureau certain 
information collections relating to credit card and prepaid accounts 
required by TILA, Regulation Z, and Regulation E.
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    \1\ https://files.consumerfinance.gov/f/documents/cfpb_data-collection-statement_covid-19_2020-03.pdf.
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    The Bureau hereby rescinds, as of April 1, 2021, the Statement and 
provides guidance on how entities should now meet the following 
information collections requirements relating to credit card and 
prepaid accounts:
     Annual submission of certain information concerning 
agreements between credit card issuers and institutions of higher 
education (and certain affiliated organizations), as required by TILA, 
15 U.S.C. 1637(r), and Regulation Z, 12 CFR 1026.57(d)(3);
     Quarterly submission of consumer credit card agreements, 
as required by TILA, 15 U.S.C. 1632(d)(2), and Regulation Z, 12 CFR 
1026.58(c);
     Collection of certain credit card price and availability 
information from a sample of credit card issuers under TILA, 15 U.S.C 
1646(b)(1) et seq.; and
     Submission of prepaid account agreements and related 
information required by Regulation E, 12 CFR 1005.19(b).
    The Statement expressed the Bureau's recognition of the impact of 
the COVID-19 pandemic on consumers and the operations of many financial 
institutions, the critical role played by credit card and prepaid 
account issuers in ensuring that consumers have access to credit and 
other funds, as well as the critical importance of this access in light 
of the dramatic effects of the pandemic on the finances of consumers. 
The Bureau therefore believed it was necessary to provide credit card 
and prepaid account issuers with flexibility and reduce their 
administrative burden to allow them to focus their attention on making 
sure consumers have access to credit and other funds. The Bureau has 
concluded that this tradeoff is no longer necessary. Since March 2020 
and over the course of the COVID-19 pandemic, financial institutions, 
including credit card and prepaid account issuers, have adjusted 
operations by, for example, shifting to a remote mode of operation and 
adding more robust remote operational capabilities. As States and other 
jurisdictions have rescinded and modified stay-at-home orders over the 
course of the pandemic, the Bureau has learned that many financial 
services entities have resumed some level of in-person operations. In 
many instances, combined with more robust remote capabilities, 
financial entities have demonstrated improved business continuity. 
Based on the Bureau's market monitoring, the Bureau believes that 
companies, including credit card and prepaid account issuers, have had 
sufficient time to adapt to the pandemic and should now be able to 
respond to consumers' need to access credit and other funds while 
complying with the data submission obligations under TILA, Regulation 
Z, and Regulation E without the flexibility afforded under the 
Statement. The Statement noted that entities should maintain records 
sufficient to allow them to make such delayed submissions and that 
entities could continue making otherwise required submissions 
notwithstanding the flexibility extended under the Statement. The 
Bureau notes that most of the financial entities subject to the noted 
information collections

[[Page 17694]]

requirements appear to be meeting them, choosing not to take advantage 
of the flexibility provided by the Statement. In addition, because the 
Statement did not create binding legal obligations on the Bureau or 
create or confer any substantive rights on external parties, it did not 
create any reasonable reliance interests for industry participants. The 
Bureau never intended the Statement to be permanent, and expressly 
noted in the Statement that at a later date, the Bureau would notify 
entities of when and how to submit information under these requirements 
and that entities should maintain records sufficient to allow them to 
make such delayed submissions pursuant to Bureau guidance. This Policy 
Statement provides that guidance.
    The Bureau hereby rescinds, as of April 1, 2021, the Statement and 
instructs all financial institutions required to file to do so as 
follows:
    Annual submission of certain information concerning agreements 
between credit card issuers and institutions of higher education (and 
certain affiliated organizations), as required by TILA, 15 U.S.C. 
1637(r), and Regulation Z, 12 CFR 1026.57(d)(3)
    Credit card issuers required to submit information pursuant to 15 
U.S.C. 1637(r) and 12 CFR 1026.57(d)(3) relating to agreements in 
effect in calendar year 2020 should do so by March 31, 2021. Issuers 
should also submit all delayed submissions for agreements in effect in 
calendar year 2019. The Bureau does not intend to cite in an 
examination or initiate an enforcement action against any entity who 
submits requisite information relating to agreements in effect in 
calendar year 2019 and 2020 by April 30, 2021.
    Quarterly submission of consumer credit card agreements, as 
required by TILA, 15 U.S.C. 1632(d)(2), and Regulation Z, 12 CFR 
1026.58(c)
    Credit card issuers required to submit information pursuant to 15 
U.S.C. 1632(d)(2) and 12 CFR 1026.58(c) should do so by April 30, 2021 
beginning with the submission relating to the first calendar quarter of 
2021 and also include all delayed submissions from all cycles during 
which the Statement was in effect (i.e., all four quarters of 2020). 
The Bureau does not intend to cite in an examination or initiate an 
enforcement action against any entity who makes any requisite delayed 
submissions by April 30, 2021.
    Collection of certain credit card price and availability 
information from a sample of credit card issuers under TILA, 15 U.S.C 
1646(b)(1) et seq.
    Credit card issuers required to submit information pursuant to 15 
U.S.C 1646(b)(1) et seq. should do so as required by TILA beginning 
with the survey cycle that begins on July 31, 2021. The Bureau intends 
to provide affirmative confirmation to issuers included in the Bureau's 
sample for the survey cycles beginning July 31, 2020 and January 31, 
2021 by April 30, 2021. The Bureau does not intend to cite in an 
examination or initiate an enforcement action against any entity who 
makes any requisite delayed submissions relating to the July 31, 2020 
and January 31, 2021 cycles by August 13, 2021.
    Submission of prepaid account agreements and related information 
required by Regulation E, 12 CFR 1005.19(b)
    Prepaid account issuers required by Regulation E to submit 
agreements and related information should ensure, by April 30, 2021, 
that any such information on file with the Bureau is current and 
complete through March 31, 2021. Thereafter, issuers must resume making 
submissions on a rolling basis in accordance with the regulation. The 
Bureau does not intend to cite in an examination or initiate an 
enforcement action against any entity who makes any requisite 
submissions by April 30, 2021.

Regulatory Requirements

    The Statement constituted a general statement of policy exempt from 
the notice and comment rulemaking requirements of the Administrative 
Procedure Act (APA). It was intended to provide information regarding 
the Bureau's general plans to exercise its supervisory and enforcement 
discretion and did not impose any legal requirements on external 
parties, nor did it create or confer any substantive rights on external 
parties that could be enforceable in any administrative or civil 
proceeding. This rescission likewise is a general statement of policy 
exempt from the notice and comment rulemaking requirements of the APA. 
It is intended to provide information regarding the Bureau's general 
plans to exercise its supervision and enforcement discretion and does 
not impose any legal requirements on external parties or create or 
confer any substantive rights on external parties that could be 
enforceable in any administrative or civil proceedings. No notice of 
proposed rulemaking was originally required in issuing the Statement, 
and it is not required in issuing this rescission. The Regulatory 
Flexibility Act also does not require an initial or final regulatory 
flexibility analysis for this rescission. The Bureau has also 
determined that the rescission of the Statement does not impose any new 
or revise any existing recordkeeping, reporting, or disclosure 
requirements on covered entities or members of the public that would be 
collections of information requiring approval by the Office of 
Management and Budget under the Paperwork Reduction Act.

    Dated: March 29, 2021.
David Uejio,
Acting Director, Bureau of Consumer Financial Protection.
[FR Doc. 2021-06966 Filed 4-5-21; 8:45 am]
BILLING CODE 4810-AM-P