[Federal Register Volume 90, Number 93 (Thursday, May 15, 2025)]
[Proposed Rules]
[Page 20569]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-08645]
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CONSUMER FINANCIAL PROTECTION BUREAU
12 CFR Part 1027
[Docket No. CFPB-2025-0002]
RIN 3170-AB23
Prohibited Terms and Conditions in Agreements for Consumer
Financial Products or Services (Regulation AA); Withdrawal of Proposed
Rule
AGENCY: Consumer Financial Protection Bureau.
ACTION: Proposed rule; withdrawal.
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SUMMARY: The Consumer Financial Protection Bureau (Bureau or CFPB) is
withdrawing its Notice of Proposed Rule: Prohibited Terms and
Conditions in Agreements for Consumer Financial Products or Services
(Regulation AA) (NPRM). The Bureau has determined that legislative
rulemaking is not necessary or appropriate at this time to address the
subject matter of the NPRM. The Bureau will not take any further action
on the NPRM.
DATES: The notice of proposed rulemaking is withdrawn as of May 15,
2025.
ADDRESSES: The docket for this withdrawn proposed rule is available at
https://www.regulations.gov/document/CFPB-2025-0002-0001.
FOR FURTHER INFORMATION CONTACT: George Karithanom, Regulatory
Implementation and Guidance Program Analyst, Office of Regulations, at
202-435-7700 or https://reginquiries.consumerfinance.gov/. If you
require this document in an alternative electronic format, please
contact [email protected].
SUPPLEMENTARY INFORMATION: The Bureau is withdrawing the notice of
proposed rulemaking, Prohibited Terms and Conditions in Agreements for
Consumer Financial Products or Services (Regulation AA), published on
January 14, 2025, 90 FR 3566. The proposed rule would have prohibited
certain contractual provisions in agreements for consumer financial
products or services.
The Bureau is withdrawing the proposed rule in light of changes in
and updates to its policies, agenda, and objectives. The Bureau is re-
evaluating the need for this proposed rule's prohibition on the use of
certain contractual provisions that limit expression or purport to
waive substantive consumer legal rights and protections, or their
remedies, under State or Federal law. Specifically, as the NPRM
acknowledges, this proposed rule is largely duplicative of the Federal
Trade Commission's Credit Practices Rule. Given this duplication and
the Bureau's policy of erring on the side of limiting regulatory
burdens on the American people, the Bureau believes it is necessary to
withdraw this NPRM.
In addition, the Bureau received comments warranting withdrawal and
further consideration of the merits of the proposed rule, including
arguments that the Bureau lacks authority to adopt the proposed rule.
In light of these comments, the Bureau believes it necessary to
withdraw the proposed rule pending further consideration of whether the
Bureau has the authority to issue it.
Authority and Issuance
For each of these independently sufficient reasons, the Bureau is
withdrawing the proposed rule titled, ``Prohibited Terms and Conditions
in Agreements for Consumer Financial Products or Services (Regulation
AA),'' published in the Federal Register on January 14, 2025.
Russell Vought,
Acting Director, Consumer Financial Protection Bureau.
[FR Doc. 2025-08645 Filed 5-14-25; 8:45 am]
BILLING CODE 4810-AM-P