Confusion After Clarity: The CFPB’s November Bulletin on Consumer Authorizations for Preauthorized Electronic Fund Transfers

In late November of last year, the CFPB issued a bulletin covering “Requirements for Consumer Authorizations for Preauthorized Electronic Fund Tranfsers” (or CFPB Compliance Bulletin 2015-06 if you’re short on time).

During its time of conducting investigations and meeting with consumer groups, the CFPB had noticed “that some entities may not fully comply with the requirements imposed by EFTA and Regulation E,” and that “others may be uncertain of their obligations under EFTA and Regulation E, as well as the intersections between Regulation E and the…[E-Sign Act].”

Bulletins from the CFPB often function as rule-making, even though bulletins aren’t technically the way the CFPB conducts rule-making. Both bulletins and consent orders, though, should be viewed by all in the industry as the “writing on the wall,” so to speak. They show the agency’s current line of thinking, and give those companies in the debt industry a map of compliance.

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