ICBA urges CFPB to preempt state TILA law

The Consumer Financial Protection Bureau was incorrect in determining that the Truth in Lending Act does not preempt a recently enacted New York State disclosure law, ICBA said in a new comment letter.

Background: The New York law applies TILA-like disclosures to commercial loans, but its annual percentage rate calculation differs from TILA’s. The CFPB preliminarily determined that TILA does not preempt the New York law because TILA governs consumer credit while the state law governs commercial credit.

ICBA Position: In its comment letter, ICBA said:

  • Precedence dictates that a different definition of a term used in TILA creates a contradictory construct that requires preemption.

  • This contradiction is significant—even if one law governs commercial credit and the other consumer credit—because APR is a widely used and understood term and imposing two APR requirements would be a public disservice.

ICBA Recommendation: ICBA concluded by recommending that the CFPB narrowly preempt the New York law and ask the state to use different terminology that does not conflict with TILA.

READ MORE


Previous News

  • ICBA, groups to CFPB: Seek input on review of credit card late fee safe harbor

    ICBA and other groups called on the Consumer Financial Protection Bureau to comply with the Small Business Regulatory Enforcement Fairness Act as it considers reducing or eliminating the safe harbor fee that credit card issuers may charge to avoid scrutiny of their fees as unreasonable.

    Image

    Jan 23, 2023

  • Senators echo concerns with CDFI application change

    Senate Banking Committee members Mark Warner (D-Va.) and Mike Crapo (R-Idaho) encouraged the Treasury Department to consider all comments responding to its proposal to revise Community Development Financial Institution certification application and reporting requirements.

    Image

    Jan 23, 2023

  • FHFA announces Fannie, Freddie fee updates

    Fannie Mae and Freddie Mac will reduce their upfront fee for commingled securities to 9.375 basis points after announcing a 50-point fee last year, the Federal Housing Finance Agency announced.

    Image

    Jan 20, 2023


Related News Taxonomy