Dealership responsibility to produce adverse action notices to consumers rejected for automotive financing and enhanced anti-discrimination protections were among approximately 100 recommendations an external task force made last week to the Consumer Financial Protection Bureau.
The CFPB charged the task force with identifying issues in existing consumer financial protection regulations and issuing guidance on how the agency can best educate consumers on credit markets and products. In its 798-page report, the four-member task force isolated key elements that consumer protection policy should focus on: the "consequences for inclusion and access" by underserved communities; avoiding harms to consumers in lieu of specifying how credit providers design and market their products; and modernizing the regulatory framework to adapt to shifting technology and consumer preference trends.
In a separate, 100-page report, the task force outlined its recommendations for the bureau, including:
- Improve research and develop policies that address the challenges of formerly incarcerated people, immigrants and people in rural communities.
- Research consumer reporting issues that arise in connection with a consumer's bankruptcy.
- Continue to increase dialogue with state regulators to bridge knowledge gaps and streamline regulation.
- Caution in restricting the use of nonfinancial alternative data.
- Clearer obligations of credit reporting agencies and credit data furnishers with respect to disputes under the Fair Credit Reporting Act.
- Periodic assessments of the accuracy and completeness of consumer credit reports.