OCC and CFPB Withdraw List of Regulations

Two regulators have withdrawn rules following criticism and in response to a directive from President Trump to cut back on regulation.

The Office of the Comptroller of the Currency (OCC) issued an interim final rule to repeal its bank merger review regulation and reinstate its streamlined process for reviewing merger applications.

The previous final rule removed the expedited review process for bank mergers, so mergers could no longer be automatically approved 15 days after the comment period unless the OCC actively removed the filing from expedited consideration.

Although the rule was intended to ensure bank mergers received proper scrutiny, Republican lawmakers filed a lawsuit to overturn it, arguing it harmed community and regional banks' ability to merge and could increase consolidation by reducing competition.

The newly introduced interim rule reverses the policy, bringing back automatic approvals.

Meanwhile, President Trump signed a resolution into law overturning the Consumer Financial Protection Bureau’s (CFPB) rule on overdraft fees.

The rule, which required banks with over $10 billion in assets to either cap overdraft fees at $5, align them with actual costs, or treat them as loans under the Truth in Lending Act, has now been repealed.

The withdrawal is part of a wider push by the CFPB to rescind dozens of guidance documents, following President Trump’s directive to cut back on regulation.

For example, the CFPB has said it will no longer enforce a rule aimed at credit card lenders offering buy now, pay later products, stating that it is focusing its resources elsewhere.

It also rescinded guidance on how it defines abusive practices, a reminder to debt collectors about rules on collecting medical debt and an opinion urging large banks and credit unions to respond promptly to customer account inquiries.