Federal Banking Agencies Issue Guidance on FRB Proposal to Repeal Credit Practices Rules

The Board of Governors of the Federal Reserve System ("FRB") issued a request for comment on its proposal to repeal the credit practices rules in Regulation AA (Unfair or Deceptive Acts or Practices). Additionally, the FRB, Office of the Comptroller of the Currency, the CFPB, the FDIC, and National Credit Union Administration issued guidance regarding the repeal.

The guidance clarifies that the repeal of credit practices rules applicable to banks, savings associations, and federal credit unions does not mean that the unfair or deceptive acts or practices described in those former regulations are permissible. While the credit practices rules for these depository institutions are being repealed as a consequence of Dodd-Frank, the guidance states that the Federal Trade Commission's Credit Practices Rule remains in effect.

Comments on the proposed repeal must be submitted within 60 days from the publication in the Federal Register, which is expected shortly.