The CFPB published in the Federal Register a proposed rule defining larger participants of the student loan servicing market. The definition of student loan servicing would cover, among other things, the servicing of Federal and private student loans. The CFPB also proposes tests to identify larger participants of the market.
Comments are due May 28, 2013.
The CFPB is amending Regulation Z, which implements the Truth in Lending Act, and the Official Interpretations of the regulation. Among other things, Regulation Z limits the total amount of fees that a credit card issuer may require a consumer to pay with respect to an account to 25% of the credit limit in effect when the account is opened. Regulation Z previously stated that this limitation applies prior to account opening and during the first year after account opening. The CFPB’s final rule amends Regulation Z to apply the limitation only during the first year after account opening.
The final rule is effective March 28, 2013.