The CFPB issued a proposed rule on Regulation AA, which bans the use of certain provisions in contracts for consumer financial products or services.

The proposed rule would:

• Prohibit waivers of substantive consumer legal rights and protections granted by state or federal law;
• Restrict unilateral amendments;
• Bans contract terms that limit lawful consumer speech;
• Codify longstanding prohibitions under the Credit Practices Rule; and
• Empower state attorneys general to enforce these prohibitions using provisions of the Consumer Financial Protection Act.

With a new administration taking office next week, America’s Credit Unions continues to be concerned with last-minute rulemakings, as well as the proposal’s significant restrictions on the ability of credit unions to contract with their members.

President-elect Donald Trump is expected to name a new CFPB acting director next week, and a new director could choose not to finalize any outstanding proposed rules.