The Clearing House Association, L.L.C. and the Bank Policy Institute (the “Associations”) submitted comments in support of the CFPB’s proposed rule to define larger nonbank participants in the market for “general-use consumer payment applications” and extend CFPB’s supervisory authority over them.  The letter notes that the Associations have a long history of calling for functionally similar regulation and supervision of nonbanks when they engage in functionally similar activities as banks.  The letter also requests clarification of the treatment of “buy now, pay later” lenders under the proposal, and recommends that the CFPB limit the scope of the term “funds” to fiat currency and legal tender for the purposes of defining a consumer payment transaction under the rule, to avoid unintended consequences and promote regulatory transparency.

To read the full comment letter, click here.