Friday, October 27, 2023
Examples include the ETA's meeting on Oct. 25, 2023, with the House Financial Services Committee and ELFA's disclosure of an Oct. 26, 2023, decision by the U.S. District Court for the Southern District of Texas that gives financial institutions more time to implement Section 1071 of the Dodd-Frank Act.
Ralph Petta, president and CEO of ELFA, called the Texas ruling, which delays 1071 implementation in all 50 states, a big win for ELFA members and the equipment finance industry.
"We applaud the action taken by the court today, which underscores the value of our association's ongoing efforts to ensure Section 1071 doesn't make it more burdensome for our members and their customers in the $1 trillion equipment finance industry to do business together," he said in a statement.
Petta noted that Section 1071, when implemented by the Consumer Financial Protection Bureau, will require commercial finance firms to submit annual reports to the CFPB with pricing disclosures and extensive financial data on credit applicants. ELFA has worked for more than a decade to reduce these onerous reporting measures, which will now be put on hold pending further review by the U.S. Supreme Court, he added.
Jodie Kelley, CEO of the ETA, testified before the House Financial Services Committee and Subcommittee on Digital Assets, Financial Technology and Inclusion, in an Oct. 25, 2023, hearing on modernizing financial services through innovation and competition.
Kelley encouraged policymakers to craft business-friendly policies that foster innovation, consumer protection and financial inclusion for all consumers. She noted that ETA member companies have developed a range of innovative products and services, including credit, debit and prepaid products; peer-to-peer services; digital and mobile wallets; embedded payments; open banking; SMB solutions; unbanked and underbanked solutions; and buy now, pay later.
"ETA member companies continue to advance the global flow of commerce while delivering affordable financial tools and services that meet the needs of underserved consumers," Kelley stated. "Because policymakers consider new laws and regulations for the payments industry, they should carefully consider the existing legal and regulatory framework and how potential changes might impact the ability of the industry to provide access to safe, innovative, and cost-efficient products and services."
As Kelley and Petta pointed out, member support is vital to achieving positive regulatory outcomes. ELFA's win was a direct result of litigation filed by Rio Bank, the Texas Bankers Association and the American Bankers Association, Petta stated, adding that ELFA became involved in August 2023 to expand the injunction's scope from the three entities to ensure initial relief provided by the judge would apply equally to all ELFA members nationwide.
Kelley underscored ETA member contributions to the U.S. economy and global commerce, encouraging policymakers to consider how potential changes to existing regulatory frameworks may impact the ability to provide safe, innovative and cost-efficient products and services.
"Any policy changes should be designed to serve the needs of both consumers and businesses, further financial inclusion, preserve and strengthen the financial system, minimize fraud, and ensure that consumers and businesses continue to have access to a robust and innovative array of secure banking and payment options," she said.
A video of the meeting is available at financialservices.house.gov/calendar/eventsingle.aspx?EventID=408989 
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