Washington D.C. – Wisconsin Congressman Sean Duffy, Chairman of the Financial Services Subcommittee on Housing & Insurance, and Colorado Congressman Ed Perlmutter today introduced H.R. 5534, the Give Useful Information to Define Effective (GUIDE) Compliance Act. The GUIDE Compliance Act seeks to regularize the Consumer Finance Protection Bureau’s process of providing rules and guidance to better protect consumers.

“By encouraging greater consistency with CFPB guidance, this bill will increase transparency, help level the playing field, and improve compliance with consumer financial laws,” said Rep. Perlmutter. “The GUIDE Compliance Act will benefit consumers and businesses across the country by helping everyone understand the rules.”

“I’m proud to sponsor bipartisan legislation to bring predictability and transparency to the CFPB’s rule-making process,” said Rep. Duffy.

Background:

Specifically, the GUIDE Act:

1. Mandates that the Director issue “guidance” that is necessary or appropriate to carry out the purpose of the laws it is responsible for including facilitating compliance;
2. Defines “guidance” to include a range of written issuances from interpretative and legislative rules, to bulletins and frequently asked questions;
3. Requires the CFPB to publish in the Federal Register within one year of enactment of the definitions, criteria, timelines and process for issuing each type of guidance the CFPB shall provide, with a final rule required within 18 months  of enactment;
4. Prohibits liability for reliance in good faith on guidance from the Bureau or any predecessor agency that was in effect at the time of such act or omission;
5. Requires the CFPB to establish a process and timeframes for requests for guidance, including time limits to provide answers in response to requests for guidance; 
6. Requires the CFPB to create a process for amending or revoking guidance, including a process for public notice and comment; and
7. Requires the CFPB to develop guidelines for determining the size of any civil money penalties and publish these guidelines in the Federal Register within 18 months of enactment.

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