b'Credit, Debit + Prepaid CardsDuring 2020, Goodwin tracked four enforcementRegulation Z. The CFPB announced that it does not actions related to credit and debit cards, a slightintend to cite a violation in an examination or bring increase from the three such actions Goodwin trackedan enforcement action against a creditor that takes in 2019. Though the number of enforcement actionslonger than required to respond to these error notices remained low, total recoveries jumped substantially,so long as the creditor makes good faith efforts to from $15 million recovered in 2019, to over $3.1 billion incomply, and instead intends to consider the creditors combined consumer relief and civil penalties collectedcircumstances. The CFPB cautioned that creditors in 2020. The bulk of that recovery ($3 billion) ismust continue to comply with other Regulation Z attributable to a single settlement between Wells Fargorequirements while a billing error remains unresolvedand CFPB. The remaining $122 million was recoveredfor example, a creditor may not attempt to collect the from a single settlement between T.D. Bank and thedisputed payment. CFPB, and on its own represents an 87% year-over-yearAlso in its May statement, the CFPB encouraged (but increase in total recovery. did not require) creditors more generally to consider The few enforcement actions we saw align with ourwhether they want to offer consumers assistance prediction last year that there would be continuedsuch as late fee waivers, refunds and repayment reluctance by the CFPB to regulate and enforce in thisforbearance, or deferral during the pandemic. space. Not only has there been limited enforcementIn June, the CFPB issued another statement this past year, but the CFPB and other regulators alsoannouncing that it would provide temporary flexibility relaxed some of their regulations over banks and creditto credit card issuers in connection with Regulation card issuers as a result of the significant operationalZs written disclosure requirements. Regulation Z impact caused by COVID-19. requires that credit card issuers provide certain written disclosures to consumers. Under the E-Sign Act, credit Key Trends card issuers are permitted to make these disclosures electronically, if the consumer provides sufficient In recognition of the operational disruptions and delaysconsent (E-Sign consent). Recognizing that it can be caused by COVID-19, the CFPB enacted measurestime consuming and difficult to obtain E-Sign consentrelaxing regulatory requirements and providing financialand that a delay in obtaining the requisite consent can institutions with flexibility. The CFPB presented itsnegatively impact consumers seeking reliefthe CFPB guidancewhich remains in effect at the time of thisannounced that during the COVID-19 pandemic it will publicationas a change in approach during thetake a flexible supervisory and enforcement approach pandemic, without clarifying the circumstances underwith respect to written account-opening disclosures which they would rescind these changes.and temporary rate or fee reduction disclosures For example, in May, the CFPB issued a statementrequired by Regulation Z, and that it does not intend announcing that it would relax enforcement ofto bring an enforcement action against a credit card Regulation Zs timeline for creditors to investigate andissuer who obtains a consumers E-Sign consent during respond to consumer billing error notices. The CFPBan oral telephone interaction. A credit card issuer acknowledged that, as a result of COVID-19, somewho obtains such consent orally must still obtain both creditors and merchants faced significant operationalthe consumers oral consent to electronic delivery disruptions and delays in responding to customersof the written disclosures and oral affirmation of the billing error notices within 30 days, as required byconsumers ability to access and review the electronic written disclosures.28'