Has anyone read the ABA Newbytes this morning? Thoughts?
Issue: Section 232.8(e) provides that it is unlawful if a creditor “uses a check or other method of access to a deposit, savings, or other account maintained by the covered borrower,” subject to certain exceptions. The regulation thus appears to prevent creditors from accessing accounts by accepting payments from covered borrowers by check or via an electronic fund transfer (as defined in Regulation E, 12 C.F.R. pt. 1005), including, for example, via ACH debits. We do not believe this result was intended because it will be harmful to covered borrowers, particularly those deployed overseas, who will not be able to use all available payment options.