2023 Policy Overhaul: How New Regulations from CFPB, Congress, and IRS Will Transform Your Finances
Policy and rule changes by government agencies often grab headlines but may have far-reaching consequences for your financial status.
Here are some of the most significant policy changes—enacted and proposed—from the Consumer Financial Protection Bureau (CFPB), President Joe Biden’s administration, the Credit Card Competition Act, and more for 2023 that are set to impact your finances in the coming year.
What are the significant policies?
Personal Financial Data Rights Rule (CFPB)
The CFPB proposed a new Personal Financial Data Rights regulation on October 19th to improve competition in the financial industry and make it easier for customers to exchange bank account information when searching for better rates and cheaper fees. This idea is now open for public feedback until December 29th. CFPB proposes to jumpstart competition and accelerate the shift to open banking.
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When this regulation is implemented, customers will profit in more ways than one. First, by enabling their financial institutions to share confidential information with other providers, they will find it simpler to explore for better service choices. Furthermore, banks will not be permitted to charge any extra or unwanted costs for sharing this information.
Credit Card Competition Act (Congress)
The Credit Card Competition Act of 2023 (CCCA) is a bipartisan measure that requires major banks to enable multiple payments on their network to process credit card transactions to improve competition in the credit card market. On June 7th, the measure was introduced in Congress. It is being considered by a committee before a possible vote in the House or Senate.
Proponents argue that the law will slash merchant operating expenses, decreasing consumer prices. Opponents claim that merchants will keep the savings, and credit card firms will limit incentives.
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Rule on Unfair or Deceptive Fees (Federal Trade Commission)
On October 11th, the Federal Trade Commission (FTC) proposed a regulation to prohibit junk fees. Companies would be required to stop charging hidden or deceptive fees, to display the whole amount upfront, and to state if costs are refundable. This rule’s comment period is available until January 8th.
Junk fees, according to the FTC, cost consumers tens of billions of dollars each year. According to the CFPB, over two-thirds of banks have removed non-sufficient fees since 2021, saving customers around $2 billion each year.
Ban on Non-Compete Clauses (Federal Trade Commission)
On January 5th, the FTC suggested a prohibition on non-compete terms in employment contracts.
A non-compete provision limits former employees’ job possibilities and can hurt salaries and employability. In April, the Federal Trade Commission (FTC) is anticipated to vote on a final rule prohibiting non-compete clauses in employment contracts.89
According to the FTC, the new regulation could raise salaries by roughly $300 billion each year. Opponents argue that outright prohibiting non-compete provisions will provide no protection for companies and disclose trade secrets.
Credits for New Clean Vehicles Purchased in 2023 or After (IRS)
If you buy a new plug-in electric vehicle (EV) or fuel cell vehicle (FCV) after April 18th, 2023, you may be eligible for a $7,500 clean car tax credit. The amount you qualify for is determined by the MSRP of the car, the place of final assembly, the source of battery components and/or essential minerals, and your modified adjusted gross income (AGI).
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This rule is part of the Biden Administration’s clean energy initiative. Electric vehicles are sometimes seen to be more expensive than gas-powered automobiles, and this credit might help purchasers make a decision.
Conclusion
Keeping a vigilant eye on evolving government policies that affect your finances is crucial for maintaining financial stability and adaptability. Policy changes wield immense influence, altering tax structures, investment landscapes, and economic conditions.
By staying informed and proactive, individuals can anticipate shifts, adjust their financial strategies, and make informed decisions to safeguard their assets and optimize their financial well-being in an ever-changing landscape.
