WASHINGTON, D.C (May 12, 2025) |
The Defense Credit Union Council (DCUC), representing credit unions that proudly serve our nation’s military and veteran communities, supports the Consumer Financial Protection Bureau’s (CFPB) decision to withdraw dozens of outdated policy statements, interpretive rules, and advisory opinions, as detailed in the official Federal Register public inspection document (Document No. 2025-08286), scheduled for publication on Monday, May 12, 2025.
This action marks a deliberate and positive step toward improving regulatory clarity, consistency, and fairness. For too long, financial institutions—including not-for-profit credit unions—have operated under a maze of overlapping, and at times contradictory, guidance that lacked the weight of formal rulemaking but nonetheless shaped enforcement and compliance expectations.
By rescinding these non-binding documents, the CFPB is modernizing its regulatory posture and signaling that policy should be driven by durable, transparent rules rather than informal advisories or politically motivated interpretations. We especially commend the Bureau for its
new standard of issuing guidance only where necessary and where compliance burdens would be reduced rather than increased, as explicitly stated in the document.
This approach is especially valuable for defense credit unions. These institutions operate under strict oversight and exist solely to support the financial well-being and readiness of military personnel, veterans, and their families. They don’t have sprawling legal departments like Wall Street banks to navigate ambiguous guidance. Regulatory predictability empowers credit unions to do what they do best—serve those who serve.
We also note the CFPB’s clarity that while these withdrawn documents are not necessarily rescinded permanently, they “should not be enforced or otherwise relied upon by the Bureau while this review is ongoing.” DCUC appreciates this transparent signal that further changes will be based on thoughtful review and public engagement, rather than piecemeal or reactive decision-making.
Importantly, this decision will prevent outdated interpretations from being misused in examinations or legal proceedings, protecting smaller and mission-driven institutions from compliance overreach.
DCUC encourages the CFPB to continue down this path of regulatory modernization with public input and fairness as guiding principles. Credit unions stand ready to work with the Bureau to craft meaningful, streamlined rules that promote consumer protection without creating unnecessary burdens.
This is a welcome move. It sends a strong signal that the CFPB is refocusing on what works: clear rules, consistent application, and reduced red tape for institutions serving everyday Americans—including the millions of military families who rely on defense credit unions.