CUNA subcommittees discuss regulatory burdens with CFPB, NCUA
Two CUNA subcommittees met with Consumer Financial Protection Bureau (CFPB) staff Friday to discuss potential overdraft rules and to remind the agency of the current regulatory burden facing credit unions.
The subcommittees also met with National Credit Union Administration staff Thursday, just after the agency voted to finalize its risk-based capital rule.
Regarding overdraft protection, the subcommittees discussed credit union overdraft protection, and questioned the CFPB about what it is considering for its overdraft rulemaking. The bureau discussed past and ongoing research about overdraft, and indicated that it is attempting to learn about the practices of small institutions and credit unions through data collected from service providers.
“Credit unions offer overdraft products very differently from for-profit institutions. Credit unions offer overdraft services as a convenience and accommodation for their members and members appreciate these services,” said Elizabeth Eurgubian, CUNA’s deputy chief advocacy officer. “We do not support broad new regulation of overdraft services that would limit the flexibility of credit unions to structure their services appropriately, including the regulation of overdraft fees.”continue reading »