Letter to House subcommittee on reg relief from CFPB
WASHINGTON, DC (June 6, 2018) — Today Credit Union National Association (CUNA) sent a letter to the Subcommittee on Financial Institutions and Consumer Credit prior to their hearing to discuss reforms to the Bureau of Consumer Financial Protection (CFPB) entitled, “Improving Transparency and Accountability at the Bureau of Consumer Financial Protection.” The letter urges the Bureau to streamline regulatory burdens for credit unions and work more closely with the National Credit Union Administration (NCUA) on compliance.
“The bureau, in its first several years of existence, missed opportunities to leverage credit unions’ mission and history to the benefit of consumers, and finalized regulations that harmed credit unions and their members,” the letter reads. “Consumers lose when one-size-fits-all rules force credit unions to pull back safe and affordable options from the market, pushing consumers into the arms of the providers engaged in the very activity that the rules were designed to curtail.
CUNA focuses on several ways credit unions are prepared to partner with the Bureau on consumer protection activities:
- Regarding external engagements, the bureau should preserve the Credit Union Action Council (CUAC), maintain the balance of public and confidential parts of CUAC meetings and provide frequent webinars and other open communication avenues about new rules and requirements;
- Take important steps to verify the legitimacy and accuracy of its consumer complaint database;
- Employ greater use of the Advance Notice of Proposed Rulemaking aspect of the rulemaking process;
- Ensure its Small Business Regulatory Enforcement Fairness Act (SBREFA) process is efficient and effective moving forward, and that the bureau gives adequate weight and consideration to the expert input obtained during SBREFA panels;
- Work with NCUA and use its credit union experience on future rulemakings affecting credit unions;
- Apply a cost/benefit analysis to rules for credit unions;
- Coordinate future consumer financial protection efforts with state regulators and state attorneys general; and
- Assist the industry with compliance by opening additional channels to accept inquiries, track industry questions, publish written guidance or frequently asked questions, provide detailed and one-page final rule summaries, place all compliance resources in a central, easy-to-find place on its website, update compliance guides and conduct annual outreach to industry stakeholders.
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 120 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.