NAFCU statement on impact of Dodd-Frank and CFPB on credit unions

WASHINGTON (July 23, 2014) — National Association of Federal Credit Unions (NAFCU) President and CEO Dan Berger issued the following statement today regarding the Dodd-Frank Wall Street Reform and Consumer Protection Act and its impact on credit unions.

“Since the implementation of the Dodd-Frank Act and establishment of Consumer Financial Protection Bureau (CFPB), more than 800 credit unions have closed their doors,” said Berger. “Compliance costs have taken a serious toll on credit unions that do not have the resources that big banks do – and the regulations keep coming.”

NAFCU was the only financial trade association to oppose putting credit unions of any size under the authority of CFPB when the bureau was proposed.

“It’s time to say ‘enough is enough’ and end the rampant overregulation of credit unions. Lawmakers and regulators agree that credit unions were not responsible for the financial crisis,” Berger said.

NAFCU supports effective regulation that improves competition, promotes innovation, avoids unnecessary costs, meets stated objectives and is efficiently implemented. To this end, NAFCU is working to stop the encroaching regulatory burden through its five-point plan for regulatory relief and its “Dirty Dozen” list of rules to amend some rules and eliminate others. Several elements of the association’s five-point plan for credit union regulatory relief has already been reflected in legislation, including:

  • H.R. 2572, the “Regulatory Relief for Credit Unions Act”;
  • H.R. 3468, which would amend the Federal Credit Union Act to require pass-through share insurance coverage to be provided for Interest on Lawyers Trust Accounts;
  • H.R. 688, the “Credit Union Small Business Jobs Creation Act,” which addresses member business lending; and
  • H.R. 719, the “Capital Access for Small Businesses and Jobs Act,” which addresses supplemental capital.

About Us:
The National Association of Federal Credit Unions is the only national organization that focuses exclusively on federal issues affecting credit unions, representing its members before the federal government and the public. 

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