WASHINGTON, DC (June 5, 2018) — National Association of Federally-Insured Credit Unions (NAFCU) Executive Vice President of Government Affairs and General Counsel Carrie Hunt today sent a letter to House Financial Services Committee, Subcommittee on Financial Institutions and Consumer Credit Chairman Blaine Luetkemeyer, R-Mo., and Ranking Member Lacy Clay, D-Mo., ahead of tomorrow’s hearing on critical ways to improve transparency and accountability at the Consumer Financial Protection Bureau (CFPB).
In the letter, Hunt reiterated the association’s opposition to the bureau’s authority over credit unions out of concern for overregulation, and also encouraged lawmakers to support legislation to reform the CFPB’s leadership structure.
“During the consideration of financial reform, NAFCU was concerned about the possibility of overregulation of good actors such as credit unions, and this is why NAFCU was the only trade association to oppose the Bureau having authority over credit unions,” said Hunt. “Unfortunately, many of our concerns about the increased regulatory burdens that credit unions would face under the Bureau have proven true.”
In addition to noting NAFCU’s concerns about credit unions’ increased regulatory burden under the CFPB, Hunt encouraged members of the subcommittee to support a bill introduced by Reps. Dennis Ross, R-Fla., and Kyrsten Sinema, D-Ariz., that would reform the bureau’s leadership structure from a single director to a five-person, bipartisan commission.
“Regardless of how qualified one person may be, a commission would allow multiple perspectives and robust discussions of consumer protection issues throughout the decision making process,” Hunt wrote. “Credit unions and their 111 million members are greatly impacted by the actions of the Bureau and believe the operating structure of the Bureau should be as fair and transparent as possible.”
Hunt also acknowledged suggestions made by CFPB Acting Director Mick Mulvaney to Congress that would increase transparency and accountability, including subjecting the CFPB to the congressional appropriations process, which NAFCU supports. She recommended the bureau continue to have direct contact with credit unions, such as through the Credit Union Advisory Council.
The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to www.nafcu.org or @NAFCU on Twitter.
