How to respond to a regulatory hiatus
Hint: Don’t be complacent about overdraft program compliance
As I returned home from the 2017 CUNA GAC last week, I had the opportunity to reflect on how the timing of regulatory action on financial products and services impacts the credit union folks back home. During this year’s regulatory session, “The Consumer Regulation Regime for 2017,” a participant asked a panelist from the Consumer Financial Protection Bureau (CFPB) where overdraft programs fall in the Bureau’s current rulemaking agenda.
The panelist responded that any overdraft ruling was further down the list now and she did not expect any action before CFPB Director Richard Cordray leaves office in 2018. Another panelist added that credit unions should do more to help consumers in the overall overdraft space.
This comment was met with an abundance of input from attendees who shared their experiences of working frequently with members who appreciate and – in some cases – desperately rely on having access to an overdraft program when they face a financial emergency. Representatives from CUNA backed up member comments and shared similar feedback they have collected from consumers about the need for the service.continue reading »