Credit unions join in letter to CFPB for reconsideration of response
The Consumer Financial Protection Bureau’s (CFPB) rejection of a bipartisan call for regulatory relief is troubling, and the bureau has been strongly encouraged by CUNA and all 37 credit union leagues, including LSCU, to reconsider this move. A letter was sent this week representing all 50 states and the District of Columbia on Wednesday to CFPB Director Richard Cordray.
The letter explains that Section 1022 of the Dodd-Frank Act gives the CFPB statutory authority to exempt any class of entities from CFPB rulemakings. It also reiterates that CUNA and the state leagues have been joined by a bipartisan supermajority of Congress — 399 members from both chambers — in their call for the bureau to exercise said authority.
“What is at stake, of course, is consumers’ continued access to safe and affordable financial services provided by cooperative financial institutions,” said CUNA and the state leagues. “Credit unions accept that they are subject to regulation, but Congress has sent strong signals through the statute and other means that regulation must be reasonable.”
Since 2010, costs for credit union compliance as a result of regulatory burden have risen from $4.4 billion in 2010 to $7.2 billion in 2014, according to CUNA’s regulatory burden study. These costs negatively impact the ability of more than 100 million members to access safe and affordable credit union products. To read more on this initiative, go to CUNA.