McWatters’ letter on CFPB enforcement

In his first two weeks as Chairman of the NCUA Board, Mark McWatters made a bold opening move in a letter to the CFPB yesterday asking for exemption for federally insured credit unions from the examinations and enforcement provisions of section 1025 of the Consumer Financial Protection Act of 2010 (CFPA).

McWatters wrote, “I make this point not to imply that the protection of credit unions’ consumer owners is unimportant, but rather to suggest that the imposition of aggressive punitive fines on the very FICU consumers the CFPB is tasked with protecting, ‘for the benefit of consumers,’ is tantamount to imposing a ‘the beatings will continue until morale improves’ approach to consumer protection enforcement.”

Read the letter in its entirety here.