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CUNA Subcommittees Meet with CFPB and NCUA to Discuss Regulatory Burdens
Monday, October 19, 2015 6:40 AM

Two subcommittees from Credit Union National Association met with Consumer Financial Protection Bureau staff Friday to discuss potential overdraft rules and to remind the agency of the current regulatory burden facing credit unions. The subcommittees also met with National Credit Union Administration staff on Thursday, after the agency voted to finalize its risk-based capital rule.

The subcommittees discussed credit union overdraft protection and the CFPB's overdraft rulemaking. The bureau discussed past and ongoing research about overdraft and indicated that it is attempting to learn about the practices of small institutions and credit unions through data collected from service providers. Committee participants shared information about the value of these services provide to members.

Elizabeth Eurgubian, CUNA’s deputy chief advocacy officer, said, “We do not support broad new regulation of overdraft services that would limit the flexibility of credit unions to structure their services appropriately, including the regulation of overdraft fees.”

The CFPB meeting also featured a discussion of short-term, small-dollar loans, on which the bureau issued a proposal in March. Meeting participants urged the CFPB to leave the NCUA Payday Loan Alternative program in place without additional compliance burdens.

Subcommittee members also expressed frustration with the Home Mortgage Disclosure Act (HMDA) rule finalized by the bureau the day before, and the increased regulatory burden it places on credit unions.

Both subcommittees met with NCUA Chair Debbie Matz to discuss supplemental capital, exam efficiency, member business lending, and field-of-membership issues.

CUNA’s meeting with the NCUA’s Office of Consumer Protection featured a similar discussion of overdraft policies and Military Lending Act compliance, as well as discussion of:

  • The Telephone Consumer Protection Act, the problems it could create for credit unions and how CUNA is unsatisfied with the scope of the Federal Communications Commission exemption for financial institutions;
     
  • Consumer complaint databases at both the NCUA and CFPB. CUNA has urged both agencies to coordinate their databases, and the NCUA, especially, to adopt policies similar to the CFPB’s when it comes to vetting complaints; and

Compliance and enforcement of the Truth in Lending Act-Real Estate Settlement Procedures Act integrated disclosures rule. CUNA asked the NCUA to work closely with the CFPB to address the regulatory burden of the rule and to provide more exemptions to credit unions.