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CUNA Tells CFPB to Take a Breather
Friday, November 18, 2016 6:40 AM

In a letter addressed to CFPB Director Richard Cordray, Credit Union National Association urged the Consumer Financial Protection Bureau to impose an immediate moratorium on all of its pending and future rulemakings. Citing American voters’ message to federal policymakers that they want their voices to be heard, CUNA noted that consumers have been harmed by policies that make safe credit harder to access. 

CUNA pointed out to the CFPB that policies coming out of Washington that limit consumers' ability to obtain safe credit, or make it difficult and more expensive to access products and services from their community financial institution such as their credit union, are not making their lives better.

The letter reminded Director Cordray that unnecessary, overly burdensome, and duplicative regulations keep consumers from fully accessing the high-quality products and services that credit unions provide. 

“Too many resources credit unions would otherwise apply to more fully serving their members are spent on complying with broad sweeping rules that should instead be focused on those abusing consumers," the letter stated. "In 2014, the total financial impact of regulations and lost revenue on credit unions was $7.2 billion—a cost coming out of the pockets of consumers across America.”

In the letter, CUNA outlined specific rulemakings that have not only harmed credit unions a result of excessive regulatory burden, but the members they serve. It notes that CFPB rulemakings on mortgage reporting, underwriting and servicing, remittances, and other already consumer-friendly credit union financial products has stifled credit unions’ ability to effectively and efficiently serve their members. The letter further expresses the grave concern that these rules have impeded credit unions’ ability to serve members with lower credit scores, or those facing financial difficulties.

CUNA’s letter ended by stating that in light of these consumer concerns and in conjunction with the pending change in the administration in 2017, it makes the most sense for the CFPB to cease its pending rulemaking affecting credit unions.