WASHINGTON (10/19/15)--Two CUNA subcommittees met with Consumer Financial Protection Bureau (CFPB) 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 Thursday, just after the agency voted to finalize its risk-based capital rule.
Regarding overdraft protection, the subcommittees discussed credit union overdraft protection, and questioned the CFPB about what it is considering for its 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.
“Credit unions offer overdraft products very differently from for-profit institutions. Credit unions offer overdraft services as a convenience and accommodation for their members and members appreciate these services,” said Elizabeth Eurgubian, CUNA’s deputy chief advocacy officer. “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.”
Committee participants shared information about the value these services provide to members.
The CFPB meeting also featured a discussion of short-term, small dollar loans, on which the bureau issued a proposal in March. CUNA recently conducted a survey to determine how these proposals will impact credit unions. Meeting participants urged the CFPB to leave the NCUA Payday Loan Alternative program in place without additional compliance burdens.
During the meeting, the subcommittees 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: