WASHINGTON (3/15/16)--A bipartisan letter signed by 329 members of the U.S. House was delivered to Consumer Financial Protection Bureau (CFPB) Director Richard Cordray Monday, calling for the bureau to protect credit unions from Dodd-Frank regulatory burden. The letter was composed by Reps. Adam Schiff (D-Calif.) and Steve Stivers (R-Ohio), and efforts to collect signatures were led by the Credit Union National Association (CUNA), state leagues and credit unions.
“On behalf of our credit unions and the 105 million members we represent, we thank Reps. Schiff and Stivers for their leadership on this vitally important matter,” said CUNA President/CEO Jim Nussle. “We are grateful that a great bipartisan majority of members of the House believe the CFPB should use the authority they granted it to exempt credit unions from the Dodd-Frank Act.”
“The letter to Director Cordray and the extensive support it has attracted represents a successful deployment of CUNA’s 360-degree advocacy to remove barriers and optimize the operating environment for all credit unions,” Nussle added.
Both legislators praised credit unions for their not-for-profit cooperative nature, and agreed they shouldn’t be the focus of CFPB efforts aimed at bad actors.
“Credit unions play an integral role in our financial system by helping everyday consumers and businesses access credit at a local level,” Schiff said. “The CFPB should study and take into account the added burdens placed on credit unions and community banks when issuing new regulations, as these organizations are often disproportionately impacted.”
Stivers echoed those thoughts.
“Credit unions and community banks do not pose any systemic risk, yet the CFPB continues to issue rules that disproportionately hurt those community financial institutions," he said. “These unnecessary and costly regulatory burdens have limited the ability of families and job creators to get access to needed credit and caused community institutions to become too small to survive."
Nearly 75% of congressional leadership signed the letter, including the chairs of 17 committees. Click here for more.