CUNA supports appropriate disclosure of necessary decision-making information, as well as efforts intended to empower consumers in understanding financial products. CUNA submitted a comment letter Friday to the Consumer Financial Protection Bureau (CFPB), in response to the bureau’s request for information on communications to student loan borrowers.
“We appreciate the CFPB’s effort, in coordination with the Department of Education, to ensure student loan borrowers are aware of the tools available to them to potentially decrease the likelihood of default on federal student loans,” CUNA’s letter reads. “Whether pertaining to payment of student loans, mortgages, life insurance premiums, or any product in between, CUNA and credit unions want credit union members to have the information necessary to make informed decisions.”
Since the proposal does not affect private student loans, its application to credit unions is limited. However, action by the CFPB and Department of Education on federal student loans could inform future activity on private loans.
“In general, we ask the CFPB to continue to look for ways in which to improve and simplify disclosures in an effort to make such disclosures more effective at communicating pertinent information to the consumer,” CUNA’s letter reads.
The CFPB sought feedback on a series of potential borrower communications, “Student Loan Payback Playbooks,” developed by the CFPB in coordination with the Department of Education and the Department of the Treasury.