CUNA was in attendance Thursday for the semi-annual meeting of the Consumer Financial Protection Bureau’s (CFPB) Credit Union Advisory Council (CUAC). The council, which advises the bureau on how its programs are impacting credit unions and is comprised of mostly CUNA members, discussed debt collection and youth financial literacy.
CFPB Director Richard Cordray said during his opening remarks that credit unions are “pace-setters” when it comes to consumer education, and are leaders in youth financial education.
During his remarks, Cordray also highlighted a Financial Industry Regulatory Authority national financial capability study. The study showed that half of those participating did not have 3 months of emergency savings and more than a third said they likely would not have enough money to cover an unexpected expense of $2,000.
The statistics are in line with concerns credit unions and CUNA have brought to the CFPB about allowing safe and affordable small-dollar credit options from credit unions to remain uninhibited.
During the open session, the council also discussed debt collection practices. CUAC members highlighted a number of differences between credit union communication and debt relief efforts with distressed consumers and for-profit third-party debt collectors.