CUNA President/CEO urged Consumer Financial Protection Bureau (CFPB) Director to impose an immediate moratorium on pending and future bureau rulemakings in a letter sent Friday. In the letter, Nussle said policies that create challenges in accessing safe financial products from credit unions and other small financial institutions are not making consumers’ lives better.
“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.”
Nussle cited CUNA’s regulatory burden study that shows in 2014 the total impact of financial regulations and lost revenue on credit unions was $7.2 billion, “a cost coming out of the pockets of consumers across America.”
CFPB rulemakings on mortgage reporting, underwriting and servicing, remittances and other already consumer-friendly products are already stifling credit unions’ ability to serve their members.
“In particular, these rules have impeded credit unions’ ability to serve members with lower credit scores, or those facing financial difficulties,” Nussle said.
More information can be found on CUNA’s Removing Barriers Blog.