Credit unions are already playing an important role in meeting the needs of consumers facing financial challenges and support more flexibility and the ability to innovate in this area. However, CUNA cautioned against any additional mandatory data reporting, in a letter sent the Consumer Financial Protection Bureau (CFPB) Thursday. The letter was sent in response to the bureau’s request for information about the use of alternative data in the credit process.
“Credit unions have long supported finding creative ways to meet the needs of members in distressed financial situations, as well as all members. They support the use of alternative data to find solutions to meet these needs, particularly for low-income and credit-invisible consumers,” the letter reads. “However, credit unions need more flexibility under current statutes, not less, and we caution against overly complex, new reporting requirements regarding the use of alternative data.”
Other highlights of the letter include: