Credit unions resources used for financial education and literacy can be strained by regulatory costs, CUNA told the Consumer Financial Protection Bureau (CFPB) in a letter sent this week. Responding to a bureau proposal to renew Office of Management and Budget approval for information on financial coaching for veterans and low-income consumers, CUNA outlined credit unions’ role in financial education.
“Financial coaching is one of these important and valuable services offered by many credit unions. Accordingly, we strongly support the CFPB’s work and efforts in this area. Nevertheless, we urge the CFPB to make any data collection efforts in coordination with this work voluntary and flexible,” the letter reads. “This allows credit unions with distinct and unique fields of membership to use data-driven interventions to assess the progress of their members in a way that benefits consumers making up their specific and unique membership.”
The letter also notes examples of services provided by America’s credit unions, including offering financial education to both young and older Americans, as well as veterans, and lending in the safest and most affordable ways including to consumers facing distressing financial situations.
“Moving forward, we hope the CFPB will work closely with credit unions so they can continue to dedicate resources to this good work, without any unnecessary burdens,” the letter reads.