Consumer Financial Protection Bureau (CFPB) Interim Director Mick Mulvaney said the bureau will focus on enforcement against bad actors, a direction CUNA has urged the CFPB to take over the last few years. Mulvaney, writing in the Wall Street Journal, also says the bureau will engage in more formal rulemaking and less regulation by enforcement.
“Focusing on the abusers of consumers should be the primary purpose of a consumer protection agency, and we’re pleased to see Interim Director Mulvaney acknowledge that,” said Ryan Donovan, CUNA chief advocacy officers. “Despite being adversely affected by rules aimed at those bad actors, credit unions are nationally recognized by consumers for outstanding member service. We look forward to continued engagement with the bureau on how this focus on bad actors can limit regulatory burdens on credit unions for the benefit of consumers.”
CUNA has consistently called for the CFPB to tailor its rules to remove service barriers between credit unions and their members. Most notably, CUNA has encouraged the bureau to exercise the authority granted in section 1022 of the Dodd-Frank Act, to exempt any class of entities from rulemakings.
This includes advocacy that led 399 members of both chambers of Congress to urge the CFPB to use its section 1022 authority. CUNA has also backed a bill that passed the House Financial Services Committee earlier this month that would exempt institutions with under $50 billion in assets from CFPB rules, unless there have been documented abusive practices.
Reducing regulatory burden for credit unions is a key pillar of CUNA’s 2018 advocacy agenda. In addition to working with the bureau to make broader use of its exemption authority, CUNA will work with new CFPB leadership to:
Additional details on Mulvaney’s op-ed, and CUNA’s analysis, can be found on CUNA’s Removing Barriers Blog.