CUNA strongly encourages the Bureau of Consumer Financial Protection to work with the National Credit Union Foundation in its consumer education efforts, it wrote in its comprehensive white paper to the bureau. CUNA submitted its white paper Monday in response to the bureau request for information on financial education programs.
“CUNA strongly recommends the Bureau utilize financial education efforts to guide consumer behavior. This approach, rather than additional rulemaking to guide certain consumer choices, provides the foundation for good consumer financial health,” CUNA’s white paper reads. “Consumer education is proactive, not reactive, and should be the default for the Bureau when addressing issues with consumer financial services or industry practices.”
The paper notes how credit unions are uniquely positioned to provide financial education resources to members and to focus on consumer financial well-being.
“By definition, credit unions are instruments to bring cooperative credit to communities,” the paper reads. “As equal member-owners in a credit union, the credit union, as a whole, has a direct interest in promoting the financial literacy and sound financial judgment of each member.”
The paper also highlights how the Foundation works with credit unions and national leaders in financial well-being to help credit unions improve their financial status. This includes providing resources and grant opportunities, spearheading a financial health conference and working with the bureau to leverage its financial well-being scale as part of these efforts.