WASHINGTON (8/8/14)--Minimizing the impact of current rules, pending proposals and contemplated requirements were key themes of a meeting Wednesday between the Credit Union National Association and the Consumer Financial Protection Bureau (CFPB).
Dan Smith, first assistant director of the CFPB's Office of Financial Institutions and Business Liaison, and CUNA's Deputy General Counsel Mary Dunn discussed regulatory relief for credit unions, which remains CUNA's highest regulatory advocacy priority. The association is pursuing that priority with the National Credit Union Administration and other agencies, in addition to the CFPB.
At the meeting, CUNA raised concerns regarding the possible regulation of overdraft plans by the CFPB, as well as a range of other regulatory concerns such as the pending Regulation C proposal to implement changes to the Home Mortgage Disclosure Act under the Dodd-Frank Act.
Dunn said this was done in in recognition of the significant role credit unions play in the financial marketplace for consumers and small businesses.
"CUNA will continue to press for favorable regulatory treatment for credit unions in light of the fact that credit unions did not engage in abusive practices that led to the financial crisis," she said. "More and more credit unions are merging and citing regulatory burdens as a factor. Credit unions need and deserve regulatory relief, and CUNA will continue seeking every opportunity to further that outcome on their behalf."
CUNA has advocated that credit unions should be exempt from overdraft regulations.
Credit unions are consistently reported as having lower overdraft fees than banks. A report from Informa Research Services in April found that the median fee for overdrafting a checking account at is $30.70, while credit unions were at $27.74. In addition, banks with assets greater than $50 billion carry median overdraft fees of $35, while the largest credit unions (with more than $5 billion in assets), charge an average of $25 (News Now April 2).