CFPB seeks comments on proposed changes to its prepaid rule, which is scheduled to take effect April 1, 2018. The rule subjects prepaid accounts that access certain overdraft services or credit features to Regulation Z requirements by defining them as “credit cards.”
Excessive credit card requirements have the potential to divert credit union resources and attention away from meeting member needs, CUNA told the CFPB in a letter sent in response to a RFI on aspects of the credit card market.
The CFPB Wednesday agreed to CUNA’s request to extend the comment deadline for its request for information on the small business lending. CUNA requested the 60-day extension in several recent meetings with the CFPB.
CUNA and several credit unions met this week with representatives from CFPB to discuss the recently released RFI regarding the small business lending market, and CUNA followed up with a letter sent Thursday requesting an extended comment period.
CUNA submitted a letter to the CFPB Thursday, detailing the numerous ways agency rulemakings have affected, and in many cases harmed, credit unions, their members and consumers. The letter also includes recommendations to improve regulations.
NCUA Chair J. Mark McWatters wrote that a number of changes should be considered to CFPB rules and policymakings, to provide regulatory relief for credit unions, particularly with respect to exemption authority, HMDA and UDAAP requirements of Dodd-Frank.
Credit unions play an important role in meeting the needs of consumers facing financial challenges and support more flexibility and the ability to innovate. However, CUNA cautioned against any additional mandatory data reporting in a letter to CFPB Thursday.
CUNA supports proposed changes to proposed changes to ethnicity and race collection under the Equal Credit Opportunity Act. CFPB proposed the amendments to provide a creditor with additional flexibility in how it collects applicant ethnicity and race information.
Credit unions will be represented in the upcoming Consumer CFPB field hearing on small business lending by Sharon Lindeman, vice president of regulatory advocacy for the California and Nevada Credit Union Leagues.
Comments are due May 9 on NCUA’s ANPR, and CUNA urges credit unions to comment. Other comment deadlines this month include the Consumer Financial Protection Bureau’s alternative data and Equal Credit Opportunity Act amendments.