WASHINGTON (5/19/15)--CUNA is focused on ensuring consumers receive adequate credit card protections while minimizing regulatory burdens on the credit unions that already offer fair and sound products to their members.
That’s what CUNA told the Consumer Financial Protection Bureau (CFPB) in a letter sent Monday in response to the bureau’s call for comments on the credit card market.
The request for comment is the second such review of the credit card market, required by the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009.
“While CUNA continues to support the stated intent of the CARD Act, which is to eliminate predatory credit card practices caused by irresponsible lenders, we remain concerned that regulatory requirements not become any more cumbersome than they currently are for consumer-owned credit unions,” reads the letter.
While CUNA supports the intent of the CARD Act to eliminate predatory practices, it believes CARD Act regulations have led to increased compliance costs for credit unions and to operate card programs.
“We therefore urge the CFPB to provide credit unions with meaningful regulatory relief from provisions of the CARD Act for which it has appropriate authority and for which there are no clear protections provided to the consumer by the implementing regulations,” the letter reads. “The reality is that excessive regulatory requirements have the potential to divert credit unions’ resources and attention away from their primary mission, which is to meet their members’ financial needs.
According to CUNA data, more than 50% of credit unions offer credit card programs, as a service to their members. As member-owned financial cooperatives, credit unions have an interest in ensuring they charge appropriate fees and fair interest rates, since the costs are borne by members.
The CFPB has extended the deadline for comments regarding online disclosures, grace period, add-on products and debt collection. CUNA will be sending a follow-up letter addressing those topics before the June 17 deadline.