WASHINGTON (6/18/2015)--CUNA in a comment letter to the Consumer Financial Protection Bureau (CFPB) Wednesday addressed four areas of the credit card market with this overall message: Because member-owned cooperative credit unions have a vested interest in already ensuring their fees and rates are appropriate and fair, they should not be burdened by additional, cumbersome regulations.
CUNA commented on four areas under consideration by CFPB: online disclosures, grace periods, add-on products and debt collection. The letter, written by CUNA Senior Director of Advocacy and Counsel Luke Martone, is in response to CFPB’s extended request for comments in these areas as it studies the credit card market, a requirement of the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009. CUNA commented earlier on other aspects of the study.
While expressing support of the stated intent of the CARD Act, CUNA said CFPB must find a balance between adding to the regulatory burden of credit unions and protecting consumers from abusive credit card practices.
“As the only consumer-owned cooperatives in the financial marketplace, credit unions have a tradition of protecting consumer interests, and CUNA has consistently been a strong proponent of appropriate and sufficient safeguards, including those implemented under the CARD Act,” the letter noted. The services offered by credit unions, including credit card programs, do have associated costs, CUNA said.
“As the CFPB completes its review of the credit card market, we urge it to be cognizant of the fact that excessive requirements have the potential to divert credit unions’ resources and attention from meeting member needs,” said CUNA’s letter.
CUNA’s comments in the four areas included: