WASHINGTON (2/10/16, UPDATED 8 a.m. ET)--Jim Nussle sent an immediate letter of concern to Consumer Financial Protection Bureau (CFPB) Director Richard Cordray this morning for a misinterpretation of the Dodd-Frank Wall Street Reform and Consumer Protection Act that could unduly burden credit unions.
During a joint agency webinar with National Credit Union Administration Chair Debbie Matz Tuesday, Cordray was asked whether the CFPB would exempt credit unions from CFPB rulemakings. Cordray responded that he was not able to allow such an exemption because the U.S. Congress was not willing to allow it.
"I am very deeply troubled about this misinterpretation" of the Dodd-Frank Act, Nussle, the president/CEO of the Credit Union National Association, wrote to Cordray.
Nussle said the director's interpretation is contradicted with a "plain reading of the statute," and also by "a number of legal opinions from industry experts, including some who previously served at the CFPB, as well as by Congress itself."
Nussle included attachments of the referred-to legal opinions in his letter, and also set out clear language from the Dodd-Frank Act, which states:
"The Bureau, by rule, may conditionally or unconditionally exempt any class of covered persons, service providers, or consumer financial products or services, from any provision of this title, or from any rule issued under this title, as the Bureau determines necessary or appropriate to carry out the purposes and objectives of this title, taking into consideration the factors in subparagraph (B)."