ALBUQUERQUE, N.M. (3/31/16)--After publishing an article about the increasing regulatory burden on credit unions, the Albuquerque Journal followed it up with an editorial that supported credit unions’ concerns.
In a Wednesday editorial headlined “Invasive government red tape choking institutions,” the Journal wrote that government is “constantly churning out more laws and regulations created with good intentions ... However, the cost of ensuring that laws and regulations are followed to the T has skyrocketed, and it’s negatively impacting people the rules are intended to help.”
The effect on the state’s 46 credit unions and more than 805,0000 members was detailed by Paul Stull, president/CEO of the Credit Union Association of New Mexico, and Marsha Majors, president/CEO of Albuquerque’s U.S. Eagle FCU. (See related News Now story: N.M. league, CU bring reg. costs to light in local media.)
The editorial cited numbers from the Credit Union National Association’s recent study on regulatory compliance costs and credit union-backed efforts asking the Consumer Financial Protection Bureau to use its exemption authority to protect credit unions from regulatory burden stemming from the Dodd-Frank Act.
“So instead of having more money for car loans, or offering better loan rates or opening new locations, a huge pile of money is going toward complying with regs,” the Journal wrote.
“Whatever good intentions Congress, legislatures and bureaucracies had in mind, the result has been a vast overreach in which common sense has been replaced by fine print and reports. It should be pared back.
“At the end of the day, the cost of playing by the rules might just put an enterprise out of business or out of reach because it’s so expensive.”