CUNA continued to express concerns with the Consumer Financial Protection Bureau’s (CFPB) test on bankruptcy forms by signing a joint letter Friday. CUNA sent in its own comment letter Thursday, outlining issues with the methodology and some conclusions with the bureau’s report on its study on tracking comprehension, perceived utility and attitudinal reactions in response to various forms.
“While we appreciate the opportunity to comment on the testing, we note that the statements have only limited meaning without their accompanying regulation,” the joint letter reads. “In several areas, we are unable to understand what the statements reflect because we do not have an accompanying regulation that would implement the statements. The only way to obtain robust comment is to publish both the statements and their regulation for comment together.”
The letter goes on to list a number of reasons why the organizations do not believe the testing results to be reliable.
According to the CFPB, the report is based on 51 one-on-one interviews conducted with subjects who had experience in various types of bankruptcy and some with no bankruptcy experience. Interviews were conducted in three locations: Arlington, Va.; Fort Lauderdale, Fla.; and Chicago.
CUNA and the other organizations are concerned about the small sample size, the focus on consumers only, a lack of clear methodology and clarity in various terms used in the report and others.
In its original comment letter, CUNA also took issue with the conclusion that consumers generally only look at a statement’s payment coupon, and not the outstanding principal balance.
CUNA also urged the agency to work with bankruptcy courts as much as possible, and to defer to their expertise, since it does not believe an executive branch agency should be promulgating rules that would affect a judicial branch function.