As the U.S. House considers the Financial Services and General Government (FSGG) Appropriations Act of 2016 (H.R. 5485), Rep. Steve Stivers (R-Ohio) referenced CUNA’s letter outlining concerns with the Consumer Financial Protection Bureau’s short-term, small-dollar loanproposal. Stivers referenced CUNA’s letter in connection with an amendment to the FSGG bill that would delay the rule’s implementation.
“The Independent Community Bankers of America and the Credit Union National Association recently wrote to the CFPB to voice their strong opposition to this rule, they fear that this rule will force them out of the short-term credit market and stop them from serving millions of consumers across our country,” Stivers said.
The CFPB released its proposal last month, and CUNA is concerned about the effect it could have on a number of consumer-friendly credit union products.
“We thank Rep. Stivers for mentioning our concerns with the CFPB’s proposal as the House considers this appropriations bill,” said Eli Joseph, CUNA’s deputy chief advocacy officer. “Hopefully the potential negative effects this proposal could have on access to credit for many Americans remains at top of mind as the discussions continue.”
As of Thursday evening, the House is currently voting on which amendments to include in the bill, and the possibilities include a number of CUNA-backed amendments.
These amendments would offer regulatory relief in areas such as the CFPB, mortgage lending, the Foreign Account Tax Compliance Act, the Telephone Consumer Protection Act and more.
It would also fund a number of credit union programs, including the NCUA’s Community Development Revolving Loan Fund, Treasury’s Community Development Financial Institutions Fund and the Small Business Administration’s 7(a) and 504 loan programs.