As the Consumer Financial Protection Bureau (CFPB) marked its fifth year of existence Thursday, CUNA President/CEO Jim Nussle wrote to the bureau about increasing concerns about regulatory burden. The CFPB’s creation was authorized by the Dodd-Frank Act as a legislative response to the financial crisis.
“We are concerned that credit union members are becoming collateral damage in the CFPB’s attempts to regulate the ‘banks, lenders and other financial companies’ in the industry,” Nussle wrote. “Credit unions recognize that they operate in a highly regulated industry and must bear the reasonable costs of regulation. However, unnecessary, overly burdensome, and duplicative regulations mean that credit union members are not able to fully access the high-quality that credit unions provide.”
According to Nussle, CFPB should focus on a few specific areas to better serve credit union members going forward:
“Overall, it has been a long five years for credit unions, the institutions that are owned by the consumers they serve,” Nussle wrote. “The “one-size-fits-all” and product-based approach to rulemaking simply does not work for credit union consumers, which are more than 100 million Americans. These consumers need the CFPB’s protection too, and we hope that moving forward, they get it.”