Recently the Cconsumer Financial Protection Bureau (CFPB) has received several partisan letters from Congress about its rulemakings; however, the need for reducing regulatory burden is the only issue addressed by a supermajority of 399 Members of Congress. The recent letter was sent by hundreds of representatives from both parties asking the CFPB to use its exemption authority to ease regulatory burden on credit unions.
CUNA believes the distinction of having overwhelming support for this letter, compared with others, sends a strong message to the CFPB that regulatory relief, and tailoring rulemakings to have as little impact on consumer-friendly actors such as credit unions, is top of mind for Congress and the consumers who elected them.
“We’re grateful to the 75% of Congress that reached out to CFPB Director Richard Corday to stress the importance of tailoring rules to focus on problem actors, and to relieve credit unions and their members from the adverse impact of overly broad rules,” said CUNA Chief Advocacy Officer Ryan Donovan. “In a time when compromises can be hard to come by, we’re thankful that such a large majority of both parties grasp the importance of not-for-profit, member-owned financial institutions providing access to financial services.
“It’s because of hard work of state leagues and credit unions that a bipartisan majority of Congress told the CFPB that easing the regulatory burden on credit unions is good public policy for all Americans,” Donovan added.
Seventy senators added their names in July to the 329 House members who wrote to the CFPB urging it to use its statutory exemption authority to protect credit unions from regulatory burdens.
Senate efforts were led by Sens. Joe Donnelly (D-Ind.) and Ben Sasse (R-Neb.), while House efforts were led by Reps. Adam Schiff (D-Calif.) and Steve Stivers (R-Ohio). Credit union leagues around the country worked to gather support from their elected officials.
“Consumers elect their representatives to have a voice in Washington, D.C,” Donovan said. “We urge the CFPB to listen to this combined voice of thousands of consumers throughout the country, who have urged Congress to seek relief on their behalf. Consumers heavily rely on the services provided by their credit unions, and do not want to see the consumer-friendly products offered by them limited or penalized because of the actions of bad actors.”
CUNA has urged the CFPB to use its exemption authority in a meaningful way for credit unions for ongoing proposals including small dollar loans, arbitration, and debt collection.