FOR IMMEDIATE RELEASE
Contact: Zan McKelway, CUNA Communications, 202-508-6701
WASHINGTON, D.C (March 16, 2016) We continue to be disappointed in Director Cordray's stance on the impact the CFPB's regulations are having on not-for-profit, member-directed credit unions, said Jim Nussle, CUNA's President and CEO.
He is simply mistaken regarding the legislative history regarding a credit union exemption during the congressional debate surrounding the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank).
More than three-quarters of the U.S. House of Representatives--a whopping 329 individual members of Congress- recently signed a CUNA initiated letter by Reps. Adam Schiff (D-Calif.) and Steve Stivers (R-Ohio) calling on the CFPB to use its authority to protect small financial institutions from regulatory burden, just as Congress provided for in Dodd-Frank.
There is no question that the rules the bureau continues to create are negatively impacting the ability of credit unions to provide diverse product and service offerings to their members, and forcing credit unions to exit certain markets. We are particularly interested in meeting with Director Cordray and his staff so they can fully understand the $7.2 billion annual regulatory impact we've identified in our recent study of credit union compliance costs.
The director unfortunately seems comfortable with his own narrow set of facts that do not take into account a full understanding of the damage the increasingly complex regulatory burden is having on credit unions.
Small-dollar lending: We appreciate Director Cordray's remarks that the CFPB is trying to make sure there are ample avenues that remain for small-dollar lending to be available to consumers. Specifically his statements indicating that credit unions have a product that is worth protecting, and that the CFPB does not want to squash innovation in this area. We hope the CFPB's forthcoming rulemaking in this market actually aligns with these statements, and that credit unions do not face any additional regulatory hurdles to participate in this market.