Credit unions are the original consumer protectors, CUNA President/CEO Jim Nussle wrote to the House Financial Services Committee Monday, but Consumer Financial Protection Bureau (CFPB) actions are harming them, and the members they serve. CUNA sent its letter for the record of the committee’s hearing which will feature the first testimony from CFPB Acting Director Mick Mulvaney in that role.
“it is clear that the CFPB has let credit unions and consumers down. Rule after rule has impeded credit union service to their members. The direct impact of rules, like the remittance rule and various mortgage rules, have driven credit unions to leave markets or reduce their offerings. Even if overall industry volume increases, consumers lose when a credit union adjusts its offerings because of a rule that should have been targeted to abusers of consumers,” the letter reads.
“Further the price tag for this one-size-fits-all regulation hits credit union member owners in the pocket book, costing them $6.1 billion in 2016 alone. Credit unions are frustrated that they have been made to pay for the sins of Wall Street banks and other abusers of consumers,” it adds.
The letter outlines how CFPB actions in the area of ability to repay/Qualified Mortgages, mortgage servicing, Home Mortgage Disclosure Act, remittances and small-dollar lending, among others, have “significantly impeded” credit unions’ ability to serve its members with quality, consumer-friendly financial products.
CUNA also laid out its vision for the CFPB of the future, which includes:
CUNA also reiterated its support for replacing the single director structure at the CFPB with a bipartisan, multimember commission. CUNA backs a bill that would make that change, and joined other trade associations Monday to express support of the legislation.