Illinois credit unions and the Illinois Credit Union League had the opportunity to meet with Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger in Chicago on Monday, the latest meeting between credit unions and the new director.
The delegation included representatives from 14 credit unions from around the state, ranging in asset size from $20 million to more than $10 billion (and thus supervised by the CFPB). The group, comprised of CEOs and lending, operations and marketing executives, was invited to provide feedback about the bureau and the impact of its rulemaking on credit unions as part of a “listening tour” with Kraninger.
“The main point we wanted to get across was that one-size-fits-all financial regulation doesn’t work and isn’t even necessary for member-owned credit unions. The unintended negative impact of the bureau’s actions to punish bad actors and protect consumers has led to an excessive compliance burden on many credit unions,” said Tom Kane, president of the Illinois Credit Union League. “In addition to this high-level message, we welcomed the director’s willingness to discuss the impact of specific rules on our credit unions.”
The Illinois delegation raised the effect of Home Mortgage Disclosure Act reporting, small-dollar lending, and debt collection rulemaking, as well as data collections requirements and data security.
“Our credit unions also shared great stories about how they’ve helped members and their communities, which highlight the credit union difference,” Kane added.
Kraninger was confirmed to a five-year term as CFPB director in December. CUNA followed up her confirmation with a letter outlining credit union priorities for the CFPB. CUNA staff also participated in a roundtable discussion with Kraninger in January.