Despite credit union’s continued growth in the credit card market, credit unions remain responsible credit card providers, CUNA wrote to the Consumer Financial Protection Bureau Wednesday. The CFPB seeks input on several aspects of the consumer credit card market, the fourth such review as required by the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009.
“As the CFPB conducts its review of the credit card market, we urge it to be cognizant that excessive regulatory requirements have the potential to divert credit unions’ resources and attention from meeting their members’ needs,” the letter reads. “The credit unions that offer credit card programs do so as a service to their members.”
Low delinquency and charge-off rates for credit unions’ credit cards remain lower than those of their bank counterparts, CUNA’s letter reads. It also notes that as member-owned financial cooperatives, credit unions have a vested interest in minimizing fees, and that credit unions face challenges that might not impact other card issuers to the same degree.
Other highlights of the letter include: