Credit unions have concerns about the lack of protections involving non-regulated entities engaged in financial services, CUNA wrote to a House subcommittee Thursday. The House Financial Services Subcommittee on Consumer Protection and Financial Institutions conducted the hearing to examine trends in financial institution charters.
“Credit unions are concerned that non-regulated companies are engaged in financial activities by offering products and services that are traditionally offered by credit unions and banks. These non-bank providers often strive to offer these products and services without being subject to robust consumer protection laws and regulations in place for banks and credit unions.”
CUNA also noted that the scope of Thursday’s hearing should lead the subcommittee to examine the legal framework and regulatory scope governing the oversight of traditional banks and other commercial businesses that are engaged in financial activity.
Other highlights of the letter include: