FOR IMMEDIATE RELEASE
January 6, 2022
The Credit Union National Association (CUNA) today expressed concern with the Consumer Financial Protection Bureau’s (CFPB) small business data lending proposal, emphasizing the regulatory strain it could bring to credit unions. The proposed rule would amend the Equal Credit Opportunity Act (ECOA) to require financial institutions to collect and report certain data regarding business credit applications.
“As community-based financial institutions, credit unions were designed to meet the needs of their local communities. They have a vested interest in helping the small businesses they serve in ways that are equitable and fair,” said Elizabeth Eurgubian, CUNA Deputy Chief Advocacy Officer and Senior Counsel. “We urge the Bureau to keep the proposed rule as manageable and tailored as possible so that financial institutions of all sizes can continue to deliver to their customers with minimal impact to small business borrowers.”
While CUNA supports the goals of Section 1071 to ensure fair and equitable financial opportunities, it cautions against overly broad data collection which could present unintended consequences to community institutions and present substantial compliance costs. Additionally, data collected from credit unions with restricted field of memberships would be inconsistent with lenders that serve a broad consumer base.
CUNA shared several recommendations with the Bureau to effectively balance consumer protection and the availability of credit for small businesses:
CUNA and the National Association of Federally-Insured Credit Unions (NAFCU) also submitted a joint response to the proposed rule sharing concerns.
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by more than 120 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.