CUNA wrote the House Financial Services Committee Tuesday in support of a resolution to void the Consumer Financial Protection Bureau’s section 1071 rulemaking via the Congressional Review Act. The 1071 rule—finalized in March—would require credit unions to collect and report certain data on applications for credit.
“Credit unions support the goals of section 1071 and seek to provide all members with fair and equitable financial opportunities,” the letter reads. “That said, it remains important for the CFPB to not harm small businesses or small financial institutions, such as community credit unions, in the process. There is widespread concern that Section 1071’s complexity and significant costs will weigh disproportionately on credit unions in ways that ultimately lead to fewer and less favorable outcomes for all small business borrowers.
“The overly broad scope of the CFPB’s rule will substantially raise the cost of small business borrowing and require covered financial institutions to collect data on businesses that are not “small businesses” by any traditional metric,” it adds. “Section 1071 should be appropriately tailored to ensure the health and financial needs of truly small businesses can continue to be met.”
Sen. John Kennedy, R-La., sponsored a similar resolution in the Senate in June.