Bill to codify CFPB CU council gets House approval
April 22, 2015
WASHINGTON (4/23/15)--The U.S. House passed the CUNA-supported Bureau of Consumer Financial Protection (CFPB) Advisory Boards Act (H.R. 1195) Wednesday by a 235-183 vote.
CUNA President/CEO Jim Nussle, who wrote to House leaders this week, said the bill is an important step in protecting credit union interests and would give credit unions a permanent voice in the CFPB's rulemaking process.
H.R. 1195 would codify CFPB's Credit Union Advisory Council (CUAC) and Small Business Advisory Board, which are currently established on a voluntary basis.
"Too often, CFPB regulations designed for massive, 'systemic risk' financial institutions end up hurting small businesses, credit unions and community banks," said Rep. Robert Pittenger (R-N.C.), the sponsor of the bill. "This bipartisan legislation will restore balance, continuing strong protections for consumers while allowing small businesses the freedom to grow and create good paying jobs."
Rep. Jeb Hensarling (R-Texas), chair of the House Financial Services Committee, also praised the legislation.
"An agency as powerful as the CFPB will benefit from the advice of small businesses, community banks and credit unions," he said. "The CFPB should listen to them so it can issue smart regulations."
As previously reported in News Now, the bill has turned into one with significant partisan overtones due to an amendment added by the House Rules Committee to limit the amount of money the CFPB can draw from the Federal Reserve in 2020 and 2025.
The White House has stated that if President Barack Obama was presented the currently amended version of the bill, his senior advisers would recommend he veto it.
CUNA Chief Advocacy Officer Ryan Donovan said CUNA will continue to work with Congress and the administration to get the CUAC provision turned into law.