NEW: Reps. to CFPB: Use authority to protect CUs
WASHINGTON (2/23/16 UPDATED 11:42 A.M. ET)--U.S. Reps. Adam Schiff (D-Calif.) and Steve Stivers (R-Ohio) are asking for signers on a Dear Colleague letter addressed to the Consumer Financial Protection Bureau (CFPB) urging the agency to use its authority to protect credit unions.
The letter to the CFPB cites the Dodd-Frank Act section in which the CFPB has “the authority to adapt regulations by allowing it to exempt ‘any class’ of entity from its rulemakings.”
“The GAO recently reviewed the impact of regulation on community lenders and found that credit unions and other small banks have reduced consumer lending products because of an increased compliance burden that may not have been intended for them," the representatives noted in their call for signers.
It adds: “With major rules already being implemented and new regulations on the horizon, our letter reminds the CFPB that Congress intentionally provided for regulatory flexibility to mitigate collateral damage on smaller financial institutions.”
The authors encourage the signing of the bipartisan letter “to help ensure continued access to financial products” by credit union members. The letter will close March 4.