CUNA makes recommendations on CFPB compliance cost survey
The Consumer Financial Protection Bureau (CFPB) should gather credit union-specific feedback when conducting a survey on small business data collection compliance costs, CUNA wrote Monday. The letter comes in response to a CFPB request with the Office of Management and Budget to conduct the cost survey, CUNA does not expect a proposed rule to be issued until later in 2020 or 2021.
“CUNA has long asserted the CFPB should conduct a robust cost/benefit analysis prior to issuing any rulemaking that could impact credit union operations. The planned compliance cost survey of one-time costs associated with a small business data collection rulemaking should provide the Bureau with a useful data point to conduct such an analysis,” the letter reads, adding that the CFPB has at times unjustifiably applied data, feedback and trends of bank entities to credit unions, despite the uniqueness of credit unions’ structure and mission.
While CUNA does not object to the Bureau’s plans to gather information on the compliance costs associated with a small business data collection, the letter reiterates CUNAs position that the CFPB should use its authority to exempt credit unions from a small business data collection rulemaking.
“The high costs associated with Section 1071 compliance, particularly for smaller credit unions, would ultimately harm the ability of small business owners to obtain loans from their local credit union,” the letter reads. “This is particularly crucial since credit unions are already highly regulated in this market and subject to strict statutory limitations specific to them, such as caps on member business lending.”