Virginia League, credit unions meet with CFPB Director Chopra

The Virginia Credit Union League and leaders from 12 member credit unions met with Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra and Senior Policy Advisor (External Affairs) Charles Johanek to discuss regulatory priorities and how credit unions' ability to serve members is affected by an ever-evolving -- and challenging -- regulatory landscape.

"We are grateful to Director Chopra for the opportunity to meet in-person to discuss how credit unions are serving their members through consumer-friendly products and services," said Carrie Hunt, president/CEO of the Virginia League. "It was also an opportunity to discuss how CFPB's rulemaking and its one-size-fits-all regulatory approach has credit unions disproportionately shouldering the effects of regulation."

Topics discussed include:

• Rising forbearances and delinquencies.
• The impact on consumers as larger companies and financial institutions control an ever-greater share of the market.
• The payment burden of auto loans as vehicle prices rise.
• How for credit unions, overdraft protection is a service, not a penalty or a core revenue driver. We also understand the importance for FIs to have a multi-year plan to reduce dependence on overdraft fee revenue.
• The CFPB’s rulemaking on small business lending data collection.
• Defining “relationship banking” and its potential value in a two-tiered regulatory framework.
• The CFPB’s move toward more bright-line rules and away from complex disclosure regimes.

Credit union leaders also shared their work to serve their members and their communities, through financial education, small-dollar lending, first-time homebuyer assistance, and credit score improvement services.

Director Chopra has prioritized engagement with credit unions and small banks to ensure the CFPB is attuned to the impact regulation has on institutions not directly supervised by the CFPB.