WASHINGTON—CUNA and NAFCU say they support easy access to credit scores, but told the Consumer Financial Protection Bureau in separate letters that it may not be feasible for all institutions to offer such scores free of charge.
CUNA wrote to the Bureau in response to its request for information on consumers’ experience with access to credit scores.
“We support and encourage voluntary efforts to increase the financial well-being of credit union members, including through easy access to credit scores,” the letter reads. “However, we urge the CFPB and other agencies to provide financial institutions with guidance intended to achieve this goal but not to go so far as to prescribe unnecessary requirements.”
The letter also notes credit unions’ long history of investing heavily in financial education, and the fact that they are often embedded in schools and universities, making these services available to young people starting their financial lives.
“Many companies and financial institutions—including some credit unions—choose to voluntarily provide free credit scores to their consumers and members,” the letter reads. “We applaud their choice to do so, but stress to the CFPB that it may not be feasible for others to offer such a consumer perk.”
NAFCU's Stance
In its own letter to the Mulvaney, NAFCU cautioned the Bureau against pursuing a rulemaking that would compel credit unions to offer free credit scores as it could restrict credit unions' flexibility in what products and services they offer to members.
NAFCU Regulatory Affairs Counsel Andrew Morris agreed that "access to free credit score information can play an important role in maintaining the financial health of credit union members." Morris noted that credit unions can help members interpret credit score information, and some credit unions offer free credit score analysis services.
"To accommodate the flexible creation of financial literacy programs, NAFCU does not believe that new requirements for credit unions related to the provisioning of credit scores would be helpful or necessary," Morris wrote.
Morris added that credit unions currently work to improve their members' financial health and literacy by providing products and services that their members need, based on their own, unique understanding. If the CFPB were to require credit unions to offer free credit scores, it could increase costs or "draw resources away from more essential products or services."