WASHINGTON—The CFPB is being urged by CUNA and NAFCU to hold a new Small Business Regulatory Enforcement Fairness Act (SBREFA) Panel where small entity representatives (SERs), which includes credit unions, can better estimate the impact of the proposals in its Fair Credit Reporting Act (FCRA) rulemaking effort and the potential costs on operations.
In a letter, the associations called for a new outline to be released, arguing it currently represents “an unwarranted and vast expansion of the intent and scope of the FCRA to impose additional requirements on credit unions, exposing these community-based, not-for-profit financial institutions to myriad legal and compliance risks, for supposed benefits to consumers that have yet to be quantified.”
The associations also said there is a lack of details for SERs and stakeholders to offer “any meaningful feedback at this time.”
Additional Arguments
The associations made additional arguments, including:
- The FCRA only requires factual issues to be resolved in disputes and legislative history “shows that legal issues were not intended to be resolved by furnishers, like credit unions.”
- The definition of “data broker” should be narrow to exclude depository institutions already subject to the requirements of the FCRA and should not impair credit unions’ ability to obtain valuable information like credit header data
- Credit unions should be permitted to continue using medical debt information as they see fit because this data offers an important means of confirming ability to repay
- The CFPB should provide at least 24 months to implement any final rule so that credit unions can consult with their various business units to ensure proper compliance
Are You Being Gouged for Bank-Like Subscription Fees for Old News? Here’s a CU-Like Way to Fix That
The biggest, best and freshest news reporting in credit unions remains free! Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more. So stop paying those bank-fee-like subscription prices from other so-called “news” publications!
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?