WASHINGTON--Ahead of acting CFPB Director Russell Vought's testimony before the House Financial Services Committee on Wednesday, America’s Credit Unions sent a letter to the panel urging regulatory relief for credit unions while outlining broader recommendations for reforming the CFPB.
Russell Vought
Discussion about the CFPB Reform Act of 2026 is expected during the hearing. This draft legislation would bring the CFPB under the appropriations process, raise the supervisory threshold for very large financial institutions to $21 billion (from $10 billion), increase Congressional oversight of the CFPB, and provide greater clarity on unfair, deceptive, or abusive acts or practices (UDAAP).
The comment letter states the legislation “would make important enhancements to the CFPB and deserves the Committee’s attention and support.” It also raises several issues under the CFPB’s jurisdiction, encouraging the Bureau to:
- Modernize Home Mortgage Disclosure Act (HMDA) reporting requirements to support smaller lenders
- Adopt a more limited interpretation of who may request data on behalf of a consumer, and limit third-party access to entities that act in the consumer’s best interest under a reconsidered personal financial data rights rule
- Implement stronger Consumer Complaint Database quality controls to deter abusive submissions, clarify the distinction between a complaint and a contact or business inquiry, and provide clearer guidance to companies regarding appropriate handling of immaterial submissions (issues also emphasized in a February letter to the CFPB)
Advocacy efforts by America’s Credit Unions also continued with the Federal Reserve Tuesday in a letter sent to the Senate Banking Committee prior to Federal Reserve Chair Kevin Warsh’s testimony.
In a letter similar to one sent in advance of Warsh’s House Financial Services Committee testimony, America’s Credit Unions urged the Fed to withdraw proposed debit interchange changes; evaluate the risks of extending Master Account access to unregulated financial services entities; and work with the CFPB on modernizing the Expedited Funds Availability Act’s implementing regulation.