ARLINGTON, Va.–Concerns are being raised by NAFCU over indications by the CFPB that it is going to be more aggressive in enforcing new and existing rules, even as numerous other non-regulated entities continue to enter the market.
As CUToday.info has reported, the Bureau has in recent weeks made a number of announcements related to forbearances, foreclosures, debt collection and other consumer financial issues. But other providers, most especially fintechs, are expanding their offerings while not having to comply with oversight from the CFPB, NCUA, FDIC and other agencies.
“We have long held the position the CFPB should be looking at unregulated entities,” said Brad Thaler, VP-legislative affairs with NAFCU. “The CFPB should leave the credit union focus on NCUA. When the CFPB was created, NCUA and credit unions already had a track record of looking out for consumers. We always get wary of overregulation, but there could be role for the CFPB to look at the unregulated.”
New Video
As CUToday.info reported here, NAFCU has released a new video it said is designed to urge policymakers to ensure a level playing field between fintechs that are granted bank charters and financial institutions.
Thaler said the video was created in response to the feedback the trade group has been getting from its own member CUs.
“We continue to hear from credit unions they are concerned about what is happening with more and more entities taking advantage of cracks in the system,” said Thaler. “They have less regulation and less supervision and are coming in to complete against regulated financial institutions. They come in with different requirements that could lead to situations where credit unions and members could face some risk. We think it’s important that with this relatively new phenomenon that regulators and Congress examine these issues on the front end so there is not a situation where there are problems down the line.”
The NAFCU video can be viewed here.