WASHINGTON–NAFCU is expecting a more “active” CFPB now that it’s new director is firmly in the job, and it’s attention is likely to include overdraft fees.
“I do think you will see the CFPB being more active now with Director (Rohit) Chopra in place,” said NAFCU VP-Legislative Affairs Brad Thaler. “Given that things are not moving very fast in Congress, it’s where the administration will be able to make a lot of its policy changes through the regulatory process. Whether the changes are through regulation or enforcement actions, remains to be seen.”
While both CUNA and NAFCU have most recently raised alarms over a CFPB proposal over small business credit applications, as CUToday.info reported here, Thaler said he expects another issue even closer to many CUs’ hearts is going to also get scrutiny.
“I do think overdraft fees are something the CFPB will look at this year,” Thaler said. “It does remain on the congressional agenda, but I don’t think there is consensus or the votes there to pass anything in Congress. So, it will come down to the regulators and I do think the CFPB will be looking into this issue in this year ahead and potentially making rules this area.”
Delays at Treasury
Separately, as CUToday.info also reported here, ahead of a Senate Banking Subcommittee hearing on how Community Development Financial Institutions (CDFIs) support underserved communities, NAFCU has a letter urging increased spending but also calling for a “backlog” in applications to be cleared first.
Why the backlog in applications being processed? The reasons aren’t certain, said Thaler.
“We have been reaching out to Treasury. The fund has been popular and it has had a lot of money come in and it has also received a lot of applications,” said Thaler.
Whether the delays are caused by staffing or processing issues isn’t yet known, said Thaler, who added, “It needs to be cleaned up. We know a number of credit unions out there have filed applications and have been waiting longer than 90 days, and 90 days is the timeframe in which you are supposed to hear back” on the status of the application.
The Week in Washington
Of interest to credit unions this week in Congress will be hearings related to the nomination of Jerome Powell for another term as chairman of the Federal Reserve, Lael Brainard, as vice chair of the Fed, and Sandra Thompson as director of the Federal Housing Finance Authority.
On Wednesday, the Senate Committee on Aging will hold a hearing titled, “Financial Literacy: Addressing the Unique Just-in-Time Decisions Older Americans and People with Disabilities Face.”