WASHINGTON–The Credit Union Advisory Council to the CFPB met here yesterday, including the eight new members representing credit unions. The meeting was focused on promoting financial education and the CFPB’s proposed rule on debt collection.
In remarks to the group, CFPB Director Richard Cordray said he has seen “firsthand the important role that credit unions play in the lives of so many consumers and communities around the country. You take your responsibilities to your members very seriously, and many of you have been pacesetters as consumer educators. Your voice matters, and we want to hear from you.”
During the meeting Cordray shared findings from the CFPB’s most recent National Financial Capability Study, which is an annual survey of the American people’s financial wherewithal conducted by the Financial Industry Regulatory Authority, known as FINRA.
Cordray said “this year’s survey shows we are moving in the right direction. Seven years after the first FINRA study was conducted, Americans on average are experiencing less financial stress and more satisfaction with their financial condition.”
Cordray said the survey identified four key elements of financial wellbeing: a sense of financial security that is provided by consumers feeling in control of their finances; that nearly half of Americans now say they have an emergency fund they have set aside to cover three months of expenses; consumers reported a sense of being on track to meet their financial goals, and those who report working toward long-term goals are much more likely to be satisfied with their personal finances than those who are not doing so, as it provides a sense of financial freedom.
That was the good news. The bad news, Cordray told the Advisory Council meeting, is the survey also found “large swaths” of Americans continue to face financial difficulties, with more than half of all respondents not having three months of emergency savings. More than a third said they likely would not have enough money to cover an unexpected expense of $2,000.
“As we continue to rise from the ashes of the financial crisis, we need to empower people to take more control of their economic lives. When more people have more financial capability, consumers and industry both benefit and our economy rests on stronger and more enduring foundations,” Cordray said.
In terms of the CFPB’s proposal to overhaul the debt collection market, which requires among other things that debt collectors would need to have more, and more reliable, information about the debt before they collect, as well as new rules related to dispute settlements and how debt is sold or transferred, Cordray said, “We are at the early stages of considering different aspects of this proposal, which is a good time to be discussing it.”
Recently appointed to the Credit Union Advisory Council were:
- Faith Lleva Anderson,Senior Vice President and General Counsel, American Airlines Federal Credit Union, Fort Worth, Texas
- Daniel Berry, Chief Executive Officer, Duke University Federal Credit Union, Durham, N.C.
- Patrick F. Harrigan, Chief Risk Officer and General Counsel, Service Credit Union, Portsmouth, N.H.
- Ricardo Ledezma, Corporate Compliance Assurance Manager, San Antonio Federal Credit Union, San Antonio, Texas
- Sarah Marshall, Chief Executive Officer, North Side Community Federal Credit Union, Chicago, Ill.
- Dayatra T. Matthews,Senior Vice President of Legal & Compliance, Local Government Federal Credit Union, Raleigh, N.C.
- Amy Nelson, Chief Executive Officer, Point West Credit Union, Portland, Ore.
- Raynor Zillgitt, Vice President Risk Management and General Counsel, Lake Trust Credit Union, Brighton, Mich.
The CFPB also appointed new members to its Consumer Advisory Board, Community Bank Advisory Council, and Academic Research Council.