WASHINGTON–The CFPB and its director, Rohit Chopra, will be getting a lot of attention in Washington and from America’s Credit Unions this week.
Chopra will provide his semi-annual testimony before the Senate Banking Committee on Wednesday and before the House Financial Services Committee on Thursday.
Anytime Chopra testifies it can lead to some testy exchanges between Democrats, who support the Bureau, and Republicans, who want to see it dismantled.
America’s Credit Unions’ chief advocacy officer, Carrie Hunt, said the trade group’s focus will primarily be with what he has to say about fees, as well as plans for open banking.
Hunt said ACU remains “extremely concerned” over the Bureau’s view on fees, especially overdraft and NSF fees, and reminded the CFPB has a proposal around OD income that it has yet to finalize.
Meanwhile, as CUToday.info reported here, last week the CFPB launched a process to recognize open banking standards.
What New Rule Does
The Bureau said the new rule establishes a process for recognizing data sharing standards and prevents “dominant incumbents from squelching start-ups.”
As CUToday.info has also been reporting, the Bureau for several years has been emphasizing it plans to create an environment for open banking in the U.S.
While it’s still early in the development of a framework around open banking, Hunt said that from America's Credit Unions’ perspective, while it “fully supports progress and the ability to bank in new ways, we still need a universal standard relative to data security,” as well as ways to reduce fraud, “because credit unions are still having to bear the brunt of breaches.”
‘Vehemently Disagree’
Other concerns around open banking include privacy, she added.
Overall, with the CFPB, Hunt said, “We continue to vehemently disagree with the CFPB's approach to regulate by press release and letter, as opposed to the formal (rules).”
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