WASHINGTON—CUNA has sent a letter to Rep. Roger Williams (R-TX) supporting HR 1264, which would provide an exemption from rules and regulations from the Consumer Financial Protection Bureau for community financial institutions.
“Thank you for your leadership to provide additional clarity to the CFPB that it has the authority to exempt credit unions and other community financial institutions from onerous one-size fits all rulemakings that limit their ability to provide safe and affordable financial products and services,” wrote CUNA President and CEO Jim Nussle to Williams, the bill’s sponsor. “Section 1022 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) and several of the enumerated consumer laws already expressly authorize the Bureau to provide exemptions from the requirements of statutes or implementing regulations generally or the requirements of certain provisions specifically. These various statutory provisions individually and together grant broad authority to the Bureau and constitute a strong legal framework to support the agency’s reasonable use of its exemption authority. We greatly appreciate that you and 398 other Members of Congress have called on the CFPB to use this authority to better protect consumers from the unintended consequences of rules that favor the largest banks and nonbank providers, creating a rigged system that disfavors credit unions and community banks.”
Nussle reiterated CUNA’s position that it believes the CFPB currently has the authority to exempt credit unions under $50 billion from its rulemaking, but has been unwilling to effectively use the exemption authority.
“Although we have a few technical concerns with the bill, we support what it is trying to do and we commit ourselves to working with you and your staff as it moves through the legislative process,” said Nussle.