ARLINGTON, Va.—NAFCU again asked Congress to recognize that CUs did not cause the financial crisis and therefore should not be caught in the “crosshairs” of regulations designed to address those that brought about the Great Recession.
In a letter to House Small Business Subcommittee on Economic Growth, Tax and Capital Access Chairman in advance of Thursday’s hearing “Bearing the Burden: Over-regulation’s Impact on Small Business and Rural Communities,” NAFCU Vice President of Legislative Affairs Brad Thaler stated, “Lawmakers and regulators readily agree that credit unions did not participate in the reckless activities that led to the financial crisis, so they should not be caught in the crosshairs of regulations aimed at those entities that did. Unfortunately, that has not been the case thus far. Accordingly, finding ways to cut down on burdensome and unnecessary regulatory compliance costs is a chief priority of NAFCU members."
Thaler explained that as member-owned not-for-profit cooperatives, credit unions “consistently strive to provide their members with financial products and services designed to help each member achieve their individual financial needs and goals. Credit unions are dedicated to ensuring their members’ financial health by providing responsible products and services. Therefore, NAFCU believes it is critical for regulators to try to avoid any rulemaking that unjustifiably restricts the ability of credit unions to provide their members with the types of services they desire. This can be done through greater use of exemptions for credit unions and better tailoring of rules to recognize the unique nature of credit unions. For example, we believe that the CFPB can go much further than it has when it comes to using its exemption authority under Section 1022 of Dodd-Frank."