WASHINGTON—NAFCU and CUNA have joined with several financial trade associations in calling on President Biden to hold the CFPB “accountable” when it comes to the rulemaking process, saying they want to see support for “clear rules of the road” in the financial services industry.
“Markets work best when the rules are clear, so it is possible to comply with them,” wrote the groups. “Blog posts that contradict law or regulation, vague guidance that deems common practices like using form contracts or including certain terms and conditions in contracts, proclamations of the CFPB’s novel interpretation of law via amicus briefs, or enforcement actions that contradict state law, are not setting clear expectations that it is possible to follow.
“Moreover, in some instances, guidance has imposed new substantive obligations on affected parties without going through the notice-and-comment process; in these instances, such guidance is not truly ‘guidance,’ but instead operates as a substantive rule,” the groups continued.
‘Contrary to Goal’
In addition, the groups argued the CFPB fails to consider the costs and benefits of proposed regulations. These costs, the groups stated, often fall squarely on the shoulders of American consumers, which is “contrary to the administration’s goal of reducing fees for American consumers.”
“Spotty regulation creates an unlevel playing field that discourages financial institutions from taking risks on new products that may help underserved communities and reach customers who may pose more of a risk,” concluded the organizations.
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