WASHINGTON--Ahead of Thursday's Senate Banking Committee confirmation hearing for Consumer Financial Protection Bureau director nominee Brian Johnson, the Defense Credit Union Council urged lawmakers to pursue a balanced regulatory approach that promotes consumer protection while providing credit unions with greater regulatory certainty and appropriately tailored oversight.
Jason Stverak
While welcoming Johnson's extensive background in consumer financial policy, DCUC requested the Committee examine how his leadership would protect consumers while recognizing the unique structure and mission of not-for-profit credit unions.
"Consumer protection and regulatory accountability are not competing priorities; they are complementary ones," said Jason Stverak, DCUC Chief Advocacy Officer. "The next CFPB director has an opportunity to strengthen public confidence by focusing enforcement on demonstrable consumer harm, promoting clear and consistent regulatory expectations, and ensuring credit unions can continue delivering affordable financial services to the communities that depend on them most, including our nation's servicemembers, veterans, and military families."
Anthony Hernandez
In its letter, DCUC outlined several priorities for the Bureau's next leader, including:
- A risk-based supervisory approach focused on demonstrable consumer harm
- Greater transparency, accountability, and regulatory certainty
- Tailored oversight recognizing the distinct not-for-profit structure of credit unions
- Enhanced coordination with the National Credit Union Administration to reduce duplicative examinations
- Continued investment in the Office of Servicemember Affairs and stronger protections against fraud targeting military consumers
- Responsible oversight of emerging technologies, artificial intelligence, open banking, and data security while preserving access to affordable credit
"The CFPB's decisions extend far beyond regulatory compliance," stated Anthony Hernandez, DCUC president/CEO, ret. U.S. Air Force colonel. "They influence the availability of affordable financial services, the pace of innovation across the financial sector, and the ability of credit unions to continue investing in the financial readiness of military communities. Effective regulation should protect consumers without limiting the institutions that are helping them build long-term financial security."
Defense credit unions serve millions of members worldwide, including active-duty servicemembers, veterans, military families, and civilian communities. DCUC reminded that a transparent, predictable regulatory framework will help preserve consumer choice, foster innovation, and ensure financial institutions remain equipped to meet evolving economic and security challenges.
DCUC also submitted a series of questions for the record encouraging Johnson to address regulatory accountability, military consumer protections, fraud prevention, emerging financial technologies, and collaboration with the credit union industry.