WASHINGTON–With the House not in session and the Senate in session for just two-and-a-half days this week, the credit union focus is on the status of legislation that would block the CFPB’s ban on forced arbitration clauses in financial contracts, such as credit cards.
“We continue to stress the difference between credit unions and others that are covered by this rule,” said a CUNA spokesperson. “Arbitration effects a member-owned financial institution completely differently than a Wall Street bank.”
Separately, House Financial Services Subcommittee Chairman Sean Duffy (R-Wi) has written to the NCUA board saying that "absolutely every dollar possible" should be returned to credit unions, and he called on the agency to "withdraw or amend" its current proposal to close the Temporary Corporate Credit Union Stabilization Fund (TCCUSF) to make sure this happens.
Duffy, chairman of the Housing and Insurance Subcommittee, wrote that credit unions in his district have concerns about the NCUA's proposal to close the TCCUSF and raise the National Credit Union Share Insurance Fund's (NCUSIF) normal operating level (NOL) to a "record high level." He wrote that according to his constituent credit unions, the NCUA has not made a "justifiable case" as to why a hike in the NCUSIF's NOL is necessary.
He further expressed concerns to NCUA Chairman J. Mark McWatters and Board Member Rick Metsger about the fact that federally insured credit unions would only receive a small percentage in refunds from the $4.8 billion they have paid in assessments since 2010 – a similar concern shared by the credit union trade associations.
The NCUA board will meet to discuss the proposal at its Sept. 28 meeting.