WASHINGTON—NAFCU and CUNA have both sent letters to the Hill, with the former expressing concerns over legislation to modernize financial services, and the latter addressing proposals related to robocalls.
In its letter, sent ahead of the House Financial Services subcommittee hearing on modernizing financial services through innovation and competition, NAFCU outlined several considerations it said will help limit regulatory burdens on credit unions and support a level playing field.
“Consumers today come to expect technological developments from their financial institution—from online banking to mobile bill pay,” NAFCU Senior Vice President of Government Affairs Greg Mesack wrote. “Many credit unions embrace innovations in technology to improve relationships with members and offer more convenient and faster access to financial products and services.
“As we have previously cautioned, the growth of fintech can also present new threats and challenges as novel entities emerge in an underregulated environment,” he added.
List of Requests
Mesack expressed NAFCU’s general support for the draft legislation, Financial Services Innovation Act of 2023, that would “create a petition process for regulatory flexibility for innovation,” but the trade group said there are other changes it would like to see, including:
- Clear guidance from regulatory agencies on the petition process to minimize administrative burdens
- Collaborative forums for credit unions and other financial institutions to share best practices and challenges related to innovative financial products and regulatory petitions
- Consistency in how regulatory agencies respond to petitions, ensuring a level playing field for credit unions (both amongst the industry and with other types of institutions)
- Clarity and support to navigate state-level regulatory challenges and engage effectively with the judicial review and arbitration processes to ensure the petition process can effectively work
- Protection against the potential for misuse by fintechs, resulting in competitive pressure for regulated entities. It is important that petitioners have strong regulatory compliance track records
CUNA: Concerns Over TCPA
CUNA, meanwhile, urged a Senate subcommittee to work toward a balance between facilitating legitimate calls while preventing illegal calls. Doing so will help restore trust in the nation’s communications network, the trade group said.
CUNA said it shares Congress’s goal of “restoring trust” in the communications network, but stated the Telephone Consumer Protection Act (TPCA) has had little effect.
“Recognizing the limitations of the TCPA to deter bad actors, the Federal Communications Commission (FCC) has turned to technological solutions such as automated calling number authentication (STIR/SHAKEN), call blocking regime, and caller traceback,” the letter reads. “We applaud the Commission’s recent successes in using these tools to identify and shut down some of the worst abusers. These tools are still evolving and, while aiding in identifying the worst actors, also result in legitimate calls being blocked or mislabeled.”
‘Admittedly Difficult’
CUNA notes the TRACED Act, signed into law in 2019, directs the FCC to ensure “transparent and effective redress for companies whose calls are mishandled,” and CUNA said it has sought to work with the FCC to achieve the “admittedly difficult” balancing act of stopping bad calls without blocking good ones.
“We urge the FCC to move forward with the adoption of call blocking notification standards so that testing and implementation of this technology can begin,” the letter reads.