WASHINGTON—Saying the growing complexity of market offerings demands more time for input into government proposals and responses, America’s Credit Unions has filed a comment letter with the Office of Management and Budget.
“Notice and comment rulemaking is the backbone of responsible regulation,” the letter states.
“As industry grew more complex in the early 20th century, so did its oversight. The government’s answer to this burgeoning complexity was to defer regulation to the federal agencies and the executive branch grew in size and power,” wrote ACU’s Amanda Smith.
Response to Request
The letter was sent in response to OMB’s request for information (RFI) as it aims “to develop a government-wide framework, common guidelines, and leading practices for public participation and community engagement.”
In her letter, Smith said the public is “eager to participate” in notice and comment rulemaking when they are provided with sufficient information and submission procedures, citing as an example the Federal Communications Commission’s (FCC) net neutrality proposal, which received more than 45,000 comment.
‘Difficult to Believe’
Such comment requests, however, “sometimes appear to be formalities,” according to America’s Credit Unions.
“The Consumer Financial Protection Bureau recently noticed a rule restricting the amount of overdraft fees for financial institutions over a certain threshold,” Smith told OMB. “Concurrently, the President of the United States announced that overdraft fees would be eliminated. It is difficult to believe that any public comment could be persuasive enough to neutralize the President’s directive.”
Smith also pointed to the Small Business Regulatory Enforcement Fairness Act (SBREFA) panels, arguing the CFPB has failed to properly convene them for various rulemakings. Additionally, she called attention to the Bureau’s regulation by guidance instead of notice and comment rulemaking.
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