WASHINGTON—The sixth anniversary of the Dodd-Frank Wall Street Reform and Consumer Protection Act brought about little reason to celebrate, according to NAFCU.
“As we mark the six-year anniversary of Dodd-Frank, credit unions continue to suffer under an enormous regulatory burden that was borne out of a crisis they didn’t create,” said NAFCU President and CEO Dan Berger. “We are pleased that bipartisan majorities in both the House and Senate have recognized the burden on credit unions and have urged the Consumer Financial Protection Bureau to do more to exempt and better tailor its rules for credit unions. This week’s letter from Sens. Joe Donnelly (D-IN) and Ben Sasse (R-NE) and 68 of their colleagues, as well as an earlier letter sent by 329 House members sent to Director Cordray, undeniably confirms Congress’ intention for CFPB to exercise its exemption authority to better tailor rules for credit unions.
Berger added that credit unions have been widely recognized by lawmakers and regulators for not having caused the financial crisis and for their prudent business model.
“Even so, they are bearing the heavy load of regulations imposed on them in response to Dodd-Frank, and there appears to be no end in sight. Since the implementation of the Dodd-Frank Act, we have lost 20% of the industry due to this overwhelming regulatory burden,” said Berger. “Unfortunately, consumers suffer the most when credit unions disappear, since credit unions provide financial services with low fees, competitive interest rates and exceptional service.”
Berger said NAFCU also appreciates the leadership of House Financial Services Chairman Jeb Hensarling (R-TX) and House Financial Services Subcommittee Chairman Randy Neugebauer, (R-TX) for bringing congressional attention to the “failed policies” of the Durbin debit interchange amendment that was “air-dropped into the Dodd-Frank Act at the last minute. It is time to repeal this provision,” said Berger.
NAFCU said was the only credit union trade association to oppose subjecting credit unions to CFPB authority under Dodd-Frank. The association maintains that CFPB should exercise its authority to exempt credit unions from regulations aimed at bad actors.