WASHINGTON—The regulatory burden on credit unions from the CFPB needs to be reduced, according to a new letter to the House Financial Services Committee from NAFCU, which also told Congress the group has some thoughts on some other issues “pertinent to the CFPB.”
The trade association’s letter was sent ahead of the HFSC’s hearing this week on CFPB oversight.
Regarding the use of small entity exemption authority, NAFCU Vice President of Legislative Affairs Brad Thaler wrote that the CFPB should “provide some degree of regulatory relief for small entities that cannot afford to comply with complex rules and would otherwise be forced to stop offering services to members.”
The letter also encouraged the Bureau to coordinate with other federal financial regulators to appropriately implement section 1033 of the Frank-Dodd Act.
Other Issues Raised
Other points raised in the NAFCU letter:
- Regulation E, including NAFCU’s belief that Congress or the CFPB should confirm that error resolution responsibilities under the Electronic Fund Transfer Act (EFTA, related to Regulation E) “are fairly balanced for credit unions and third-party payment system operators"
- Concerns around the CFPB’s crackdown on "junk" fees
- Unfair, deceptive, and abusive acts and practices (UDAAP), which Thaler wrote that the CFPB should not introduce its own interpretations or expand the scope of its regulatory reach
- The Bureau’s proposed rule on section 1071, specifically NAFCU’s opposition to the complexity and disproportionate effect on credit unions
- Examinations, with Thaler pointing to NAFCU’s request that “the CFPB further enhance its coordination with the NCUA to alleviate examination burdens on credit unions that are over $10 billion and subject to examination by the both the NCUA and CFPB"
- Use of larger participant authority to oversee fintechs, which the letter noted NAFCU’s support
- NAFCU’s support of a five-person commission versus a single director structure
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