ARLINGTON, Va.–With the federal stimulus bill no longer dominating the agenda in Congress and credit unions, attention is turning back to some traditional issues, including CFPB oversight.
As CUToday.info reported, the Consumer Financial Protection Bureau said it is rescinding its Jan. 24, 2020 “Statement of Policy Regarding Prohibition on Abusive Acts or Practices” (UDAAP).
The change means the agency will be able to assess financial penalties, which it says it needs to be able to do to force compliance. The authority had been dialed back under the Trump Administration.
NAFCU said the change will create confusion unless greater clarity is provided.
“They are saying they will be doing everything and anything to stop bad behavior,” said NAFCU EVP and General Counsel Carrie Hunt. “That is not necessarily a bad thing, but we need rules of the road.”
The announcement has raised a lot of questions and has the potential for leaving credit unions in a very difficult position.
“When your only recourse is to sue, that’s untenable,” said Hunt.
Additional reporting can be found here.