By Ray Birch
WASHINGTON—President Trump has signed an executive order aimed at eliminating a handful of federal advisory committees. And among them, the CFPB’s Credit Union Advisory Council (CUAC).
The order also eliminates the Community Bank Advisory Council and the Academic Research Council.
The move removes an important credit union communication channel with the CFPB, and to all lawmakers, sources say, adding that a direct communication channel with D.C. is critical with members of Congress—who are typically more familiar with banks. The elimination of the CUAC, while a loss, may drive the movement to find more ways to tell the CU story, one Washington insider asserts.
James Akin
"The CUAC provided a critical forum for credit unions to share their expertise with CFPB leadership, to help them understand the real-world impacts on the 140 million Americans who rely on credit unions,” said James Akin, America’s Credit Unions head of regulatory affairs. “While credit union expertise was not always heeded, eliminating this council removes an essential channel for dialogue. In the absence of the CUAC, we will increase our direct engagement with the CFPB. Our industry’s mission, to prioritize people over profit, remains unchanged, and we will continue to push for policies that protect the cooperative financial system."
‘Unfortunate’ Decision
The Defense Credit Union Council emphasized the elimination of the CUAC largely reflects President Trump’s efforts to scale back the size of government.
“It's unfortunate the council has been done away with,” said DCUC Chief Advocacy Officer Jason Stverak. “Our hope is the door for communication for credit unions to communicate with all levels of the government remains open in the interim, as the new government structure is put into place.”
While the Community Bank Advisory Council was also chopped, Stverak agreed that credit unions need a direct line to D.C.
Jason Stverak
“Whether Washington completely understands credit unions has been a general concern for us among every administration, whether it's Republican or Democrat,” Stverak said. “There have been more bank lobbyists, more bank supporters, more former members of banks in every administration, at the Treasury, FDIC, OCC etc. And that breeds familiarity. That is why we, as credit unions, need to continue to expand our efforts to educate, inform and sometimes let people know that credit unions and banks are different entities and have different needs. But both equally form the financial eco-structure that is the engine of the American economy.”
Stverak said the decision by Trump is a loss for credit unions, but an opportunity, as well.
“We must now find even more new ways to communicate our message to the executive branch and to all lawmakers in Washington,” he said. “I think with the massive changes that are undergoing at the CFPB right now that the effectiveness of the CUAC would have been negligible, at best. That is why it's going to be contingent upon us to find new ways to ensure the credit union message is heard loud and clear by 1600 Pennsylvania Avenue, and by every level of authority Washington.”
As CUToday.info has reported, Russell Vought, acting director of the CFPB, has shut down the agency and let go more than 150 employees. As CUToday.info also reported, Trump has nominated Jonathan McKernan to serve as CFPB director. McKernan awaits confirmation from the Senate.