Newsroom

November 10, 2012

CFPB blogs on CU Advisory Council meeting

The Consumer Financial Protection Bureau has posted a blog on its website that provides an overview of the discussion at the first Credit Union Advisory Council meeting, which was held Oct. 11.

The blog, written by the CFPB web team, also highlights key points from the first Community Bank Advisory Council, held Oct. 10, and includes links to a written transcript and YouTube video of the first Consumer Advisory Council meeting, held Sept. 27.

A key point made by both the Credit Union Advisory Council and the Community Bank Advisory Council is that the CFPB's regulations are problematic for smaller financial institutions to adapt. The blog notes that "smaller financial institutions like community banks and credit unions can be greatly challenged by the presence of a new regulator and that the Bureau should work to make sure that the cost of complying with new regulations is not overly burdensome on small institutions."

NAFCU has been making this very recommendation to the CFPB from the very beginning. One specific approach that the association continues to urge the bureau to take is to limit its proposals on credit unions to those requirements that have been mandated by the Dodd-Frank Act. That would allow credit unions to comply with all the other rules it has already proposed.

The Credit Union Advisory Council meeting also included discussion on how credit unions are "leveling the playing field for consumers" and their specific role in providing viable, low-cost alternatives to high-interest payday loans and financial education.

The goal of the 15-member Credit Union Advisory Council, which includes four NAFCU-nominated representatives, is to provide direct feedback to the CFPB on its policy development, research, rulemaking and engagement functions. All 15 members are from credit unions with assets of $10 billion or less.

The Consumer Advisory Board includes two credit union representatives.

All three groups will meet throughout the year with the CFPB to offer input on a range of different topics.