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NAFCU Regulatory Affairs Counsel Ann Kossachev urged the CFPB in a letter Thursday to reevaluate its rulemakings related to first- and third-party debt collection. Kossachev wrote that the CFPB has failed to recognize the unique structure of credit unions, which should be exempted from these rules.

"Credit unions, as member-owned, not-for-profit cooperatives, serve a different purpose in the financial industry," Kossachev wrote. "Unlike large banks, profits and shareholder payouts are not primary objectives for credit unions."

Kossachev was writing in response to the CFPB's request for feedback on its plan to conduct a web survey on debt collection disclosures that will inform future rulemakings on first- and third-party debt collection. The survey would explore consumers' understanding and decision-making process when exposed to debt collection disclosure forms.

The CFPB has indicated it will pursue separate rulemakings on first- and third-party debt collection; a first-party debt collection rule would fall under the CFPB's unfair, deceptive, and abusive acts and practices (UDAAP) authority, and a third-party rule would be made under the Fair Debt Collection Practices Act (FDCPA).

While NAFCU supports the CFPB's separate rulemaking approach, Kossachev said that "credit unions should receive different treatment from regulatory agencies like the CFPB."

"Credit unions work with their members and not against them, especially in situations where a borrower is delinquent on a loan," Kossachev wrote. She also noted results of a 2016 NAFCU survey that found 80 percent of credit union respondents have waived late fees, interest or fines for their members and that another 33 percent have forgiven debts to one or more members.

Kossachev said these rulemakings on debt collection will have a negative impact on the credit union industry and will make it more difficult for credit unions to offer affordable, high-quality products to their members.