November 30, 2023

CFPB’s Chopra grilled on bureau’s regulatory approach

CFPBCFPB Director Rohit Chopra appeared before the House Financial Services Committee Wednesday and will appear before the Senate Banking Committee today to deliver the bureau’s semi-annual report to Congress.

During Wednesday’s hearing, Chopra was questioned on the bureau’s rules to implement Sections 1071 and 1033 of the Dodd-Frank Act. Additionally, representatives questioned Chopra on the bureau’s proposed rule related to limit credit card late fees, with many agreeing on the need for a proper definition of the term “junk fees.”

NAFCU has been vocal about recent proposed regulation, information collection activities, and guidance from the bureau, including its heightened war against “junk fees” and efforts to encourage financial institutions to reduce or remove overdraft fees.

NAFCU President and CEO Dan Berger and CUNA President and CEO Jim Nussle wrote to both the House Financial Services Committee and Senate Banking Committee this week to offer support for the committee’s oversight of the bureau and outline several key areas of concern with CFPB policies that impact the credit union industry.

In the letters, Berger and Nussle reiterated both associations’ longstanding call for legislative improvements to change the structure of the CFPB from a single director to a bipartisan commission and to require the bureau to go through the congressional appropriations process to increase accountability and transparency.

In addition, Berger and Nussle outlined a list of several recommended principles that should guide CFPB action and a breakdown of policies that are issues of concern for credit unions.

NAFCU actively advocates for reforms to the bureau and will continue to tout the credit union industry’s mission of meeting their 138 million members and local communities needs with safe, affordable financial products and services. 

The association will monitor today’s Senate Banking Committee hearing, scheduled for 10:15 a.m. Eastern.