October 02, 2013

CU Advisory Council talks CARD Act, mortgage rules

Oct. 3, 2013 – Representatives of NAFCU member credit unions and others that make up the CFPB's Credit Union Advisory Council held its quarterly meeting in Chicago and also attended the bureau's field hearing Wednesday on credit cards.

During its own meeting, the advisory council discussed the CFPB's report on the market impact of the 2009 Credit Card Accountability, Responsibility and Disclosure Act; CFPB mortgage rules set to take effect in January; and the relationships between financial institutions and third-party payment processors.

NAFCU member representatives on the council include John Buckley of Gerber FCU, Mich., Marcus Schaefer of Truliant FCU, N.C., Camille Shillenn of Unified People's CU, Wyo., Helen Godfrey Smith of Shreveport FCU, La., and David Wright of Services Center FCU, S.D.

The CFPB field hearing, which the council attended, focused on the results of the report on the CARD Act's impact on the market. The report showed that, between 2008 and 2012, credit costs and the size of late fees declined for credit card consumers. It also showed that overlimit fees had been "effectively eliminated" and that "responsible access to credit remains available."

The bureau also highlighted areas of continuing concern, such as add-on products which mislead consumers, fee harvester cards, deferred interest products and disclosures about grace periods and other issues.

NAFCU submitted a letter to the CFPB Wednesday pointing out the value credit unions provide their members through their credit-card offerings.