February 27, 2014

House passes NAFCU-backed CFPB reform bill

A NAFCU-backed bill that would revise CFPB's structure and expand the Financial Stability Oversight Council's ability to veto bureau rules was passed Thursday evening in the House by a vote of 232-182.

Rep. Sean Duffy, R-Wis., author of H.R. 3193, the "Consumer Financial Protection Safety and Soundness Improvement Act," recognized NAFCU during Thursday's floor proceedings for its support of the measure.

NAFCU Senior Vice President of Government Affairs and General Counsel Carrie Hunt wrote House leaders earlier this month ro urge the bill's passage. "NAFCU supports the concept of creating a five-person board or commission to govern the CFPB which is among potential improvements for the CFPB included in H.R. 3193," she said.

The bill would:

  • allow the FSOC to veto CFPB rules on a simple majority vote of the council's members (excluding the CFPB director);
  • subject CFPB to the congressional appropriations process to facilitate more oversight; and
  • require CFPB to obtain consent from consumers before collecting their nonpublic personal information.

NAFCU is the only credit union trade organization that opposed placing credit unions under direct CFPB regulation; it continues to urge improvements to this agency.