November 29, 2023

NAFCU, CUNA detail CU priorities, recommendations for CFPB reform

CapitolNAFCU President and CEO Dan Berger and CUNA President and CEO Jim Nussle wrote to the House Financial Services Committee ahead of today’s hearing where CFPB Director Rohit Chopra will provide the bureau’s semi-annual report to Congress. In the letter, the groups offered support for the committee’s oversight of the bureau while outlining several key areas of concern with CFPB policies that impact the credit union industry.

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, including:

  • the use of the bureau’s authority in a manner that is consistent with the original purpose of the CFPB and the spirit of the Dodd-Frank Act;
  • appropriately tailoring regulations to reduce disruption for community-based financial institutions;
  • consistent transparency during the development and implementation of rulemakings, supervision, and enforcement policies;
  • coordination with the NCUA to avoid the implementation duplicative or contradictory policies; and
  • encouraging and supporting innovation in the consumer financial services marketplace.

The letter also included a breakdown of policies that are issues of concern for credit unions. NAFCU has been vocal about recent proposed regulation, information collection activities, and guidance from the bureau, including its heightened war against “junk fees,” implementation of Sections 1071 and 1033 of the Dodd-Frank Act, and efforts to encourage financial institutions to reduce or remove overdraft fees.

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. 

Read the full letter. The association will monitor today’s hearing, scheduled for 10 a.m. Eastern, as well as Chopra’s appearance before the Senate Banking Committee tomorrow at 10:15 a.m. Eastern.