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NAFCU talks remittances, UDAAP, more with CFPB
NAFCU's advocacy team remains engaged in Washington on key credit union issues and yesterday held a call with members of the CFPB's Office of Financial Markets and the Card and Payments Markets to discuss the bureau's remittance rule; the "abusive" prong of the unfair, deceptive, or abusive acts or practices (UDAAP) provision; consumer access to financial records; and faster payments.
On the bureau’s proposal related to its remittance rule, NAFCU has continuously pushed the CFPB to reduce the remittance rule’s burden on credit unions. Although NAFCU had previously urged the Bureau to adopt an even larger change, the proposed rule included an increase to the safe harbor threshold from its current level of 100 transfers in the previous and current calendar year to 500 transfers. NAFCU Senior Counsel for Research and Policy Andrew Morris sent a letter to the CFPB in January addressing NAFCU's continued concerns about remittance transfers under the Electronic Fund Transfer Act.
The group also discussed the CFPB’s recently released policy statement clarifying the “abusive” prong of the unfair, deceptive or abusive acts or practices (UDAAP) provision. NAFCU has long urged the bureau to offer clarity, including specific guidance on prohibited practices.
Additionally, they discussed Section 1033 of the Dodd-Frank Act related to consumer access to financial records. NAFCU previously recommended to the CFPB that consumers' financial information must be safely shared with third parties without adversely impacting credit unions. However, NAFCU is supportive of the CFPB's efforts to promote consumer access to new technologies and financial services.
On faster payments, NAFCU believes that accessibility to affordable faster payment capabilities will provide many benefits for credit unions and their members. The Federal Reserve is currently working to develop its FedNow Service; NAFCU has urged the Fed to expedite its creation and offered recommendations to strengthen its benefits for credit unions and consumers.
NAFCU has met with the CFPB to talk about its innovation policies and looks forward to continuing the dialogue towards further relief of regulatory burdens for credit unions.