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NAFCU writes to HFSC ahead of CFPB oversight hearing
NAFCU Vice President of Legislative Affairs Brad Thaler wrote to the House Financial Services Committee (HFSC) ahead of today’s CFPB oversight hearing. In the letter, Thaler expressed NAFCU’s “thoughts on some current issues pertinent to the CFPB.”
Regarding the use of small entity exemption authority, Thaler wrote that the CFPB should “provide some degree of regulatory relief for small entities that cannot afford to comply with complex rules and would otherwise be forced to stop offering services to members.” The letter also encouraged the bureau to coordinate with other federal financial regulators to appropriately implement section 1033 of the Frank-Dodd Act.
Additionally, Thaler’s letter discussed:
· Regulation E, including NAFCU’s belief that Congress or the CFPB should confirm that error resolution responsibilities under the Electronic Fund Transfer Act (EFTA, related to Regulation E) “are fairly balanced for credit unions and third-party payment system operators;"
· the CFPB’s crackdown on "junk" fees, in which NAFCU recommends that Congress “closely monitor any CFPB regulatory and supervisory activity related to fees;"
· unfair, deceptive, and abusive acts and practices (UDAAP), which Thaler wrote that the CFPB should not introduce their own interpretations or expand the scope of its regulatory reach;
· the bureau’s proposed rule on section 1071, specifically NAFCU’s opposition to the complexity and disproportionate effect on credit unions;
· examinations, in which Thaler reiterated NAFCU’s request that “the CFPB further enhance its coordination with the NCUA to alleviate examination burdens on credit unions that are over $10 billion and subject to examination by the both the NCUA and CFPB;"
· use of larger participant authority to oversee fintechs, which the letter noted NAFCU’s support; and
· NAFCU’s support of a five-person commission versus a single director structure.
NAFCU will monitor the hearing and provide any updates via NAFCU Today.