March 02, 2023

Rep. Mooney reintroduces NAFCU-supported bill to keep CFPB accountable

CFPBRepresentative Alex Mooney, R-W.Va., Wednesday reintroduced, the Transparency in Consumer Financial Protection Bureau (CFPB) Cost-Benefit Analysis Act, which would require the CFPB to employ a more rigorous cost-benefit analysis to better weigh the costs of implementation and compliance with the benefits of a regulation.

Mooney first introduced the bill last April which garnered NAFCU support in an effort to ensure the CFPB operated within its regulatory scope of responsibilities. 

“NAFCU applauds Representative Mooney’s leadership on ensuring transparent evaluation on regulations set forth by the CFPB,” said NAFCU President and CEO Dan Berger. “The Transparency in CFPB Cost-Benefit Analysis Act will ensure the Bureau is held to the same standard as other agencies when reviewing the cost-benefit analysis for its proposed rules. The Bureau's recently proposed rule on credit card late fees and consequential lack of data on its impact, proves the critical need for this legislation. Regulators must understand the overall impact of their rulemaking, whether, through compliance costs or the upshot on competition, especially for smaller financial institutions like credit unions.” 

This bill is especially critical given the CFPB’s recent proposed rule on credit card late fees that would drastically reduce the current safe harbor to $8, which Berger said would cause “financial chaos.” NAFCU encourages credit unions to offer feedback via a survey to support its advocacy to push back on the proposal. The feedback is critical to NAFCU’s efforts to educate the CFPB on how this rulemaking would hurt credit unions and their members.

NAFCU continues to work closely with Congressional leaders and the CFPB to ensure credit unions are not burdened by unnecessary regulations on the industry.