CUNA Meets with the Consumer Financial Protection Bureau
On June 25, the Credit Union National Association's (CUNA) Regulatory Advocacy group met with top officials of the Consumer Financial Protection Bureau's (CFPB) regulatory division to discuss a range of issues of concern to credit unions. Leading off with serious concerns about the direction the agency may be going in regulation of overdraft issues, CUNA previewed its comment letter that was filed June 29 and urged the agency not to regulate overdraft fees. CUNA urged the CFPB to allow as much flexibility for institutions as possible in structuring reasonable overdraft programs. The meeting also focused on major concerns with the agency’s final remittance transfer rule, set to take effect February 7, 2013, and the proposed “safe harbor” designed to provide some relief to credit unions and others that are not in the primary business of remittance transfer services. However, the safe harbor would only apply for the first 25 transfers per year and credit unions that provide these services to their members have many more transfers each year. A final rule on the safe harbor is expected in August or September.
NCUA Board Chairman Debbie Matz, after meeting with CUNA, will be talking again with CFPB Director Richard Cordray about credit unions’ concerns as they relate to the remittance regulation, particularly the safe harbor.
CUNA also raised concerns about mortgage lending and related issues the agency is addressing.
Click here (requires password) for a copy of the memo that CUNA provided to the agency for the record regarding issues that were discussed.