McDaniel, Donley among CUAC members seeking reg relief
Thursday, March 31, 2016
As reported by CUNA Advocacy, the CFPB’s Credit Union Advisory Council (CUAC) participated in closed-door meetings last week with regulators, and culminated the day with an open meeting where the group discussed elder financial abuse and the CFPB’s strategic outlook. CUAC members Jim McDaniel, CEO of Heritage Trust, and Bob Donley, COO of Members Credit Union were present at the meeting.
CFPB Director Richard Cordray provided opening remarks during the open session and participated in the discussions throughout the meeting. During the meeting, several issues outlined in the CFPB’s strategic outlook were discussed.
Credit unions remain concerned that including credit union products and services within policy makings following from the strategic outlook could add to the regulatory burdens that they already face.
In the discussions, several CUAC members questioned the CFPB about rulemakings that have, or could, impact credit union operations and members. For example, a CUAC member questioned whether the forthcoming arbitration rulemaking, which will likely result in more class action lawsuits, will actually benefit credit union members instead of the plaintiffs’ bar. CUNA has expressed similar concerns to the CFPB.
Another member of the committee noted that any upcoming debt collection rules from the CFPB should allow credit unions to continue contacting their members about outstanding debts, noting there should be different considerations between those who actually cannot pay their debts, and those that simply don’t want to. In the past, CUNA has advocated that first-party creditors should be treated differently than third-party debt collectors.
One CUAC member said he had hoped the CFPB would give credit unions a “breather” to digest the existing rules affecting credit unions before beginning to work through the lengthy agenda encompassed in the strategic outlook. Credit unions continue to struggle to find the resources to implement the massive overhaul to rules in the mortgage market, as well as other recent policy-makings from the CFPB.
The meeting also included a discussion of elder financial abuse and efforts to protect senior credit union members and their families, an issue in which CUNA has been actively participating. A bill recently introduced in the Senate by Sen. Susan Collins (R-Maine), which is supported by CUNA, would provide legal immunity when reporting elder abuse. This bill would encourage more wide-scale reporting when fraud or abuse is suspected.
A recording of this meeting will be posted on the CFPB’s website in the coming weeks.
CUAC Members Ask CFPB for a “Breather”