Leagues and CUNA submit letter to CFPB on exemption authority
Thursday, August 11, 2016
The Carolinas Credit Union League and all 37 other state associations joined CUNA in an August 10 letter to CFPB Director Richard Cordray, again raising the need for exemption of credit unions from rulemaking.
Consumer Financial Protection Bureau Director Richard Cordray (Credit: Washington Times)
The letter raised four communications from Capitol Hill, all of which requested that Director Cordray use the CFPB’s exemption authority laid out in Section 1022 of the Dodd-Frank Act. Two of those communications were signed by a combined 399 members of the U.S. House and Senate, comprising a supermajority of both chambers. All but one member of the Carolinas delegation signed the correspondence. Congresswoman Virginia Foxx (R-NC5) said the letter did not go far enough and that she would prefer to see the CFPB go away.
In this latest letter, CUNA and the leagues communicate frustration over the unwillingness of Director Cordray to recognize the will of Congress with regard to the exemption.
“Where there is no evidence of harm to or abuse of consumers, the Bureau should exercise this authority so that providers that have been serving consumers in a safe and affordable manner can continue to do so efficiently. The Bureau’s resistance to the plain language of the statute and the subsequent bipartisan message of more than three-quarters of the elected representatives in the federal government is baffling and disrespects the consumers who elected the Congress.”
The strong language in CUNA’s latest correspondence sums up the frustration of many months of pleas falling upon deaf ears.
"I wholeheartedly support all of these efforts to get Director Cordray to use the tools he has to support credit unions’ service to communities,” stated CCUL President John Radebaugh. “The CFPB needs to recognize the fact that these policies aren’t helping consumers—they’re hurting them by threatening the existence of the financial institutions that serve them."
"The costs of these regulatory burdens are unbearable. How many more credit union consolidations will it take before the CFPB recognizes the cost and consequences of its policies?"