Consumer Bureau Will Soon Flex Its Muscles
The new Bureau of Consumer Financial Protection–which will be the driving force behind the writing and enforcement of a myriad of consumer regulations–isn’t scheduled to begin operating until July.
However, credit unions already have a general idea about some of the new requirements they will have to comply with on everything from credit card rules to mortgage disclosures.
All credit unions have to comply with rules issued by the bureau but the bureau will only have primary enforcement power over those credit unions with assets of more than $10 billion: Navy FCU, Pentagon FCU and State Employees CU of North Carolina. However, the bureau can go on joint examinations with the NCUA if there is a practice that the agency is concerned about.
The bureau will enforce the change to the Truth in Lending Act that mandates that the measure’s provisions apply to loans of up to $50,000. This is an increase from $25,000 and that threshold will be adjusted annually based on the Consumer Price Index.