WASHINGTON — The debit interchange rule and a range of other new requirements on credit cards and mortgages are adding to the regulatory burden on credit unions and will make it harder for them to serve their members.
That was the message in testimony prepared for delivery to a House subcommittee today by CUNA President/CEO Bill Cheney and Gerber Federal Credit Union President/CEO John Buckley.
Cheney speaks of the “creeping regulatory burdens,” that include caps on business lending, changing examination requirements and removal of certain Regulatory Flexibility Act exemptions by the NCUA. He also criticized the Federal Reserve’s proposed rule on debit interchange for telling financial institutions that they must run such programs under government restrictions that “require them to do it for less than it costs to operate the program.”
Buckley, who testified on behalf of NAFCU, said that the regulation was an example of Congress and the Fed having “interjected themselves into a free market system between two industries that work successfully for the American public.’’
Buckley also said credit unions “remain at a loss,” as to why they have to face additional regulations that will be issued by the new Bureau of Consumer Financial Protection. And he added that credit unions welcome the chance to have an ongoing dialogue on changes to the bureau as it begins operating later this year.
The hearing, which is being held by the House Financial Services Subcommittee on Financial Institutions, is scheduled to begin at 2:00 p.m. The testimony was posted on the subcommittee’s website. To read the testimony, go to: http://financialservices.house.gov/Hearings/hearingDetails.aspx?NewsID=1779