Credit unions are unique financial institutions not motivated by profit and they are already overregulated and the new consumer bureau should be reluctant to add to the regulatory burden.
That’s the message NAFCU and CUNA conveyed in comment letters to the new Consumer Financial Protection Bureau.
“Special consideration should be given to ensure that rules aimed at financial institutions with different corporate structures, different products and different financial incentives do not create unintended consequences for not-for-profit credit unions,” NAFCU Associate Director of Regulatory Affairs Dillon Shea wrote in a comment letter.
He added that credit unions are concerned that the bureau, which is scheduled to begin operating on July 21, will write new regulations on mortgages and credit cards, even though new regulations have been written in those areas recently.He praised the efforts of the CFPB in proposing changes for combining the disclosure forms under the Truth in Lending Act and Real Estate Settlement Procedures Act.
CUNA Deputy General Counsel Mary Mitchell Dunn wrote that credit unions are in favor of reasonable consumer protections but urged the bureau top minimize the new requirements with which credit unions have to comply.