CFPB Silent on CU Blanket Exemptions
Members of the Consumer Financial Protection Bureau’s Credit Union Advisory Council told Credit Union Times that CFPB officials listen to credit union concerns and seem to understand the unique relationships between credit unions and their members. However, they said, CFPB officials don’t have an answer for why they can’t simply exempt credit unions altogether from some or all regulations.
John Buckley, president/CEO of the $124 million Gerber FCU of Fremont, Mich., attended the council’s March 12 meeting in Washington. He said while CFPB officials seem to appreciate that credit unions didn’t cause the housing meltdown, they also seem to feel constrained by Dodd-Frank and the law’s congressional mandates, which “doesn’t really allow for common sense implementation.”
Marc Schaefer, president/CEO of the $1.6 billion Truliant FCU, attended the meeting and confirmed the group has asked the CFPB pointblank for a credit union exemption, but hasn’t received a satisfactory answer. Schaefer said the group has further suggested the CFPB expand its exemptions to at least include credit unions that serve low-income or underserved areas.
Credit unions would do themselves a favor developing a litmus test that would help the CFPB feel more comfortable exempting the cooperatives from rules designed to protect consumers, he said.