Last Tuesday, representatives from the CFPB met with a group of LSCU affiliated credit unions and LSCU advocacy staff to discuss regulatory burden and upcoming proposed rules. The meeting, which took place in Tampa, included officials from Achieva Credit Union, Coast2Coast Financial Credit Union, Railroad & Industrial Federal Credit Union, Suncoast Credit Union, and USF Federal Credit Union. Kacey Bell from Alabama Credit Union, who sits on the CFPB’s CU Advisory Committee, made the trip down from Tuscaloosa to be part of the discussion, as well.
The dialogue started with questions about overdraft protection and the possibility of a rule by the agency. The CFPB didn’t offer much information other than that they have been doing a lot of research and have come up with a sample form, which many of our credit unions have already seen. They hinted that a rule could include more transparency requirements. The LSCU has regularly been in contact with the CFPB on this issue and makes it a point to visit with the agency during the CUNA GAC with a select group of credit unions to discuss.
The group in Tampa also asked questions about the debt collection rule. The CFPB assured the group that as it stands now, the debt collection rule only applies to third party collectors, so it should not affect credit unions.
The CFPB shared that they have started looking at a business lending rule but it will be a long process before anything is released for comment. They shared that a lot of research and work will need to be done to define terms like ‘small business’ and ‘small business loan’ before they can begin to craft a rule. We expect there will be significant input from the credit union industry before any rule is drafted.
The final point of importance from the meeting was that the CFPB shared that they are in the early stages of developing a Regulatory Burden Task Force. This task force would allow for credit unions to better explain their experiences with regulatory burden and may even offer the opportunity for credit unions to invite a representative of the task force to visit onsite to meet with credit union staff and show firsthand the impact and unintended consequences of regulation.
It is always great for our credit unions to take advantage of the opportunity to voice their opinions and concerns to industry decision makers. I’m happy that the credit unions in attendance were willing to have the tough conversations and ask the important questions. It is our responsibility to maintain an honest and open dialogue with our regulators and I am appreciative to those who attended.