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| CFPB should Focus on Consumer Threats, Reducing Burdens |
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As the CFPB creates its strategic plan for fiscal years 2026-2030, America’s Credit Unions provided suggestions Friday to ensure the bureau maintains its focus on bad actors.
Credit unions’ track record of strong supervision and careful risk management, particularly in difficult economic times, “deserves recognition in any framework that supervises or enforces federal consumer financial law,” wrote James Akin, America’s Credit Unions’ head of regulatory advocacy.
Despite this, bureau overreach under previous leadership “imposed broad, one-size-fits-all requirements that treated credit unions as if they presented the same risks as unregulated bad actors,” negatively impacting credit unions’ services to communities, especially rural and underserved ones.
To correct these issues, America’s Credit Unions recommends the CFPB:
• Focus enforcement on predatory nonbank lenders and fintechs, not already-supervised credit unions;
• Clarify the unfair, deceptive, and abusive acts and practices (UDAAP) “abusiveness” standard through formal rulemaking;
• Use authority granted by Section 1022 of the Dodd-Frank Act to tailor rules for credit unions;
• Return to notice-and-comment rulemaking and honor Small Business Regulatory Enforcement Fairness Act (SBREFA) obligations; and
• Reform Civil Investigative Demand and enforcement procedures to ensure due process
Akin also reiterated America’s Credit Unions’ longstanding belief that consumers and financial services providers would be best served with the CFPB funded through the appropriations process and led by a multi-member bipartisan commission.
Copyright © 2024-2026 America's Credit Unions. (link) |
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