WASHINGTON — Both CU trade associations last week indicated support for a proposed Consumer Financial Protection Agency, but both also called for changes and clarifications.
In its letter to the House Financial Services Committee, CUNA called for clarifying that credit unions will not be required to offer a plain vanilla financial product before offering a product that better meets the needs of the member, providing the NCUA chairman a seat on the CFPA Oversight Board, and directing the CFPA Director to take into account disclosure requirements under other laws in order to enhance consumer compliance and reduce regulatory burden.
But CUNA said it remains concerned that the language in the discussion draft does not go far enough to ensure the proposed new agency seek ways to reduce regulatory burden on CUs.
In its letter, NAFCU NAFCU said it supports the creation of such an agency for institutions that have previously been unregulated, and not for depository institutions such as credit unions, which it said are already "more heavily regulated than other financial institutions, and there are many consumer protections already built into the FCU Act."
NAFCU also cited compliance burdens, and like CUNA, said it is concerned that the "Discussion Draft continues to include language granting the CFPA the authority to regulate mortgage, title and credit insurance."
