Dakotas CU Reps Meet With CFPB Director Cordray
August 11, 2016 12:33 PM
Consumer Financial Protection Bureau Director Richard Cordray, center, met earlier this week in Bismarck, N.D. with representatives from the credit union community in North Dakota. The meeting was held at the request of Jeff Olson, president of the Credit Union Association of the Dakotas, and arranged by U.S. Sen Heidi Heitkamp (D-N.D.). Representatives from the Bank of North Dakota, Independent Community Bankers of North Dakota and the North Dakota Bankers Association also took part in the meeting
CUADs Olson requested the meeting during CUNAs Governmental Affairs Conference in Washington earlier this year, and the roundtable discussion was largely focused on the mortgage industry, along with brief discussion on CFPBs proposed payday lending rule. The message from bankers and credit union professionals was clear: over-regulation from all corners not just the CFPB is damaging the financial services industrys ability to serve consumers. Participants offered multiple examples of challenges they have faced attempting to serve their communities, many of which are rural ones who are only served by CUs and community banks.
According to CUADs VP of Compliance Amy Kleinschmit (pictured at right), The discussion, while good, emphasized Director Cordrays position that the CFPB is here to protect consumers, even from themselves. These comments were countered by attendees that tried to illustrate how the rules, in some cases, were actually hurting consumers.
Shortly before the Bismarck meeting, CUAD representatives along with CUNA and other state leagues sent Cordray a letter once again calling for regulatory relief and requesting that the bureau exercise its authority to exempt credit unions from all CFPB rulemaking. According to CUAD, more than 400 members of Congress have called on the bureau to use that authority, largely due to the fact that the bureau was created in response to a financial crisis caused by big banks, but that has led to a tidal wave of regulation that has also impacted CUs a consumer-friendly industry that did not contribute to the crisis and did not require a taxpayer bailout.
We appreciate the opportunity to have dialogue with the Director, and I applaud and thank Senator Heitkamp for coordinating and leading the discussion, said Olson. He continued, The biggest takeaway for our credit unions is that we were able to personally share our story and describe in detail how these one size fits all rules and regulations negatively impacts our ability to serve our members. I thought the Director and his staff were very engaged with our participants, and I sincerely appreciate his willingness to listen to our concerns and stories.
