Mon, Apr 6, 2015
More than a dozen member CEO’s and CU senior staff as well as Advocacy team members joined together to hold a Roundtable at the Consumer Financial Protection Bureau (CFPB) on Friday, April 3. The Roundtable was the first of two scheduled for 2015 (next: Friday, Oct. 9) in order to bring together credit union representatives and Bureau officials with the goals of relationship building, keeping lines of communications open as well as discussing in more detail issues that affect the industry particularity upcoming Bureau rulemaking and regulations.
Members met with among others, Elizabeth Ellis, Deputy Assistant Director of the Office of Financial Institutions and Business Liaison, Jennifer Stockett, Sr. Advisor, External Affairs, also with the Office of Financial Institutions as well as Stock Steckel, Director of the Office of Consumer Response & Stakeholder Engagement. These senior officials weighed in on the agenda items we had set for our discussion including but not limited to: CFPB Consumer ‘Complaints’ Website, Payday Lending, Overdraft Protection, the Bureau’s recent request for information relating to the 2009 Credit Card Accountability Act and the TILA-RESPA Integrated Disclosure Rule (TRID).
On all of these issues, we had an open and frank exchange with Bureau officials on how all these affect credit unions. There was general concern about the relatively new consumer website, given its volume (approx. 558,000 consumer comments posted since July 2011) not being necessarily the best way to equitably pursue legitimate consumer concerns as they are neither vetted by the bureau nor is the financial institution in question given much time to respond before comments are posted on the site.
In addition, the group spent a considerable amount of time on overdraft protection. As the Bureau continues to gather information from large financial institutions and core processors, member CEO’s expressed concern that any upcoming regulations could erode a major source of non-interest income for credit unions by affecting programs in place in which members opt-in and are generally happy with according the feedback credit unions are receiving. As discussed, the timeline for any new overdraft rulemaking would begin no earlier than the end of 2015. Given a small business review panel, public comment period and other timing issues, the process would not be finalized until the end of 2016 (at the earliest) which would mean a 2017 implementation date.
The overdraft issue is one of several issues which the advocacy team will continue to weigh in on in the months ahead at the CFPB as well as with the NCUA and our Members of Congress given their importance to all members and stakeholders. The Roundtables are very important in order to allow Bureau officials to hear directly from member CEO’s on how rulemaking and guidelines affect CU’s and we must continue to make them hear us moving forward. We encourage you to participate and weigh in on those areas that peak your interest, CU operations and schedule.
For more information: Glen Cooney – VP, Advocacy & Legislative Affairs / firstname.lastname@example.org / 443-325-0775