WASHINGTON (3/12/13)--Unregulated nonbank entities and large financial institutions are two of the prime targets of the Consumer Financial Protection Bureau's attention, CFPB Southeast regional director Jim Carley told a bank group last week (American Banker, March 11).
The Credit Union National Association has been encouraging the bureau to focus more attention in 2013 on regulating entities in the financial marketplace that engage in abusive practices, such as payday lenders, that have been unregulated or under-regulated to date. CUNA has also urged the agency to guard against overburdening credit unions with unnecessary rules. In fact, CUNA has called on the CFPB to bring its awareness of the credit union difference into play as it develops any new rules.
In a January letter to the agency, CUNA President/CEO Bill Cheney wrote that credit unions do not always expect to be exempt from new regulations. However, he added, "There are a number of factors unique to credit unions that support liberal use of the CFPB's exemption authorities for our members, and we urge the agency to be as proactive as possible in considering how those authorities should be applied."
"We urge the agency to help direct its appreciation of the way credit unions operate into meaningful regulatory relief for credit unions so that they can do even more to serve their communities," Cheney added.
CFPB Director Richard Cordray will speak before a Senate Banking Committee confirmation hearing today. (See News Now story: Cordray Nomination, Privacy Bill Vote, NCUA Meeting Fill the Washington Week)