WASHINGTON (8/15/12)--Credit Union National Association (CUNA) CEO Bill Cheney discussed CUNA's concerns about the Consumer Financial Protection Bureau's (CFPB) remittances rule, qualified mortgage proposal, and regulation of overdrafts with CFPB Director Richard Cordray in a Tuesday conversation initiated by the CFPB.
The CFPB director regularly contacts Cheney to stay abreast of credit union viewpoints.
Cheney during the discussion noted that the implementation costs of the CFPB's remittances rule would make it untenable for some credit unions, possibly causing them to stop providing a valued service to their members.
The CFPB's final remittance transfer rule, which is scheduled to take effect on Feb. 7, would require remittance transfer providers to disclose the exchange rate, all fees associated with a transfer, and the amount of money that will be received on the other end. Remittance transfer providers also will be required to investigate disputes and correct errors.
The CFPB last week announced that financial institutions that provide 100 or fewer remittance transfers per year would be exempted from the terms of the rule. The CFPB has estimated that this exemption would protect 80% of credit unions, but credit unions that are not exempted are very concerned about the rules, Cheney said.
Cheney emphasized that the remittance rules have not taken effect yet, and asked Cordray to discuss remittance concerns with credit unions.
The CUNA CEO said CUNA is also developing a list of best overdraft practices and wants to work with the CFPB, but credit unions are concerned that reasonable overdraft programs will be overregulated.
Cheney also reiterated CUNA supports the safe harbor approach in the CFPB's pending qualified mortgage regulations. (See Aug. 14 News Now item: CUNA, CFPB discuss qualified mortgage concerns.)
Cordray indicated he would like to work with CUNA and credit unions on these issues going forward.
"We had a productive discussion, and I appreciate the outreach from the CFPB director," Cheney said afterward.