Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
NEW: CUNA Offers 35 Steps For CU Reg Relief
WASHINGTON (4/10/13, Updated 3:30 p.m. ET)--Credit unions did not cause the financial crisis and don't engage in abusive practices, but "are being forced to pay the price and comply with the same rules designed for those who did cause the crisis," Security One FCU, Arlington, Texas, CEO Pamela Stephens said on behalf of her credit union and the Credit Union National Association at a House Financial Services subcommittee hearing today.

CUNA offered a 35-point plan for comprehensive regulatory relief that would help credit unions better serve their members by ceasing to require the diversion of so many resources to compliance with burdensome regulation.

Stephens, who is CEO of $55-million-in-assets Security One FCU, Arlington, Texas, told members of the House Financial Services financial institutions and consumer credit subcommittee that the burden of complying with ever-changing regulatory requirements is particularly onerous for small institutions like hers.

"If a smaller credit union offers a service, it has to be concerned about complying with most of the same rules as a larger institution, but can only spread those costs over a much smaller volume of business," she said in a prepared statement.

Regulatory burden is "a key reason that roughly 300 small credit unions merge into larger credit unions each year," she added.

Around 3,000 credit unions have five or fewer employees, CUNA notes.

"Regulatory burden is not a new problem for credit unions, but it is getting worse," she said. Since 2008, credit unions have been subjected to 157 rule changes from over 15 agencies, with most written before the Consumer Financial Protection Bureau issued its first rule. "That's almost one a week," Stephens said.

See more in tomorrow's News Now.


RSS print
News Now LiveWire
#FreeGasFriday courtesy of @tvfcu, TN #creditunions http://t.co/wDRFYJVlpz
12 hours ago
If you were unable to watch or attend @cuna 's @thehill Hill forum on Wed., you can now watch the archived version: http://t.co/FhUnp7HbU8
14 hours ago
Time is running out. If you haven't taken the #NewsNow readership survey, please click here now: http://t.co/4Gp6C2Wa4o
14 hours ago
African financial inclusion possible with mobile money: @IMFNews study http://t.co/0V5DTQToxY
15 hours ago
Louise Herring's birthday is Saturday. 105 years later, her legacy lives on through her kids http://t.co/oMqGADmo0d http://t.co/T3NmS9NqEY
15 hours ago