Fryzel proposes an NCUA Consumer Protection Office

ALEXANDRIA, Va. (7/1/09)--National Credit Union Administration (NCUA) Chairman Michael E. Fryzel will propose the creation of an NCUA Consumer Protection Office in the 2010 Agency Budget.

"The new office will consolidate existing consumer protection functions already administered by NCUA and would create a liaison relationship with relevant external parties, such as the Consumer Financial Protection Agency (CFPA), if that proposed entity becomes a reality," Fryzel said Tuesday afternoon.

President Barack Obama's recently released Financial Regulatory Reform proposal, called for the creation of the CFPA to protect consumers and investors from financial abuses. The proposed CFPA would have broad jurisdiction over credit, savings and payment products.

"While NCUA has always placed a high priority on the enforcement of consumer regulations, and credit unions themselves have a strong track record of pro-consumer conduct, it is important that the highest level of compliance with these essential laws be maintained at all times," Fryzel said.

Creating a dedicated Consumer Protection Office "will make NCUA supervision of consumer protections even more efficient and effective, and will further underscore the priority of this function," the chairman added.