Removing Barriers Blog

CFPB Holds Meeting of Credit Union Advisory Council
Posted October 13, 2015 by CUNA Advocacy

Last week, the CFPB held its second annual meeting of the Credit Union Advisory Council, or CUAC. This council is one of four that the CFPB voluntarily convenes several times a year, to hear input from external stakeholders. Before this particular CUAC last week, CUNA staff met with some council members for breakfast to discuss their regulatory concerns. The CFPB recently announced eight new CUAC members, six of whom are from CUNA affiliates.  

New and returning CUAC members met all day at the CFPB on Thursday to discuss current CFPB rulemakings and other regulatory issues impacting credit unions. Credit unions are expecting proposed or final rules on all of the following issues within the next few months-

  • HMDA final rule
  • Prepaid final rule
  • Payday, Small-Dollar proposed rule
  • Debt collection proposed rule
  • Overdraft proposed rule
  • Arbitration proposed rule

During the public session, the council discussed risks with emerging payment systems. CFPB Director Richard Cordray provided opening remarks and sat in on the panel discussion on this issue. In his opening remarks he stated-

“The Consumer Bureau has been persistently advocating for the development of faster and safer consumer payment capabilities in new and existing payment systems. During today’s discussion, we would like to hear from you about how credit unions are experiencing issues in the payments space. Among our discussion topics, we want to know what you think about some key questions. What are small financial institutions doing to accommodate and improve consumer needs? What new developments are your institutions currently involved in? If your institution is not involved, what are the barriers to entry and how can you bring your perspective to the table?”

Deposits Market Program Manager Gary Stein then provided an overview of the CFPB’s efforts in payments issues, and highlighted the tradeoff between new, faster systems, and risks of fraud and consumer harm. Participants on the panel expressed some concerns about how small credit unions can keep up with some of the compliance burdens associated with faster payments, especially the risk of entering long-term contracts with vendors who may not be keeping up with the latest technological developments that members demand.

A video of the discussion should be available on the CFPB website in the next few months.