Removing Barriers Blog

CUNA Attends CFPB Director's First Policy Speech
Posted April 18, 2019 by CUNA Advocacy

Earlier this week, CUNA represented America’s credit unions at the Bipartisan Policy Center for CFPB Director Kathy Kraninger’s first policy speech.  In her speech, the Director said the Bureau will focus on “prevention of harm to consumers.” Additionally, the Bureau will work to level the playing field for financial services providers while holding bad actors accountable, and it will work to develop clear rules of the road for regulated financial entities.

“We are encouraged by the approach that Director Kraninger laid out today as well as her engagement with credit unions in the first few months of her term,” said CUNA Chief Advocacy Officer Ryan Donovan. “We look forward to engaging her more in an effort to reduce regulatory burden and put an end to one-size-fits-all regulation.”

Kraninger said during her remarks that the Bureau will use all “tools Congress gave the Bureau to prevent consumer harm,” including education, regulation, supervision and enforcement.

Additional takeaways from the Director’s speech include:

Mission of the CFPB

  • The “CFPB’s mission critical to economy.”
  • There are many different views on how to best protect consumers.
  • The Bureau has a goal to move the needle on increasing the number of Americans that can handle a financial shock, and will achieve this goal by working with industry partners to increase America’s awareness about the need for emergency savings. 

Rulemaking and Guidance

  • The CFPB is going to work to develop clear rules of the road for regulated financial entities.
  •  “The best rules need best processes,” which would include robust market analysis.
  • “No one benefits from rules rushed out the door,” and the CFPB will proceed deliberately in the rulemaking process.

Supervision Authority

  • To quote a CFPB staffer, “people act differently when they know there’s a regulator that will be checking their work.” 
  • “Supervision is the heart of this agency” as evidenced by the percentage of their resources that are devoted to supervision activities.  
  • The CFPB “must recognize bureau is not the only regulator conducting an institutions examinations” and develop relationships with other regulators and state attorneys general to ensure consumers are well protected. 

Enforcement

  • Enforcement is an essential tool since there will always be bad actors that don’t comply with the law.
  • The CFPB adopting a “purposeful enforcement” regime can ensure effective compliance by regulated entities and right wrongs.