Removing Barriers Blog

CUNA Highlights Exemption Authority under Dodd-Frank to CFPB
Posted February 12, 2016 by Chandler Schuette

During a CFPB and NCUA joint agency webinar, Bureau Director Richard Cordray was asked whether the CFPB would exempt credit unions from CFPB rulemakings. Cordray responded that he was not able to allow such an exemption because the U.S. Congress was not willing to allow it.

CUNA President/CEO immediately responded with a letter expressing deep concerns about this misinterpretation of Congress’ authority. Nussle said the director's interpretation is contradicted not only with a plain reading of the statute but a number of legal opinions from industry experts. The letter provided specific language in Section 1022 of the Dodd-Frank Act contradicting Cordray’s interpretation.

CUNA has urged the CFPB to use this exemption authority, particularly for rulemakings that should be aimed at bad actors or those who actually caused the Dodd-Frank Act. A letter this week to the House Financial Services Committee argued why the CFPB should exempt credit unions from the forthcoming payday, and small dollar loan rulemaking.