Removing Barriers Blog

CUNA supports Rep. Williams' CFPB Exemption Bill
Posted July 15, 2015 by CUNA Advocacy

On Tuesday, Representative Roger Williams (R-TX) introduced H.R. 3048, a bill which would provide credit unions and banks with less than $10 billion in assets an exemption from CFPB rules.  While we have some technical concerns with the bill, CUNA supports the legislation and will work with Representative Williams to perfect the bill as it goes through the process. 


Section 1022 of the Dodd-Frank Act and a number of the enumerated consumer laws expressly authorize the Bureau to provide exemptions from the requirements of statutes or implementing regulations generally or the requirements of certain provisions specifically.  These various statutory provisions individually and together grant broad authority to the Bureau and constitute a strong legal framework to support the agency’s reasonable use of its exemption authority. 


We believe that the Bureau can and should go much further than it has to exempt credit unions from its rulemakings, because credit unions, unlike other financial institutions, have not engaged in the consumer abuse the Bureau is meant to address.  The imposition of regulations on credit unions designed to curb abuse elsewhere in the financial marketplace has the unintended consequence of reducing access to affordable products and services for credit union members.    


We support this bill because the CFPB has proved to be unwilling to use the exemption authority that Congress has conveyed to it making it necessary for Congress to state it more explicitly, as the legislation does.