Removing Barriers Blog

Cordray Defends Use of Exemption Authority Before Senate Banking Committee
Posted April 07, 2016 by CUNA Advocacy

At today's hearing CFPB oversight hearing in the Senate Banking Committee, the exemption authority issue was front and center.  Director Richard Cordray delivered testimony and answered questions from members. Senator Tim Scott (R-SC) asked CFPB Director Cordray whether he would use the exemption authority granted by Dodd-Frank to further tailor rules for credit unions. Senator Scott also noted that credit union consolidation has accelerated due to increased regulation. Director Cordray responded by saying that the agency would continue to tailor regulations on a case by case basis, but he held firm to his previously stated views on the CFPB’s use of exemption authority. He did however state that he was glad that credit union membership is at an all-time high. A video of this informative exchange can be viewed here

In regard to upcoming rulemakings, the director suggested that final Prepaid and Payday rules are coming soon.

Senator Bob Corker (R-TN) asked Director Cordray how consumers can avoid the spiral of payday lending.  In his response, Cordray mentioned credit unions and the PAL program as good and important options. He said that any rulemaking should allow credit unions to continue offering the PAL program.

Before this hearing, we submitted this letter for the record. The full hearing can be viewed here.