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Removing Barriers Blog

Cornerstone Credit Union League Meets with CFPB Director Cordray
Posted June 26, 2015 by CUNA Advocacy

Last week, the Cornerstone Credit Union League met with CFPB Director Richard Cordray and his staff and discussed issues relating to overdraft protection and compliance with new TILA/RESPA rules. In regard to overdraft, the credit unions spoke with CFPB staff and discussed the distinctions between how credit unions offer this service to their members versus how other financial institutions offer this service. The credit unions also noted that they shared the same goal as the CFPB, which was to ensure consumers are provided with good and solid financial products and services. CFPB staff expressed concern that even if the agency has good intentions, all of the regulations imposed on credit unions can add up. CFPB staff stated the goal of rulemaking is not to limit the marketplace, but to make it safe and transparent for consumers.  

The credit unions also expressed concern to Director Cordray about the upcoming TILA/RESPA rules. While one credit union thanked Director Cordray for proposing to extend the compliance deadline on the TILA/RESPA rules until October 3, the credit unions expressed trepidation about liability and enforcement of the rules after that time. Director Cordray responded that he was distressed to see how poorly the vendors have behaved on the TILA/RESPA and other mortgage rules. He also commented that he hoped the extended compliance deadline would help the industry. When Cornerstone commented to Director Cordray that credit unions urge the CFPB to look at the cumulative effect of regulations especially on smaller credit unions, he responded that the CFPB is good listeners and is open to hearing from credit unions on issues, especially when they have data and evidence.  

Overall, Cornerstone communicated to the CFPB that credit unions were the first consumer advocates and as such, consumer service is the number one priority. Therefore, any regulations by the CFPB should not impede a credit union's ability to serve their consumers and provide them with quality products and services.