Removing Barriers Blog

Credit Union Advisory Council Meets in DC
Posted September 02, 2016 by CUNA Advocacy

This week the Credit Union Advisory Council (CUAC) met in Washington, DC where they discussed a number of pressing issues for the credit union industry including youth financial literacy and debt collection in the open session. Director Cordray also provided opening remarks where he noted that credit unions are “pace setters when it comes to consumer education.” He also mentioned that credit unions are leaders in youth financial education by “getting into the classroom, on public television and having in-school branches.”

Cordray also noted that responses to a FINRA study about National Financial Capability Study revealed that half of those participating did not have three months of emergency savings. And, more than a third said they likely would not have enough money to cover an unexpected expense of $2,000.

These statistics are in line with concerns credit unions have been raising to the CFPB about why it is so important not to inhibit safe and affordable small dollar credit options from credit unions.

During the open session, the CUAC also discussed the proposals under consideration as required by the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA) for the Fair Debt Collection Practices Act (FDCPA). A SBREFA panel focused on third party debt collectors was held in Washington, DC last week.

During this discussion CUAC members highlighted some of the many differences between credit union communication and debt relief efforts with distressed consumers, as opposed to the collection practices of for profit third party debt collectors.

CUNA is very appreciative of all of the CUAC members, who contributed their time and resources this week to provide the CFPB with their expertise and operational perspective on issues facing credit unions.