Removing Barriers Blog

Day 1: CUAC Talks Faster Payments, Remittances, Savings
Posted June 05, 2019 by CUNA Advocacy

Today, the CFPB’s Credit Union Advisory Council (CUAC) discussed faster payments, remittances, and the CFPB’s Start Small, Save Up Initiative with Bureau experts. 

Gary Stein, Deputy Assistant Director for the Office of Card, Payment and Deposit Markets, gave a presentation on the potential effects of faster payments on financial services. The presentation included an overview of the Bureau’s faster payments activities and examples of faster payments systems currently in place.  Stein also discussed the CFPB’s consumer protection principles for faster payments.  Members of the CUAC raised the need for faster payments to be paired with appropriate security to prevent fraud and system misuse. 

In the second session of the day, Karuna Patel, Managing Counsel in the Office of Regulations presented on the CFPB’s recent Request for Information (RFI) on the Remittances Rule.  Patel gave an overview of the current rule, findings from the CFPB’s Assessment of the Remittances Rule, and aspects of the rule being evaluated in the RFI.   The CUAC provided feedback on the impacts of the rule, including limiting the availability of remittance services for members, and offered several recommendations on how to improve the rule.  CUNA has called on the Bureau to raise the “normal course of business” threshold to 1,000 remittances per year. 

In the day’s final session, the CFPB presented on its Start Small, Save Up program, which is a financial education initiative to encourage savings.  The CUAC offered examples of the work their credit unions are doing in their communities to encourage savings and enhance financial literacy.  This session was attended by CFPB Director Kathy Kraninger. 

The CUAC meets again tomorrow in a combined session with the Community Bank Advisory Council (CBAC) and Consumer Advisory Board (CAB).