On Friday, the MD|DC Credit Union Association hosted the industry’s first in-person roundtable with Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra and local credit union leaders. Chopra called a key priority engaging with smaller banks and credit unions that are not directly overseen by the CFPB.
“We appreciate that CFPB Director Chopra took the time to meet face-to-face with our members and the opportunity to share the credit unions’ consumer-centric approach to financial services,” said John Bratsakis, President- CEO of the MD|DC Credit Union Association. “It was a productive discussion that touched on a wide range of issues affecting the region’s credit unions and the 2.2 million members they serve. We look forward to continued engagement and further opportunities to influence office initiatives as they develop.
During the hour-long discussion, credit union leaders explained how diverting resources to follow overly burdensome regulations designed for big banks can have a negative effect on consumers.
Chopra described the office’s main focus areas, including:
- Exam fees such as overdrafts, insufficient funds fees and credit card late fees to understand the impact on consumers. Director Chopra made it clear that the focus is on encouraging financial institutions to review fee policies to ensure they operate in the best interest of consumers.
- Meeting the Challenges of the Highly Consolidated Core Service Provider Market ensure fair and market-oriented, adaptable and flexible services.
- Preserve the banking relationship in the age of consolidation and digitalization by giving consumers the right to timely information about their accounts with banks and credit unions with over $10 billion in assets.
- Supervision of non-banking entities and fintechs protect consumers and level the playing field between banks and non-banks.
- Establish a framework to give consumers rights of access to their financial data through Section 1033 of the Dodd-Frank Act.
- Development of small business loan data collection rules related to the collection of data on loans to women, minorities and small businesses under the Equal Credit Opportunity Act. Credit unions have expressed concern about several required data points that are not routinely collected during the lending process.
Leaders of credit unions are encouraged to submit a application to serve on the CFPB’s Credit Union Advisory Council, which advises the office on product and service regulation from a unique credit union perspective. The deadline to apply is July 24.