Members of Wisconsin's Congressional delegation co-signed a letter to the Consumer Financial Protection Bureau (CFPB) to ask that it exempt credit unions from burdensome regulations in order to focus rule-making on bad actors.
329 Members of Congress have co-signed the letter, including Wisconsin's:
The recent CUNA Governmental Affairs Conference in February gave Activists an opportunity to ask their representatives, such as Rep. Reid Ribble (above, behind desk) to sign on to the letter. Besides this grassroots and legislative input the CUNA/League/credit union system's 360 Degree Advocacy approach involves regulatory analysis, economic research, legal input, communications and more. The League encourages all credit unions to play a role in ongoing regulatory advocacy.
The letter urged CFPB Director Richard Cordray, who has argued against exercising the agency's exemption authority, to account for the burden tied to compliance, particularly for smaller entities such as credit unions and community banks.
Cordray has argued that Congress would not have intended CFPB to make broad exemptions that it did not already account for when passing the Dodd-Frank financial reforms.The Credit Union National Association has cited CFPB's authority to do so, however. CUNA's Removing Barriers Blog explains more.
Policymakers can be effective with regulatory agencies for which they have oversight; the CFPB's role is to implement the intent of the federal financial system reforms under Dodd-Frank, which Congress can continue to weigh in on.
Studies by both CUNA and the Government Accountability Office (GAO) found that financial services have either been limited or discontinued - and the costs to provide services has increased - because of regulatory burden. CUNA's study tallies the cost of regulatory burden at more than $7 billion annually.
- CFPB Director Cordray's remarks at CUNA GAC
The Unite for Good effort is an internal growth strategy developed by CUNA in conjunction with its Board, state leagues, credit unions and system partners. The plan's action steps - to remove barriers, increase awareness and foster service excellence - are aimed at helping more credit unions become their members' primary financial institution by compelling members to see credit unions as their best financial partner. Read more articles in our Unite for Good series