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NAFCU Reg Committee highlights DOL proposal, SCOTUS case, interchange, more
NAFCU’s Regulatory Committee met Tuesday to discuss the latest issues and proposed rules open for comment, including the Department of Labor’s (DOL) proposed rulemaking on wage exemptions, the oral arguments from the CFPB v. CSFA U.S. Supreme Court case, and recent NAFCU advocacy efforts on artificial intelligence and interchange.
NAFCU recently published a Regulatory Alert on the DOL’s proposed rulemaking to change the thresholds and methods used to delimit overtime and minimum wage exemptions. In addition, the committee reviewed the CFPB’s outline of proposals for its rulemaking related to the Fair Credit Reporting Act; the panel required by Small Business Regulatory Enforcement Fairness Act (SBREFA) is set to begin meeting this week on the issue.
On the advocacy front, NAFCU shared updates on a CFPB letter asking for greater transparency and accountability in the potential use of AI and machine learning models since these models could influence things like supervisory prioritization. Additionally, NAFCU submitted a letter to the Federal Reserve urging them to avoid and unwarranted review of the regulated debit interchange fee cap and notes that debit interchange income is crucial to credit unions’ ability to combat skyrocketing fraud associated with card-not-present (CNP) transactions.
The meeting closed with discussion on the oral arguments for the U.S. Supreme Court case CFPB v. CFSA. The Department of Justice’s Solicitor General, arguing on behalf of the CFPB, highlighted examples of other agencies funded outside the appropriations process and compared the bureau to other federal banking regulators. Additionally, the Solicitor General conceded that standing appropriations cannot last forever, but contended that Congress can, at any time, remove the CFPB from standing appropriations and change the limits of the funding authority for the CFPB. Counsel for CFSA noted concerns about the lack of checks and balances with the bureau’s current funding structure.
The Regulatory Committee will next meet Nov. 14. NAFCU will remain engaged with regulators and ensure credit unions’ voices are heard in the rulemaking process.