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The NAFCU Board of Directors along with the association’s staff Tuesday met with CFPB Director Rohit Chopra to discuss several credit union related topics and share the industry’s thoughts on several of CFPB’s rulemakings. NAFCU Board Chair Gary Grinnell, NAFCU President and CEO Dan Berger, Senior Vice President of Government Affairs Greg Mesack, and Vice President of Regulatory Affairs Ann Petros were in attendance. 

NAFCU shared insights on credit union industry trends. NAFCU recently released the latest CU Industry Trends report, which provides insights based on call report data from the first quarter of 2022. NAFCU also discussed fintech accountability and supervision and the CFPB’s recent announcement that it would begin exercising supervisory authority over nonbank entities, under a largely unused legal provision of the Dodd-Frank Act to examine such nonbank financial entities that pose risks to consumers.

NAFCU offered support for the CFPB’s expanded supervision over fintechs and other nonbank entities, encouraging “all relevant regulators to ensure that when fintechs compete with traditional financial institutions, they do so on a level playing field where smart regulations and consumer protections apply to all actors in the consumer marketplace.” The association characterized the bureau’s efforts as positive first steps but emphasized the need for exercising its “larger participant” authority and suggested that it do so over peer-to-peer payment providers and buy-now-pay-later lenders.

The group also discussed the CFPB’s proposed section 1071 data collection rule, to which NAFCU has sought a number of changes, sighting the significant compliance costs and the additional burden it would place on credit unions as proposed. 

Of note, the group also discussed the CFPB’s focus on supervisory efforts on discrimination and "unfair" practices and its revised examination procedure guide for unfair, deceptive, or abusive acts or practices (UDAAP). NAFCU has sought feedback from members on the expected impact of the CFPB’s increased focus on discrimination and has updated its UDAAP issue brief to highlight the revision in the exam manual.

In addition, NAFCU’s Board and staff shared several thoughts on the CFPB’s request for information on consumer financial products and services, or "junk fees." The association recently submitted feedback stating that while it is generally supportive of the CFPB improving consumers’ understanding of financial products and services, its mischaracterization of fees in the financial services industry as “junk fees,” “excessive or exploitative fees,” or “inflated or surprise fees,” only confuses and frustrates consumers.

The CFPB also issued an  Advance Notice of Proposed Rulemaking (ANPR) on credit card late fees that financial institutions, including credit unions, collect. NAFCU and several trades requested the bureau provide a 60-day extension to the comment deadline, currently due on July 22. The association sent members a Regulatory Alert last month inviting credit union feedback on the ANPR.

NAFCU continues to engage the CFPB to ensure credit union priorities and concerns remain top of mind as they oversee the financial institution regulatory space.