CFPB continues to overstep with overdraft

We submitted comments this week strongly opposing the CFPB’s latest proposal on overdraft fees, calling on the bureau to rescind the proposal or exempt credit unions entirely (which the Dodd-Frank Act permits it to do).

This proposal’s limits on overdraft services will harm consumers that rely on these value-based services they choose to opt into, decreasing access and raising the cost of financial services.

The proposal also:?

• Exceeds the CFPB’s statutory authority by misapplying provisions to overdraft and impermissibly expanding definitions to bend the rule to fit its needs;
• Would impose a one-size-fits-all charge on all account holders, regardless of their overdraft usage, without considering proper incentives and consumer behaviors; and
• Will have broad ramifications across financial services as the marketplace and consumers react to constraints on larger entities and pressure smaller institutions to make changes they can’t afford in an attempt to stay competitive.?

The Federal Reserve Bank of New York released a report the same day as comments were due on the proposal, reinforcing our assertion that consumers know and understand the nature of overdraft services. ?

We’ll continue to fight for your ability to provide the services your members want when they choose credit unions as their trusted financial partner.

Read our detailed comments on the proposal here

Consumer Pulse Survey shows recognition of credit union difference

The latest Economic Update video dives into the results of our February 2024 Consumer Pulse Survey, which shows members—especially those in key demographic groups—recognize the credit union difference. Credit union members view their institution more favorably than those who bank at other institutions, have lower financial stress, and are more likely to engage in behaviors that promote financial resilience. Critical to our advocacy efforts, the survey results are yet another data point showing how you continue to meet your members’ needs and you must have the ability to do more. ?

Read the Consumer Pulse Survey results here

Relentless advocacy for the credit union industry:

• America’s Credit Unions’ Madison Rose and Mountain America Credit Union President/CEO Sterling Nielsen met with Federal Reserve staff this week on our concerns with its debit interchange proposal.??
• We continue to actively engage with the NCUA on its call report changes requiring credit unions to report specific fee income data.??
• We urged the Financial Crimes Enforcement Network (FinCEN) to release instructions and guidance on the form and manner of Beneficial Ownership Information requests as soon as possible.??
• We also told FinCEN that updating certain rules, regulations, and thresholds would relieve significant compliance burdens on credit unions.??

Missouri credit union leaders support field of membership modernization

Shout out to the leaders from United Credit Union, TelComm Credit Union, Mazuma Credit Union, First Missouri Credit Union, and United Consumers Credit Union, who testified before the Missouri House Financial Institutions Committee this week. Those credit unions—and more that attended the hearing—support a bill to modernize fields of membership in the state. Advocates showed why increasing access to credit unions will help those the banks have left behind. Thank you to the Cornerstone League for coordinating the successful day in Jefferson City.

Read more here

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World Credit Union Conference early bird deadline is April 12

A quick reminder that the early bird deadline for the World Credit Union Conference is April 12. This unique event—set for Boston July 21-24—is held in partnership with World Council of Credit Unions and is the only global credit union conference geared towards financial services professionals in our industry. You'll not only find the inspiration and strategies to transform challenges into opportunities for growth and impact, you’ll also build credit union connections from across the globe.?

Register today