CFPB, NCUA overreach threatens credit unions

Credit unions are operating in an increasingly burdensome regulatory environment. News this week related to the CFPB and NCUA has reinforced the mission of America’s Credit Unions: to advocate for and advance an environment where credit unions thrive.?

Yesterday, the U.S. Supreme Court released its decision that the CFPB’s funding structure is constitutional. With that holding, now the CFPB has even less accountability than the NCUA—which can spend whatever credit union money it wants. At least the NCUA gives credit unions the chance to provide some public feedback.???

The bureau’s unchecked actions continue to impact credit unions and their 142 million members, and we strongly believe that the CFPB’s current funding structure lacks accountability to Congress and the consumers the bureau is tasked with serving. America’s Credit Unions will continue to advocate for accountability and transparency at the bureau, as well as push back against the CFPB’s continued regulatory overreach.

Read details of the decision here

Additionally, America’s Credit Unions Chief Advocacy Officer Carrie Hunt wrote to NCUA Chairman Todd Harper and CFPB Director Rohit Chopra on the many ways regulatory overreach is increasing challenges and pressures for credit unions, particularly in the area of non-interest income.??

Our members provided us the data to show Chairman Harper and Director Chopra that these policies will lead to increased loan rates, higher credit card rates, decreased share savings rates, elimination of no-fee accounts, higher minimum balance requirements, and fewer job opportunities in their communities.??

As Carrie put it: it won’t be one single action, but rather the tidal wave of regulations and restrictions that could overburden credit unions and result in changes in the business model.?

Thank you for providing us with the data to make our case to policymakers, which continues to help us serve as the unified voice for the credit union industry as we position the movement for future success.??

Read our letter here

?

Additional regulatory oversight is not the answer

On the issue of regulatory overreach, we wrote to the House Financial Services and Senate Banking Committees to counter the false narrative NCUA Chairman Harper provided them in written testimony. We highlighted several instances where the numbers fail to back up Chairman Harper’s recommendations and show how they would be detrimental to a credit union system that continues to serve millions of members. We need policies that increase access to credit unions, not barriers that prevent credit unions from doing what they do best.?

Read our letter to the committees here

?

2024 Credit Union Elections Hub launches

We’ve launched the Credit Union Elections Hub as election season gets fully underway, a resource to help track the status of candidates around the country. Candidates supported by America’s Credit Unions, its PAC, and state Leagues have a 99% win rate as of this week’s primaries in Maryland, Nebraska, and West Virginia. ?

Check out the Credit Union Elections Hub here

?

Relentless advocacy to advance, empower, and protect credit unions:

• The House Financial Services Committee advanced a bill that would bring much needed transparency to the Community Development Financial Institutions (CDFI) Fund.
• America’s Credit Unions Chief Advocacy Officer Carrie Hunt and Senior Vice President of Advocacy Greg Mesack met with Treasury Department Thursday to discuss Cybersecurity Information Sharing Act implementation, stablecoin, credit unions’ financial literacy efforts, and more.
• All seven Congressional candidates we supported in the Maryland, Nebraska, and West Virginia primaries won Tuesday. They’ll now continue their campaigns for the general election in November.

Impact reports quantify credit union difference

I want to give a special shout out to the Leagues and credit unions putting out impact reports showing the many amazing things the credit union difference is capable of. I read Freedom First’s 2023 report this week on how 61% of its loans last year were made to Community Development Financial Institution Target Markets. I’ve also seen great reports from Leagues and state foundations with great data on the statewide impact of credit unions. These kinds of resources help make our case that credit unions need to be able to do more for members and communities by showing exactly how you make life-changing differences.?

2025 Wegner Award nominations open

Nominations are now open for the National Credit Union Foundation’s 2025 Herb Wegner Memorial Awards, the credit union movement’s highest national honors. These awards—presented annually at the Foundation Dinner—spotlight the leaders, initiatives, and organizations that represent the best of the credit union difference. Outstanding Individual Achievement and Outstanding Organization or Program nominations will be open through July 26.

Submit a nomination here

?